Crested Butte Real Estate Market Update 7-27-09

Since last year the average list price for condos sold in the upper valley has dropped from $699,243 to $454,478.  A decline of 35%.  Average discount off of asking price has dropped from 13.5% last year to 8.7% this year.  This indicates that prices on condos have lowered to a more realistic level and investors and end users alike are realizing the value at their current levels.  The average list price for single family homes sold in the upper valley has dropped from $1,179,132 with an average discount off of asking of 7.9% in 2008 to an average list price of $843,444 this year with average discounts of 10.7%.  This would explain the increase of single family home sales in July which have been the majority of the sales activity.  Another interesting situation that has arisen this year are the Bank’s reluctance to “give away” their distressed, foreclosed properties.  In the past year or so these distressed properties were the driving force behind price reductions in the valley.  Now it appears the Banks are creating a bottom of which they simply choose not to drop prices further (see attached CNBC article).  This has a different effect on our market verses that national market as it simply tells investors and end users that are looking to buy in our market that prices may not fall further.  It is apparent with the sales that are occurring in July alone that many Buyers believe prices have reached the bottom.

Land has seen a serious decline in both value and activity this year.  With only $1,829,000 so far in sales this year, average list price of $352,342 and discounts averaging 25.8% land has been hit really hard.  Last year we had total sales of $21,939,000, average list price of $607,812 and discounts averaging 18%.   I can tell you that all of the construction companies and contractors in the valley are extremely eager to find work and their prices have dropped dramatically.  If you are looking to buy land and build, this may be your best opportunity in years.  Land loans are available and I can put you in touch with local mortgage brokers that can help you obtain financing.