New Construction vs. Resale Home Costs
One of the most interesting, niche market trends in the Summit Area over the last few years is the growing price gap between new construction and resale properties. Of course, newly built homes have always been popular for reasons that are not hard to guess - they feature current design trends, incorporate the latest tech, and feel pristine. But the question today is, will the cost of new construction ever not be worth it? While the price gap between new and resale is anecdotally apparent throughout the Summit Area - for example, new construction condos marketwide are selling for an average price 27% higher than resale condos - we’ll focus on two segments of the market with enough sales data for us to draw conclusions - single family home sales in Silverthorne and in Breckenridge. For purposes of this exercise, ‘new construction’ consists of homes built in the last five years. You can see that new construction and resale homes have followed the same sales price and sales volume patterns, but the difference in sales price is staggering. In Silverthorne last year, new construction cost on average 39% more than resale homes. This year, that number has jumped to 56%! That’s over a million dollar sales price gap. The number of new construction homes available for sale in Silverthorne this year has dropped significantly, therefore the number of new build home sales has followed suit. This drop in available inventory is surely behind this surge in value; indicating the demand in Silverthorne for new construction is as strong as ever. Year to date, resale single family home prices in Breckenridge are outperforming last years’ numbers by 20%. Meanwhile, new construction sales prices over the same period of time are 49% higher. The average value of a new construction home is a whopping 59% more than the average value of a home built prior to 2019. As noted in the graph, the percent difference in sales price between new and old homes in Breckenridge has been in the double digits since 2020. While the gap hasn’t quite grown exponentially in this sample, a price difference of this size is a serious consideration. To me, it begs the question - well, how much does a remodel cost? Conventional wisdom states that the ROI on buying a resale home and remodeling it yourself is not worth it, and in many conventional markets this is true. But after seeing the data we’re discussing here, I knew a deeper dive was called for. Today’s Homeowner created a fantastic, interactive graphic on home renovation returns in different markets around the country. Colorado as a whole significantly outpaces most of the country. If you break down the Silverthorne market in comparison to the metropolitan Front Range, most projects continue to outpace the national average even further. Unfortunately, Danny Lipford doesn’t include Breckenridge or other Colorado ski towns in his study. I think if he had, it could have skewed the whole conclusion. Again, new construction costs on average $1.55M more than resale homes in Breck. So does the average remodel cost $1.55M or more? Probably not. Honest estimations of remodel costs in high-end Colorado markets recommend budgeting $350/sq ft for a gut renovation. So let’s look at a luxury Breckenridge market example. 161 Dyer Trail is a 5382 sq ft home situated in one of Breckenridge’s most sought-after neighborhoods - The Highlands. This home is structurally sound with ski area views and a great lot, but aesthetically stuck in the ‘90s. It’s listed at $2,950,000, or $578/sq ft. Its new construction comparisons that have sold over the past year have an average price/sq ft of $1,105/sq ft. These new construction comparisons are stunners, to be sure, but they’re also further away from downtown Breckenridge and the ski resort, with north facing views. The new construction home for sale on the same street as our subject property - Dyer Trail - is listed for $6,250,000, or $1,315/sq ft. When you do the math, the conservative, high-end estimated cost of renovating this house puts the finished price per sq ft at $928. That’s a high number, but it’s still $177-$387 less than the newly built comps. That’s a $950k-$2m sales price difference. So let’s get back to our starting question. Will the cost of new construction ever not be worth it? In ‘suburban’ mountain towns such as Silverthorne, it’s hard to say. I think in markets like these it will remain a case-by-case basis. In resort towns like Breckenridge, from an ROI standpoint, I think it already isn’t. That’s a bold thing to say! But as the average sales gap between new and old continues, I believe those with the time, resources, and/or inspiration to take on a refurbishment can come out further ahead in the long run.
July 4th In The Colorado Mountains: Celebrating Independence Day In The Summit Area
Between the beautiful wildflowers, balmy temperatures, and endless lineup of fun events and festivities, there's no better place to be for the Fourth of July than the mountains! Wondering what to do? With a calendar jam-packed with Independence Day activities and celebrations, the Summit Area is sure to have something for everyone this holiday weekend. Whether you're looking for parades, fireworks, concerts, or local flavor, you'll find something to get excited about below. Breckenridge July 4th Events: Historic Breckenridge goes all out for the Fourth, with a wonderful mix of patriotic events and athletic pursuits. Cheer on professional and amateur racers alike as they race to the finishline of the famous Firecracker 50, kicking off the biggest parade of the summer; honor the nation and its history with readings of the Declaration of Independence and a patriotic concert at the Riverwalk Center; or immerse yourself in the arts with a street festival and BreckCreate Arts District events all weekend long. July 4: Breckenridge Independence Day 10k Trail Run July 4: Firecracker 50 MTB Race July 4: Breckenridge Independence Day Parade July 4: National Repertory Orchestra Fourth of July Spectacular July 4-6: The 41st Annual Breckenridge Summer Arts Festival Copper Mountain July 4th Events: Get ready for an action-packed long weekend at Copper featuring free live music with headliners Donovan Frankenreiter and Grace Potter, the Colorado mountain bike championship, and a rail jam for all those already longing for the snow. July 4 - 6: Red, White, Brews, and Tunes Free Concert Series July 5: Woodward Summer Rail Jam July 6-7: The Colorado MTB Championship Frisco July 4th Events: Celebrate the small-town way in Frisco this weekend with a parade, a free concert with the North Mississippi Allstars, and a family-friendly day of local history and learning. July is a great time to get out on the water, so consider spending a time at the Frisco Marina for boating, paddling, fishing, or soaking up the sun at the new Frisco beach. July 4: Frisco Fourth of July Parade & Street Party July 4: Free Show with The North Mississippi Allstars July 6: Frisco History Day Silverthorne & Dillon July 4th Events: Enjoy a quieter side of Summit County this weekend with more live music, local art, and the biggest farmers market in the county. July 4: Silverthorne Fourth of July Concert & Block Party July 4: The US Air Force Academy Band at The Dillon