Vail Valley Voices: Marginal recovery in real estate
Vail, CO, Colorado
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 http://www.vailhomeowners.com.
The work-force communities from Avon to Gypsum are continuing to endure the brunt of foreclosures. Eagle County’s foreclosure rates are marginally down from the five-year high-water mark of 2010, both for transactions (481 to 457) and dollar value ($329 million to $283 million).
The Eagle County unemployment rate is marginally improving at 8.6 percent with a larger job base: 26,457 compared with last year’s 24,605.
Vail, Eagle County real estate: Pricing strategies for resort properties in Vail and the surrounding area appear to be outwardly successful, with the number of sale closings even with last year, according to a Prudential Colorado report.
However, dollar volume for all of Eagle County is down nearly 23 percent.
Currently, the number of listings are low, which should increase with some analysts holding firm in their view that a considerable shadow inventory is waiting to see some improvement in the market.
A brightening indicator, Vail Village in October was the strongest market in Eagle County. According to the monthly Land Title report, the average price per square foot for a single-family home in Vail Village has gone up 31 percent over last year to $1,764.
In a comparison among major Western winter resorts, several are seeing positive gains in real estate sales greater than Vail. Aspen and Pitkin County’s dollar volume through October increased by 4.7 percent and transactions by 15.7 percent. Both indices are tracking ahead of 2009 and 2010. Transactions in Eagle County were up 6 percent for the same month.
Of interest is the prospect of foreign flight capital expanding into U.S. markets.
Federal officials are taking note and recasting immigration policy to allow for real estate investment in exchange for longer visa periods to foreign investors.
A local developer is publicly promoting the real estate for visa program for his project.
Others are not so sure that the program would lower inventories for Vail to the degree that some believe is possible for the nation.
There are some analysts cautioning that Vail’s international market may be more shallow than is being speculated by enthusiasts.
Support Local Journalism
Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.
User Legend: Moderator Trusted User