Aspen Real Estate

PITKIN/GARFIELD COUNTY, Colo. - In another sign that the valley’s real estate market may be finding its equilibrium, September transactions in Pitkin County were the strongest they’ve been since April 2008, while in Garfield County, a new home in River Valley Ranch sold for $1.2 million, more than five times that of the median sale price for the year.

During September, a total of $137,723,013 in sales were recorded in Pitkin County, a 38 percent leap as compared to the same month in 2010. That’s the second strongest dollar month for the year, according to reports released by Land Title Guarantee Company. The total number of transactions, 86, also showed an increase of 38 percent over Sept. 2010.

Year to date, dollars for Pitkin County total $977,073,114, which reflects an 18.8 percent increase over the same time period last year. Aspen was responsible for 34 transactions, or $88.7 million in sales, including a $9.6 million single family residence within the city limits. In Snowmass Village, there were eight transactions totaling $16 million.

“We’re seeing some sales but it’s certainly not booming,” said Greg Rulon, a broker with Joshua & Co. in Snowmass Village, who noted that the road to recovery is taking place, albeit slowly. “The long-term trends are good, that bodes well. I think we’re going to ease out of this thing but it’s not going to happen overnight.”

Rulon said savvy buyers in this market are seeking the best value for the money and are discerning in their investments. “It’s the best priced properties, imagine that! We’re dealing with very sophisticated buyers that are looking for value,” he said.

If there are 10 units available in a particular complex, “The best value is going to sell first. Even the high end is more focused on that these days,” Rulon added.

Sellers in this market need to be patient as many properties are taking longer to move than before. A review of five properties - priced from $700,000 to $7 million- that sold in September showed time on the market ranging from 134 days to 1,042 days, or nearly three years.

All five had seen significant price reductions prior to sale, with an $8.8 million home a seeming bargain given its $14.9 million original list price.

In Garfield County, “transaction strength continued” from the prior month, while dollar volume decreased, according to Land Title. All told in Sept. 2010, there were 83 transactions for the month, which reflects a 50 percent increase over Sept. 2010. Total dollar amounts were $18,404,300, which is below August’s whopping $35.7 million in sales. But keep in mind that August 2011 was the second best single month in more than two-and-a-half years for Garfield County.

Bank sales continue to be strong in this market, with a total of 29 recorded in the county accounting for $3.8 million. According to Land Title, these accounted for 35 percent of the transactions and 21 percent of the dollars for the month. That’s on track with how bank sales are looking for the year, as well.

Phil Weir, a broker with Mason Morse in Glenwood Springs, also believes that right pricing is key as buyers are benefitting from the downward pressures placed upon properties by short sales and other factors.

“Prices are being established in certain areas where things will sell,” he said. “If bottom is where people buy property, we’re there.”

Weir, who has worked in this valley for 34 years and was also a broker while living in Roatan, Honduras, noted an increase in activity in both Lakota Canyon Ranch and Castle Valley.

“I was very surprised in that when I pulled up the statistics, there were 19 homes under contract, (and) 40 homes have sold since the first of the year. That’s amazing,” Weir said.

As is true in Aspen/Snowmass, many of those homes are being sold at enviable prices (at least from the buyers’ perspective) and have undergone several price reductions. That shift, coupled with loan programs ranging from FHA to rural development loans, have allowed certain buyers the opportunity to enter the current market.

Weir said that this year he’s “sold five houses to teachers,” and also noted that the real estate recovery depends on jobs. Plus, there’s a growth in businesses – from Valley View Hospital’s new cancer center to the implementation of a four-year degree from Colorado Mountain College  – which are being taken as positives for Garfield County.

“We’ve weaned downvalley a little bit off upvalley,” he said, a reference to the decreased importance of Aspen/Snowmass as a job hub.

Back up in Snowmass Village, Greg Rulon is staying positive after two strong months of Pitkin County real estate sales. While we remain miles away from the sales of six years ago, where in September 2005 there were 188 transactions and an astonishing $313,880,500 in sales, the proverbial light is shining at the end of the tunnel.

“Activity begets activity. It’s contagious,” Rulon said. Yet in a nod to the longer process now surrounding a transaction, he said “every sale has a story.”

September transactions at a glance

PITKIN COUNTY

Dollar volume: $137,723,013
Number of transactions: 86
Increase over September 2010 (dollar volume): 38%
Increase over September 2010 (transaction volume) 38.7%
Year-to-date dollar volume: $977,073,114 (18.8% increase)
Year-to-date transactions: 584 (16.8% increase)
Bank sales: Three sales,  $1.74 million (3.5% of sales, 1.3% of dollar volume)
Year-to-date bank sales: 45, $30.3 million (8% of sales, 3% of dollar volume)
Average single-family home price through Sept.: $4.1 million (down 5% from full year 2010)
Median single-family home price through Sept.: $3.5 million (up 11% from full year 2010)
Fractional sales: 24 (26% increase over Sept. 2010)
Fractional dollar volume: $8.7 million (7 percent increase over Sept. 2010)
Year-to-date fractional sales: 175 (31% increase over 2010)
Fractional dollar volume: $75.8 million (5% increase over 2010)

GARFIELD COUNTY

Dollar volume: $18,404,300
Number of transactions: 83
Increase over September 2010 (dollar volume): 3.5%
Increase over September 2010 (transaction volume) 50.91%
Year-to-date dollar volume: $208,106,900 (21% increase)
Year-to-date transactions: 664 (32.8% increase)
Bank sales: 29 sales, $3.8 million (35% of sales and 21% of dollar volume)
Year-to-date bank sales: 237, $42.7 million (36% of transactions, 21% of dollar volume)
Average single-family home price: $329,063 (down 15% from 2010)
Median single-family home price: $238,900 (down 20% from 2010)
Through September, 82 percent of the single family sales were $400,000 or less