Ampitheater July 5: Silverthorne First Friday Art Market & Live Music July 5: The Dillon Farmers Market Keystone & Arapahoe Basin July 4th Events: Take in live music at some of the most scenic concert venues around. Try a gondola ride or a wildflower hike, and learn to love some of your favorite ski resorts without the snow! July 5: The Hazel Miller Band Live at A-Basin July 5: The New Arkansans Live In Keystone July 6: The Keystone Summer Comedy Kickoff Fairplay & Alma July 4th Events If your Fourth of July isn't complete without fireworks, then head to South Park, Colorado this holiday. Take in Independence Day with a distictly western flair in Fairplay, and join the town of Alma in celebrating the inaugural year of the South Park Bluegrass Festival. July 4: Fairplay Independence Day Parade & Free Concert July 4: Fairplay Fireworks Display July 6: South Park Bluegrass Festival Leadville July 4th Events Another opportunity for fireworks awaits in Leadville. If you've never checked out this incredible mountain town surrounded by Colorado's highest peaks, then there's no better time than this weekend. At it's height, Leadville was one of the wealthiest cities in the world. History buffs will appreciate Leadville's incredibly colorful past, and outdoor enthusiasts will be blown away by the countless recreation opportunities. July 4: Leadville Parade & Fireworks Display July 4: Annual 4th of July Airport Cookout July 5-7: The National Mining Hall of Fame & Museum *Please note that any fireworks that leave the ground are illegal in the State of Colorado, and fireworks of any kind (including sparklers, smoke balls, or fountains) are strictly prohibited on National Forest land. Wildfire is an extremely serious threat in the Rocky Mountain West, and visitors should know that firework regulations are strictly enforced. Don't risk a hefty ticket or endanger our beautiful towns this holiday!
Nellie's Neighborhood: Proud To Announce Our Latest Development
We are thrilled to announce in partnership with Summit County the public release of our latest project, Nellie's Neighborhood! Nellie's Neighborhood is Summit County's first small home community, with 15 deed-restricted single-family homes. Unit prices will range from the $270's to the $490's, and each home will be sold to a member of our local Summit County workforce. When we submitted our sales team proposal for the development, it was an exciting moment of reflection to see how far we've come as a team. As thirty-something-year-old locals, we love helping our peers and neighbors find a path to homeownership. We have been a part of the local workforce for a combined 58 years, and have firsthand knowledge of the housing needs and challenges our region faces. To be at a point in our careers where we can confidently devote our time, expertise, and professional abilities to building a lasting, positive impact on our hometown is something I'm immensely proud of. It is our hope to not just support our Summit community today, but to be a part of shaping an equitable, sustainable, and thriving Summit County for our next generations! It's been a fascinating experience so far learning more about how Summit County's Housing Department is tackling the community's housing needs, and what it takes to fund, build, and sell a workforce housing developement. We're looking forward to sharing more behind-the-scenes details as this story continues. Read on to learn more about the Nellie's Neighborhood development! More About The Project The County is developing the property with a total of 14 detached single family dwelling units, using accessory dwelling unit (ADU) stock plan designs prepared by Design Path Studios, and constructed by Summit Homes Construction. The ADU stock plan concepts are a mix of approximately 500 sq. ft. one-bedroom and 1,000 sq. ft. two-bedroom homes. The 15th home in the development will be an existing cabin that sits on the property, which will be fully rennovated prior to its sale. The development will provide smaller, more affordable homeownership opportunities for the local workforce, with building character and scale that blends into the surrounding neighborhood. Every new construction unit will be DOE Zero Energy Ready certified, with an impressive list of green energy features. Learn More About Summit Homes Construction Here Lean More About Design Path Studios Here Nellie's Neighborhood is located in unincorporated Summit County, convenienty located off of Miner's Creek Road. Centrally located in Summit County with easy access to Hwy 9, and only 0.5 miles from Frisco Main Street, the neighborhood will provide excellent walkability, bikeability, and access to public transportation routes throughout the County. Each property will be sold via lottery, which will be administered by the Summit Combined Housing Authority. The application window for the lottery is June 10th - July 1. Applicants must work 30+ hours per week in Summit County and meet County-determined income requirements to be considered. To be entered into the lottery, applicants must have their application completed by July 1. Nellie's Neighborhood also serves as “proof of concept” for property owners throughout Summit County who are potentially interested in using ADU stock plans to build an ADU on their own property. After commissioning the plans from Design Path Studio, Summit County is offering all four permit-ready, pre-approved plans to Summit County homeowners free of charge. The hope is to save residents the time and cost of working with an architect to design an ADU property. The stock plans are part of a multi-pronged approach by the county to make it easier for residents to develop ADUs, which are required to have deed restrictions aimed at housing longterm, working or retired county residents. Development of affordable workforce housing has been identified as one of the County’s greatest needs, and the Bill’s Ranch property is a key opportunity to address this challenge. The 2023 Summit County Housing Needs Assessment identified a need for up to 1,865 affordable workforce housing for-sale units Countywide by 2028. Nellie's Neighborhood cannot solve all of the identified housing needs, but the County’s goal is to maximize the number of homes on the property while creating a livable neighborhood that is compatible with its surroundings. Estimated Project Timeline May 2024: Site work and construction began June 2024: Lottery applications July 17th 2024: SCHA lottery selection October 2024: First home sales completed May 2025: Final home sales completed The Single Stack Unit Type The Double Stack Unit Type The Coop Unit Type The Shed Unit Type
Breckenridge Ski Resort Announces Plans For Peak 9 Improvements
