Market Update, 3/12/13
Financing Now Available!
In the 4th quarter of 2007, the start of the economic downturn, lenders stopped offering financing on purchases in “Condo Hotel” developments. This has had a strong impact on prices at the Village. For a number of listings, by sellers who had to sell their condominiums, no financing available resulted in them becoming bank-owned or short sale listings, at lower list prices. These distressed properties caused the prices of all other listings in the Village to drop significantly! This brought the cash buyers into the market. Consequently, the number of sales per year slightly increased from pre-downturn levels (except in 2009), but the average price per sale went down approximately 50% from it’s peak before the downturn. This has obviously not been good news for sellers, but it has been great news for buyers. So far this year both the average price and median price for condominiums sold in the Village have been the lowest since 2009!
However conditions now seem to be changing. The number of distressed properties listed and then sold has dropped by about 48% and listing prices appear to be raising.
In 2011 there were 22 sold condominiums in the Village compared to just 16 in 2010, a 37% increase!
In 2010 and 2011, 15 of the sold condominiums were distressed properties 39.4%.
2012 sales were slightly less than 2011 with 18 Village condominiums sold. Only 3 were distressed property sales (16.6%), two closed in the 1st half of the year and one in December;
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a one bedroom that sold for $245,000: bank owned.
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a one bedroom that sold for $235,000: short sale.
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a three bedroom that sold for $825,000: short sale.
Here are the other 15 sales for 2012, all standard sales;
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9 were one bedrooms that sold form $235,000 to $352,000.
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1 was a one bedroom plus den that sold for $420,000.
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5 were two bedrooms that sold form $439,500 to $625,000.
Of the 24 current listings none are distressed properties (bank owned or short sales). As of this date there have been two Village condominiums that have closed escrow this year, both standard sales;
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a one bedroom that sold for $258,000.
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a three bedroom that sold for $1,637,500.
Currently there are three Village condominiums in contract, all standard sales;
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a two bedroom listed at $687,000.
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a two bedroom listed at $699,000.
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a two bedroom listed at $999,900.
Sold prices and listing prices in the Village do seem to be going up with the exception of the distressed properties.
Financing
I have a lender that will do loans on purchases at the Village to qualified buyers. We have recently closed escrows on several financed purchases using this lender. The rates and terms from this lender are competitive. Also, the lawsuit filed by the First Ascent HOA against the developer has been settled and it appears that the suite filed by 22 Station HOA has also been resolved (we are waiting official notification). This means that other lenders will be willing to loan on Village condominiums.
Time to act!
It is a great time for interested buyers! Some Village condominiums are listed at very good prices – a large Studio condominium listed for $259,000, a one bedroom listed at $269,000 and a two bedroom condominium listed at $519,000. There also is a custom 2 bedroom with a jacuzzi tub, a washer and dryer, a craftsman entertainment center and a south facing ski mountain view listed for $687,000.
Now after a great holiday period and we are into the winter ski season with lots of snow (26″ base on the lower mountain and an 100″ base on the upper mountain) skiers are anticipating a good ski year. As I predicted, prices have increased from where they were earlier this year, but they are still significantly lower that what they were at their peak. Condominium showings to interested buyers in the Village have increased dramatically and I expect to see an increase in Village sales as the winter progresses.
Contact me for more information; 530-913-6020 or info@GoSquaw.com