News
Editor's note: The following is an excerpt from the Vail Homeowners Association monthly report for September. We publish weekly excerpts from the association, which keeps a close eye on economic and political trends in and outside of the town. The newsletter electronic version with links to supporting documents is available at www.vailhomeowners.com
The Vail Town Council's optimism over its 2011 revenues is derived from positive indicators beginning to appear on its balance sheet.
According to a town report sales tax revenues increased by 11.4 percent during the summer months and the 2010-11 winter growth rate was 11.2 percent.
Vail Village redeveloped properties led the increase. Summer is about 29 percent of the volume of winter's business. Last winter saw double digit increases in international tourism, principally from Latin America.
For the 2011 year, Vail's sales tax revenues of $19.55 million are up 10.59 percent over 2010 with more collections remaining. This brings the town very close to tying the 2008 record-setting figure of $19.63 million.
Then there are the numbers, more good than not: The 2011 rates for both unemployment and foreclosures remain consistent with trends from the last three years. Late in the year, unemployment began to lessen slightly.
Other more prosaic indicators like trash collections showed a 30 percent volume decline, a sign that economic activity remains challenged. The number of Eagle County bank-sold units in November was high at 22 percent of all transactions, as compared with 6.7 percent in Pitkin County.
Eagle County poverty levels since the beginning of the recession are also reported to have risen.
Eager optimism for the 2011-12 winter season has been tempered with an unusually prolonged condition of modest snowfall. Local pundits are saying it keeps consumers in the shops and restaurants. Early robust snow next season should rebuild consumer confidence to pre-book ski passes and hotel reservations.
Ski industry officials have begun litigation against the U.S. Forest Service permit requirement that challenges ski area operators ownership of water rights essential to snowmaking operations.
Real estate in recovery mode: Eagle County real estate sales by the end of November attained parity with 13 of the last 14 years by topping $1 billion. There are instances of per square foot sale price being reported at or near prerecession prices for premium properties in the heart of Vail Village. A Jan.16 Prudential Colorado Properties report indicates that for the Vail Valley, transactions were up 4 percent over 2010 but dollar volume was off by 21 percent.
Sifting through the MLS data for both Vail Village and Lionshead, some are saying nationally that the bottom of the market has been reached, but some see prices dropping in other areas, prompting a hopeful view that prices overall could stabilize in 2012.
Countywide, the number of transactions are keeping pace with 2010 levels because of lower prices, as sellers are concluding that this is the new normal and are willing to sell at current market prices and move on. The gap between listed and sold properties has narrowed.
There is a difference of opinion among local analysts whether, as the market improves, the flow of new listings into the market will be equal to or greater than those selling.
One indication that recession inventory is clearing would be new construction starts for speculative residential development, which have yet to materialize as a notable trend.
The Vail Town Council's optimism over its 2011 revenues is derived from positive indicators beginning to appear on its balance sheet.
According to a town report sales tax revenues increased by 11.4 percent during the summer months and the 2010-11 winter growth rate was 11.2 percent.
Vail Village redeveloped properties led the increase. Summer is about 29 percent of the volume of winter's business. Last winter saw double digit increases in international tourism, principally from Latin America.
For the 2011 year, Vail's sales tax revenues of $19.55 million are up 10.59 percent over 2010 with more collections remaining. This brings the town very close to tying the 2008 record-setting figure of $19.63 million.
Then there are the numbers, more good than not: The 2011 rates for both unemployment and foreclosures remain consistent with trends from the last three years. Late in the year, unemployment began to lessen slightly.
Other more prosaic indicators like trash collections showed a 30 percent volume decline, a sign that economic activity remains challenged. The number of Eagle County bank-sold units in November was high at 22 percent of all transactions, as compared with 6.7 percent in Pitkin County.
Eagle County poverty levels since the beginning of the recession are also reported to have risen.
Eager optimism for the 2011-12 winter season has been tempered with an unusually prolonged condition of modest snowfall. Local pundits are saying it keeps consumers in the shops and restaurants. Early robust snow next season should rebuild consumer confidence to pre-book ski passes and hotel reservations.
Ski industry officials have begun litigation against the U.S. Forest Service permit requirement that challenges ski area operators ownership of water rights essential to snowmaking operations.
Real estate in recovery mode: Eagle County real estate sales by the end of November attained parity with 13 of the last 14 years by topping $1 billion. There are instances of per square foot sale price being reported at or near prerecession prices for premium properties in the heart of Vail Village. A Jan.16 Prudential Colorado Properties report indicates that for the Vail Valley, transactions were up 4 percent over 2010 but dollar volume was off by 21 percent.
Sifting through the MLS data for both Vail Village and Lionshead, some are saying nationally that the bottom of the market has been reached, but some see prices dropping in other areas, prompting a hopeful view that prices overall could stabilize in 2012.
Countywide, the number of transactions are keeping pace with 2010 levels because of lower prices, as sellers are concluding that this is the new normal and are willing to sell at current market prices and move on. The gap between listed and sold properties has narrowed.
There is a difference of opinion among local analysts whether, as the market improves, the flow of new listings into the market will be equal to or greater than those selling.
One indication that recession inventory is clearing would be new construction starts for speculative residential development, which have yet to materialize as a notable trend.