On Tuesday, the White River National Forest announced the latest proposal from the Breckenridge Ski Resort for improvements to Peak 9, including a new gondola and lift replacements aimed at reducing skier traffic and enhancing the base area experience. After focusing for the last two years on upgrades to Peak 7 and Peak 8 to better transport skiers and riders throughout that terrain, giving Peak 9 the attention it deserves next is welcome news. For all of those who like to start their day at the Quicksilver lift, including Steve and I, the bottleneck at the Peak 9 base is a known challenge. Breckenridge Ski Resort’s plan includes a new Gondola, a new Peak 9 ski school learning area, and an upgraded C-Chair. The biggest improvement is surely the new Gondola from the Maggie/Quicksilver area, which will feature a midload station halfway up the Frontier ski run, and a summit station next to the current A-Chair summit. The Gondola proposal also includes a new learning area for ski school off of the midload station with two conveyor lifts, a warming hut, a bathroom, and snowmaking facilities. Ski school usage of the Quicksilver SuperChair is one of the leading causes of congestion at the Peak 9 base area, so moving ski school’s infrastructure, and giving skiers and riders two base lifts to choose from, will likely have a big, positive impact! The final piece of the current proposal is replacing Breckenridge’s oldest running lift - the 52-year-old double C-Chair - with a high-speed six-seater. Breckenridge VP and COO Jon Copeland said in a statement on the project proposal: “This project aligns with our resort’s priorities to continue to improve flow and circulation across our Five Peaks, specifically in and around our base areas and main portals to the mountain, focusing on upgrades that make our resort better versus bigger”. Copeland said. Because the majority of the project would be built on National Forest land, which is leased by Breckenridge Ski Resort on a special recreational use permit, approval of the proposal by the US Forest Service, USDA, will need to be granted before these plans become official. The White River National Forest division is currently accepting public comment, and is in the process of vetting the proposal before delivering a response as mandated by the National Environmental Protections Act. Whatever the outcome, we look forward to seeing what’s in store for Peak 9!
Breckenridge Investment Property: Two Examples With Big Returns
Because of my background in vacation rentals and property management, I get asked all the time ‘what is the best investment property in Summit?’ There are way, way too many nuances and factors to take into consideration for me to answer this question in one blog post, so instead, today, I’m going to talk about two of our current listings and explain what makes them two of the greatest investment opportunities on the Breckenridge market today! When people say they are looking for an ‘investment property’ in the Mountain Region, they are usually referring to one of two approaches. The first approach is one that’s gained a ton of attention in the last decade - finding a rental property that will generate rental revenue, and (in a perfect world) a passive income. The second approach is finding a property with untapped equity opportunity, and investing in the appreciation gains over time. The properties I’m highlighting today are great examples of each tactic. First up, we’ll start with our fantastic listing at 465 Four O’Clock Road! Sundowner Condo W1 For years and years, I have been singing the praises of one-bedroom condos with great locations from the rooftops. Generally speaking, one-bedrooms have the best return-on-investment (ROI) in town, and if you’re looking for a true, short-term rental property, this is where it’s at. The Breckenridge vacation rental market is flooded with two and three bedroom condos - about 75% of the condo matrix in Breckenridge is of this size. Per Breckenridge’s short-term rental rules, a two bedroom condo can sleep eight people and a one bedroom can sleep six. While a two or three bedroom condo is appealing to own for most folks in order to comfortably house their family or friends, from a rental guest’s perspective, the extra two sleeping spots are rarely worth the increased nightly rate. And we haven’t even touched yet on how many visitors to Breckenridge only need one bedroom to begin with! One-bedroom condos will always have lower operating costs - lower sales prices, lower HOA dues, lower utility bills, and lower insurance rates - all while out-earning their two-bedroom counterparts on average by anywhere from $10k to $35k per year! Sundowner Condo W1 is a fantastic rental property not only because of its size, but also because of its location. The Four O’Clock neighborhood in which Sundowner is situated is honestly my favorite Breckenridge Rental Zone 1 neighborhood. Sundowner is four blocks to Breck’s historic Main Street, on the free bus route, two blocks from the town’s hiking and biking trail network, steps away from the Upper Village pool and hottub complex (membership included in the HOA), and two blocks from the Snowflake Chairlift, which has all of the convenience of the larger base areas of the Breckenridge Ski Resort without any of the chaos. All of this translates into big checkmarks on your rental’s Airbnb and VRBO listings that will naturally boost the property’s visibility and desirability. While of course our listing isn’t the only great one-bedroom in Breckenridge, our sellers are currently grossing over $50k per year in short-term rental revenue, and their 4.9 star superhost Airbnb listing is included in the sale. The property is being sold fully furnished and turnkey, so its next owners will be walking into an established and profitable business. The walk-in pantry and lockable 5x8’ storage closet are just the icing on the cake with this one!. 161 Dyer Trail This stately gem is pretty much the polar opposite of a one-bedroom ski condo. With impressive bones and an unparalleled setting, this 5,300 sq ft estate presents a rare opportunity to redesign a legacy home in one of the most coveted neighborhoods in Breckenridge. 161 Dyer Trail is one of the older homes in the Highlands at Breckenridge - which means significantly more square footage than the Highlands homes built in the last decade, and an undeniably better lot that is closer to Main Street, completely private, and with unobstructed Breckenridge ski resort views. The property is in great shape, but as a home built in the late 90’s, it could benefit from some updates or remodeling. Because of that, this home is priced well below what other homes in the Highlands neighborhood of this size are selling for. Now don’t get me wrong - HGTV is not the real world, and a ‘reno’ or a ‘flip’ this is not. In the Summit Area there is basically no such thing as a ‘flip’ and I would never recommend our market to someone in that investment space. This also isn’t a rental property candidate, as it isn’t located in an area that allows short-term rentals. Rather, what makes 161 Dyer Trail an investment opportunity is the expected appreciation over time plus the equity-building opportunities that will come from undertaking aesthetic updates. The location alone is a sound investment, since there are fewer and fewer buildable parcels in the Town of Breckenridge, and the Upper Blue River Basin is inching closer to full build-out. Redevelopment is the future of new construction in the Colorado High Country. If a new owner was to take on some straightforward projects at this property, they would immediately see that added value. If a new owner were to complete a full remodel - let's say at the (very doable) cost of 500k - current market analysis suggests this property could then sell for about 1M more than current asking price, for a 500k return. This estate is a legacy property in waiting. A discerning investor will see the chance to both capitalize on yearly appreciation and equity returns, and - even better - get to enjoy time at their mountain dream home. Stocks and bonds are great and all, but you certainly can’t count on them to help you beat the I-70 traffic to the mountain on a powder day! Nowadays, the term ‘investment property’ comes with quite the negative connotations. I understand why that is, but the reality we’ve come to realize is that everyone looking to purchase Real Estate is looking to make a good investment. The advice I’m sharing here is not meant for corporations or venture firms (which don’t have a presence in our market anyway), but rather meant for anyone who’s considering buying property in the Summit Area. If you have questions on either of these great properties I’ve highlighted today, want to learn more about other opportunities in our area, or hope to dial in your Real Estate search with the help of a pro, I’d love to talk. Reach out on the form below, or give me a call anytime! *Advice is provided as an opinion of the author, and specific results are not guaranteed.
Vacant Land Scams: What They Are & How To Protect Yourself
Whether you own land, or are looking to buy land, read on for some advice on how to spot fraudulent sellers or listings, and protect yourself. In today’s world, fraud is regrettably everywhere. The world of Real Estate has not been spared, and the last two years have seen a significant uptick in vacant land scams in Colorado. The good news is that word has caught on about how these scams operate, and Realtor boards and title companies in the High Country are better prepared to prevent them. Whether you own land, or are looking to buy land, read on for some advice on how to spot fraudulent sellers or listings, and protect yourself. What Are Vacant Land Scams? First up is understanding how exactly these scams work. ‘Land scams’ are when a scammer lists a property they do not own - either with a Realtor or as a For Sale By Owner - in the hopes of selling it through a legitimate, remote closing and collecting the funds. The scammers primarily target vacant, unimproved land, because there’s nothing to inspect, little to no access issues, and these types of property have a higher chance of a ‘clear title’. A ‘clear title’ means that there are no liens against the property (like a mortgage) that would increase the amount of signatures and identity checks needed to successfully close on the sale. While remote closings have been a boon to legitimate buyers and sellers in the last few years, fraudsters are able to exploit lax notarization guidelines and the lack of in-person contact to successfully impersonate property owners. Many times, scammers hire Realtors to list the property to add a layer of legitimacy to the scheme. In the worst cases, these fraudulent sales are fully executed - meaning Buyers unwittingly pay the scammer for the property. While the Buyers would receive a deed to the property, once the scam is uncovered, ownership would revert back to the previous owner. How Can You Spot A Fraudulent Seller? While high tech crimes have become more sophisticated, luckily, most scammers have not. As a Buyer, you will not be able to speak to a Seller directly, but you can ask your buyer’s agent to vet the listing agent’s experiences with the Seller on your behalf. Here are some telltale signs that a Seller may not be who they say they are. They primarily communicate via email or text. If forced to be on a phone call, they will use bad connections to obscure accents. They use a Google Voice phone number, often out of Los Angeles or New York City. They are in a hurry to sell - watch for listing language like ‘motivated seller’ or ‘priced to sell quickly’! They price the property well below market value to attract Buyers willing to move quickly. If you see land being sold for a price that seems too good to be true, it probably is. There are no 'For Sale' signs on the physical property. They were referred to their listing agents by Realtors in other markets, or via a lead generation website (like Zillow), and their listing agent has never met them in person. Obviously, not all sellers who are introduced to their Realtor in these ways are scam artists, but if other things aren’t adding up, this can be a red flag. They overplay that they are ‘traveling’ to hide the fact that they are based overseas. They refuse to use a remote notary they did not choose themselves. When asked, they will not share their photo ID or other identifying documents with Realtors or Title Officers. As An Owner Of Vacant Land, How Can You Protect Yourself & Your Property?* While there are no guaranteed ways of preventing a land scammer from targeting your property, there are a few things you can do to stay informed and to safeguard your property. One of the easiest things you can do that I recommend to all of our land clients, is to set up a Google alert for your property address. This way, if your property is listed on any MLS or listing site such as Zillow, Redfin, or Trulia, you’ll be one of the first to know. If your address on tax records is different from your informal address (example: vs. 0011 CR 1176 vs. 11 Heeney Road), set up alerts for both. If in the Summit Area, contact each of our local Title Companies to identify yourself and request they keep your property flagged on their internal ‘not selling’ list. Ask your local Realtor to keep an eye out on your behalf. Make sure all of your contact information is up-to-date with the County Assessor. This allows Realtors and Title Officers dealing with a scammer to get in touch with you and verify your identity. If you discover your property is listed for sale without your consent, contact the Colorado Bureau of Investigation immediately. You'll find their contact details at the bottom of this post. After reporting to the CBI, we recommend also filing a complaint with the federal IC3 Division. How Can Buyers Protect Themselves When Buying Unimproved Land?* Luckily for Buyers, this list is pretty short. Lean on your professional advocates! Never, ever buy land without the involvement of a licensed Title Company who is willing and able to insure the Title. Work with a Buyer’s Agent who is experienced in rural, mountain region land sales, as well as familiar with the current land scam trends. Lastly, if you believe someone is trying to fraudulently sell your property, or that you have been a victim of a vacant land scam, please alert the Colorado Bureau of Investigation, High Tech Crimes Department - Attn: Traci Dowd | Traci.Dowd@state.co.us | 303-968-5406 Reportwirefraud.com If you are a victim of a vacant land scam, there are legal remedies but they will likely be time consuming. The mountains are supposed to be an escape from the stress and frenzy of the modern world. With common sense tactics, and by relying on local professionals working in your best interests, we can ensure the land stays that way! *Advice is provided as an opinion of the author, and preventative methods are not guaranteed to stop fraud. Please consult your legal representative and local real estate professional to discuss your best course of action if you are concerned about Real Estate fraud.
Summit Residential Sales Prices Off To A Strong Start This Winter
As the days in the High Country get longer and the snow on our peaks gets slushier, it's hard to believe Spring Break is winding down and the end of the ski season is on the horizon. The end of winter, however, brings with it the beginnings of ‘selling season’ as we like to call it. As listing and buying interest ticks up among our clients, it feels like a perfect time to take a look back at what the real estate market’s been doing over the last couple of months. It might surprise some, but in the first two months of 2024, the Summit market has been clicking right along. The number of sales is up significantly from last winter, and closed volume (the total sales price of all residential properties that have sold) is $35.28M more than last January/February. Both the average and the median sales price is also up year to date in all residential categories. While the data for March is not yet finalized, the average sales price this month is on track to beat March of 2023 by a whopping 30%. Here’s a graphic from our local Title Company of the Rockies with the sales data further broken down for single family homes vs. condos/townhomes/duplexes. I don’t have an appealing graphic for it yet, but Northern Park County is also trending up from last year's numbers. Average sales price in Park is up 12.5% this year so far. Sales volume for January and February is up by $12.4M, or 24%, and the average list price to sold price ratio jumped by a very robust 3.6%. Over these two months, there was one more new listing than last year, and four more closings. Now, many of you will remember last winter was a bit of a volatile time for the real estate market. Between reworked short-term rental regulations, spiking mortgage rates, and recession fears, uncertainty was swirling at the start of 2023. A year later, consumers have settled into our new normal, and they’ve decided the benefits to purchasing a mountain property continue to outweigh drawbacks like high interest rates or rental restrictions. The general outlook was much less unsettled this winter, so one could argue it’s not hugely telling that the market’s stats are much improved. However, in conversations with our team’s buyers, I’m hearing a lot of creative thinking, willingness to compromise on their original vision, and renewed motivation. Mindsets like that, paired with the low inventory we now consider standard, indicate to me that we’re gearing up for another solid summer in the Summit Area. And if we ever catch those three rate drops the Fed has been dangling like a carrot in front of us, I think we’ll all be off to the races. Do you see things differently? Do you like pouring over the data as much as me? If you do, I’d love to hear from you, so message me below or find me hiking Peak 8 or Peak 10 this week at Breck!
Summit Sky Ranch Announces It's Newest Phase: The Outlook
We are thrilled to announce that news is out on the next phase at Summit Sky Ranch in Silverthorne - The Overlook at Summit Sky. Since it's establishment in 2018, the exclusive Summit Sky Ranch has been one of the most sought-after neighborhoods in the Summit Area. The Overlook will be the first new phase in over three years, and will be sure to generate much excitement. Current plans for The Overlook include a total of 17 new, 4,500+ sq. ft. homes. The parcels will be significantly larger than previous Summit Sky phases, with approximately 3 acres per building envelope. The Town of Silverthorne does not have The Overlook on its building department docket for 2024, so we'll likely not see the lots platted and ready for sale until 2025 or onward. While this is not set in stone, it's looking like The Overlook will be 'design-builds' vs. 'estate lots' - meaning that the developer will be selling new construction, as opposed to selling undeveloped lots for buyers to build custom homes. As with all previous Summit Sky phases, The Outlook will have a strong emphasis on indoor-outdoor living with floor-to-ceiling windows and expansive outdoor spaces such as decks, patios and balconies. With the rugged peaks of the Gore Range on one side and the verdent aspen groves of the Blue River valley on the other, homes will surely be positioned to make the most of the 360 degree vistas. We will also expect open floors plans, large kitches, at least two primary suites, 3+ car garages, premium materials and high-end finishes. In addition, homeowners at The Outlook and their guests will have access to Summit Sky Ranch's world-class amenities. These extraordinary neighborhood amenities include: The Aspen House: a mountain-modern clubhouse featuring a year-round ourdoor pool and hot tubs, fitness center, wellness studio for yoga & pilates, fire pit, library, business center, kid's rec room, catering kitchen, and community beer and wine taps in the great room. Lake Everist: a private, 20 acre lake open to for paddleboarding, kayaking, and canoeing, and full stocked with steelhead, trout, mountain whitefish and more. The Lake House: a community lodge feature a boat ramp and docks for easy lake access, outdoor grilling space and a community fire pit. The Observatory: a private astronomical observatory for residents to take full advantage of the elite stargazing this dark sky certified community offers. World-class fly fishing with private river access on the Blue River. Exclusive trail access for hiking, mountain biking, snowshoeing, and nordic skiing through the community and connecting into the renowned Eagle's Nest Wilderness and Gore Range Trail network. The Summit Sky Town Park: a multi-use sports field, dog park, sledding hill and disc golf course with a public pavillion that's accessed by the neighborhood trail system. All within 15 minutes to Silverthorne's revamped downtown, and fantastic proximity to all four of Summit's ski resorts. We are excited to see how the developement team's plans for The Outlook at Summit Sky advance, and can't wait to see these luxury homes in person. If you're interested in staying up to date on timeline, developer specifications, and general information, it would be our pleasure to add you to our mailing list for The Overlook at Summit Sky. Just use our contact box below with '@theoutlook' in the message field!
What Is A Home Inspection & Why Is It So Important
The residential home inspection and inspection contingency period is an integral part of every real estate purchase. It’s a chance for all parties to learn more about the property that is for sale, and renegotiate contract terms if needed. The inspection is often the most consequential contingency in the Colorado Contract to Buy and Sell, but it can be a confusing time for buyers and sellers who haven’t been through it before. Without a complete understanding of the process, and what a home inspection can or can’t accomplish, buyers and sellers may feel unclear, apprehensive, or misled. We don’t want that, so today, we’re going to tackle some FAQs about this important part of real estate! What Is A Home Inspection? A home inspection is a non-invasive, visual examination of the accessible areas of a residential property for the purpose of identifying any issues. Issues found during a home inspection are referred to as ‘defects’. A residential home inspection covers a thorough examination of all systems and components of both the interior and exterior of a property. Findings of the physical examination are then documented in an inspection report. While homeowners can have a home inspection done at any time to learn more about their house, they are most commonly performed as a part of a real estate transaction. Who Performs The Home Inspection? While buyers are within their right to inspect a property themselves, unless you are a licensed professional in this space, we highly recommend hiring a professional Home Inspector who is certified with InterNACHI (The International Association of Certified Home Inspectors - www.nachi.org/CO). Residential home inspection is not a regulated industry in Colorado. So we believe it’s essential to work with an inspection company that is fully bonded and insured, and an Inspector who has passed InterNACHI’s rigorous certification exam and adheres to their code of ethics. Luckily, there are several fantastic, certified Home Inspection companies working in the Summit Area! Who Pays For The Inspection? Since the inspection report is for the information and benefit of the buyer, the inspection and standard add-on services are almost always a buyer expense. While Inspectors use a standard methodology for every report, buyers can gain invaluable insight on their future home by building a relationship with their home inspector. Inspectors can answer questions on the report, make recommendations on how to fix issues that are found, and even show buyers how to operate and maintain mechanical systems, plumbing systems, and more. Specialized inspections may be a negotiable expense, and who covers the cost will be dictated by the Inspection Resolution. Unfortunately, if there are issues found with the property, and the buyer and the seller cannot come to terms on an Inspection Resolution, inspection costs are not refundable. What Does The Home Inspection Cover? Most inspection reports will document details on the following (and more), including whether a defect was found, and the severity of each defect. All appliances such as ovens, refrigerators, dishwashers, washers, and dryers. Mechanical and plumbing systems such as furnaces, boilers, water heaters and well pumps. Basements, crawlspaces, and attics. Interior finishes such as flooring, drywall, light fixtures and cabinets. Fireplaces Kitchen and bathroom plumbing fixtures. Decks, balconies, patios, and driveways. Garages and outbuildings. Exterior siding and windows. Landscaping, grading, and foundations. Electrical panels and outlets. Roofs (inspected via drone; on-roof inspections can be scheduled with a roofing specialist if needed). Thermal imaging and 360 degree photos. Additionally, there are a few inspection add-ons we often recommend when applicable. These include sewer scopes (for properties on municipal water), well strength tests (testing the water pressure and flow rate of a well), water quality testing (we recommend this for properties on well water), and 72 hour radon inspections. Radon is a big deal in Colorado, and while I won’t fully cover the topic now, please find the EPA Buyers & Sellers Guide to Radon here. If a possible issue is identified that’s out of the scope of a standard home inspection, buyers can hire a specialist to inspect the property as well. Some examples of this include mold remediators, structural engineers, and licensed plumbers/HVAC techs. Does The Buyer Have To Attend The Inspection In Person? Nope! All licensed home inspectors welcome buyers to attend, but it is not required. An inspector’s goal is to help buyers gain confidence in their purchase, so if a buyer can’t attend in person, an inspector will do whatever it takes to achieve that - whether by video call, 360 degree photography, or a followup call after the buyer receives the report. Our team also offers to attend all of our clients’ inspections, whether they’re able to come or not, to act as our clients’ extra eyes and ears. Sellers should note that inspectors in the Summit Area are affiliate members of our local REALTOR Board, and can schedule their inspection and gain access to homes in the same way as real estate agents. This helps ensure the physical home inspection is as noninvasive and secure as possible. How Does My Contract’s Inspection Contingency Work? The inspection contingency in the Colorado Contract to Buy and Sell is made up of three deadlines, each with a corresponding standard contract. Here’s a brief explanation of what each means, and how they relate to one another to make up what most Realtors refer to as ‘the inspection period’. Inspection Objection Deadline: this is the date by which the buyer has to submit their Inspection Objection to the seller*. The Objection is what the buyers want the seller to do. The Objection is written as a list of every defect found in the inspection the buyers want to address. The list both describes each issue, and proposes a fix for each one with a deadline for completion. The buyers are the only party who sign the Objection. Inspection Resolution Deadline: this is the date by which the seller must respond to the Inspection Objection with their proposed Resolution. It’s usually 1-3 days after the Objection deadline. The Resolution is what the sellers are willing to do. It can be written as a list detailing each fix, or it can be a generalized statement (such as, sellers will hire a licensed contractor to fix all items)**. The sellers sign the Resolution, and if the buyers agree with the terms, the buyers will sign too. Once signed by all parties, the seller becomes contractually obligated to do everything detailed in the Resolution by the agreed upon time. If the buyers do not agree with the terms and no compromise can be reached, the Contract to Buy and Sell will automatically terminate and earnest money will be returned. Note that in the Summit Area, many Inspection Resolutions are negotiated verbally between the parties’ Realtors before being put in writing. You won’t be sending multiple Objections and Resolutions back and forth! Inspection Termination Deadline: if anything in the inspection makes the buyers realize ‘nope, not for me’, the buyers can choose to terminate the contract on or before the Inspection Termination Deadline. The Inspection Termination deadline is usually the same day as the Inspection Objection deadline. Note that the Termination and the Objection are mutually exclusive. If you submit an Objection, you have to go through the Resolution negotiation. The Termination is only used if the buyers are not at all interested in moving forward after the inspection’s findings. To end the Contract to Buy and Sell this way, the buyers sign a contractual Notice to Terminate and deliver it to the sellers. Once the Notice is given, earnest money will be returned to the buyers. While it’s best practice to share anything uncovered in the inspection with the sellers, buyers can terminate without having to justify their decision. This is why I think it’s critical for all buyers - no matter how hot the market - include the Inspection Termination deadline in their offers. It’s one of the biggest buyer safeguards the Colorado Contract has! * Ideally, I recommend buyers have their home inspection completed at least two days before the first inspection deadline, so we have enough time to go over the report and strategize. ** In the Summit Area, it can be difficult to find and schedule contractors and handymen for projects under tight deadlines. It’s just a reality of living in a rural mountain community! Because of this, it is common for sellers to offer either a reduced sales price or a closing credit to the buyer instead of completing the material fixes themselves. If the buyers agree to a monetary resolution, the Inspection Resolution contract is not used. Instead, the buyers will withdraw their Inspection Objection via a second signature, and the sellers and buyers will then sign a Contract Amendment with the new sales price or credit. If I’m Buying A House ‘As-Is’ Can I Still Get An Inspection? Yes! This is one of the biggest misconceptions we encounter on the inspection contingency. Just because a property is being sold ‘as is’, does not mean that a buyer automatically loses their right to have the home inspected and know what they’re getting into. In fact, it doesn’t even mean you have to waive your inspection contingency! Phrases like “this home is being sold in ‘as-is’ condition” or “buyers agree to purchase home ‘as-is’” are used to convey intent in marketing and during negotiations, but are non-binding terms. Or to put it differently, legally speaking, there is no such thing as ‘as-is’. If a seller includes a remark that the home is being sold ‘as-is’ in the listing, it indicates that they know some (or a lot of) work is needed, and they want buyers to agree to take on the responsibility for any repairs. Just because this is the ideal scenario for the seller, does not mean buyers have to accept those terms. For our buyers looking at an ‘as-is’ purchase, our recommendation is usually to keep the Inspection Objection, Inspection Resolution, and the Inspection Termination deadlines in the contract, and include language accompanying the offer stating: The buyer is willing to take the property in "as is" condition, unless a major health, safety or structural issue is found; in which case buyers may choose to terminate or negotiate a resolution with the seller. This type of provision is most successful when the work appears to be mostly cosmetic to both the seller and the buyer; conditions like outdated interiors, lots of wear and tear from rentals, an estate sale, etc. It gives the seller some assurance that the buyers won't nickel and dime them over the inspection report, but also reiterates that the buyers retain all inspection contingency rights in case something significant is uncovered. Of course, in an ultra competitive sellers market like the one we just lived through, buyers may consider giving up their Inspection Objection and Inspection Resolution to make their offer more competitive. However, buyers should always keep their Inspection Termination, and I will always advise buyers to still have the property inspected by a professional just to make absolutely sure. And this nicely brings us to our next question. If I Waived My Contingencies, Can I Still Renegotiate If Something Comes Up In The Inspection? The answer to this question is more nuanced, but yes, buyers can try! If the Inspection Objection and Resolution deadlines are not included in the Contract and something significant is found in the inspection, there is no formal framework for renegotiating, but buyers can absolutely still have their Realtor share the inspection findings with the sellers and ask them in good faith to meet halfway. I cannot tell you how many times over the last 5+ years our team has maneuvered this exact scenario, from both sides! The seller in this scenario has the contractual right to refuse to renegotiate, but sellers, let me ask you a hypothetical: if you’re already a couple weeks under contract, and the inspection finds out you need a new roof, would you rather let the buyers terminate the contract, return the earnest money, put your house back on the market, and have to disclose your roof is shot to new prospects (or worse - replace it yourself), or would you rather lower your sales price or give a credit to the buyers who are already on the hook and invested? The vast majority of the time, sellers will choose the latter, and they're not wrong to do so. It’s also important for both buyers and sellers to keep in mind that if a new mortgage is involved, lenders can decline to underwrite the loan if serious home inspection defects like end-of-life roofs, structural problems, or heating or water issues are present. Even if the Inspection Termination was waived or the deadline passed, a buyer could still terminate the contract in this situation based on their loan deadlines and have their earnest money returned. What Home Inspection Findings Are The Biggest Problems? The biggest issues that can be uncovered in a home inspection can be categorized into what I refer to as the ‘Big Three’: Structural, Heath, and Safety. If an issue is noted that falls into one of these categories, it is going to be flagged as a significant defect. Structural problems are the biggest red flag for buyers and problematic fixes for sellers. Structural defects include things like water damage, broken windows/window seals, rotting decks, compromised roofs, and sinking/crumbling foundations. All of these things require specialized, professional assessment, and are big ticket repairs. Serious consideration should be given to any structural defect by both sellers and buyers. These types of issues are often a can of worms, and will certainly become bigger problems if left unaddressed. Health defects really run the gamut from cheap and easy fixes, to costly and time consuming projects. Carbon monoxide detectors that need new batteries are considered health defects, but so are high radon levels and mold. High radon levels are much more common in the Colorado mountains than mold, but remediating either of these health concerns requires a specialist, and usually has a price tag in the $1,500-$5,000 range. Safety defects, while still not to be taken lightly, are normally the most easily remedied of the ‘Big Three’. Examples of safety defects we often see include old electrical outlets, loose stairway railings, or worn mechanical system wiring. All of these defects have straightforward and inexpensive fixes: old outlets can be replaced with new GFCI outlets, loose railings take an hour of labor to re-secure, and new connectors for a furnace, water heater or boiler are under $35. The most costly safety-related defect you’ll encounter is if there is something wrong with a heating system - but even though more expensive, it’s still easy to hire a plumber or HVAC tech in our area to take the job. What Do Sellers & Buyers Typically Agree To On An Inspection Resolution? As you can imagine, Inspection Resolutions vary wildly. Every property is unique and every transaction differs. That being said, in the Summit Area, there are a few compromises between the sellers and buyers we see more often than not. Minor Fixes: when a property is in overall good shape and doesn’t need much, sellers often agree to take care of some marginal or minor fixes themselves or with a handyman/GC before closing. Escrowed Funds: if a significant defect is found that requires a lengthy repair, sellers can agree to set aside a portion of their profit with the Title Company (called ‘escrowing funds’) to pay the final bill once the repair is complete. Once the agreed-upon project is finished, the invoice is given to the Title Company to pay out of the escrow account. Any amount left in the escrow account is then released to the seller. This type of resolution is less common in our market, but it comes in handy if a seller does not want to pay cash out of pocket, or if a seller agrees to fix something that has an unknowable timeline or cost. Credits: as mentioned above, around here, it can be difficult to find and schedule contractors and handymen under tight deadlines. It’s just a reality of living in a rural mountain community! Because of this, it is very common for sellers to offer either a reduced sales price or a closing credit to the buyer instead of completing the repairs or projects before closing. A reduced sales price is usually used if the buyer is purchasing in cash. A credit towards the buyers’ closing costs is usually offered if the buyer is purchasing the property with a mortgage. The rationale is that the buyers can then use this cash saved to tackle any needed home repairs themselves after closing. What Is A Seller’s Pre-Inspection? Simply put, a seller’s pre-inspection is a home inspection paid for by a seller and performed by a licensed inspector before the seller’s property goes on the market. While not commonplace, a pre-inspection can be valuable to both buyers and sellers. There are a couple scenarios in which a seller could benefit from a pre-inspection. The first is if a seller is selling a home they don’t know much about - perhaps the property was inherited, or professionally managed by a rental company, or purchased without an inspection. If a seller who doesn’t have an in-depth history of their home is hoping to sell for top dollar, a pre-inspection can help identify defects (or lack thereof) before choosing a listing price and going on the market. Sellers can then better avoid surprises and costly concessions further down the line. The second scenario in which a seller might consider a pre-inspection is the opposite side of the coin. If a seller has taken exceptionally good care of their home and knows everything is in working order, a pre-inspection report from a licensed professional can be a great selling point to include on a listing. Buyers will see the spotless inspection report upfront, and take the proven condition of the property into account when writing their offer. A steller pre-inspection can help sellers sell with more favorable terms and for a higher price. Regardless of why a seller has chosen to get a pre-inspection, it’s never a bad thing to receive as a buyer. A pre-inspection allows buyers to see what they’re getting into early on. If the report was written by a home inspector the buyer trusts, they could consider saving the cost of buying their own home inspection. If a buyer still prefers to hire their own inspector, the pre-inspection report can guide the second inspection to see if defects have gotten better or worse. Does A Home Inspection Uncover All Current and Future Issues? Unfortunately, and hopefully not surprisingly, no. A home inspection will not reveal every issue that exists or could exist in the future. Because an inspector can only observe conditions on the date of the inspection, and the inspection is required to be visual, there is no guarantee that every defect will be uncovered. Owning real property will always come with risks; there’s no way around it. Home inspections can be immensely beneficial, but homeowners should always be prepared for both routine and unexpected maintenance and upkeep at the start of their ownership and in the future.
2023 Real Estate Year In Review: Summit County Sales Statistics & The Market Ahead
The 2023 real estate market statistics for the Summit Area are here, and they have a lot to share about why residential sales prices haven't dropped in the Colorado mountains, even though the number of overall sales is down from pandemic era highs. This year, I'll be dissecting the data even more in depth than usual to see how type of property, location, and age of property all affect sales price. There's a lot of graphs to follow, but bear with me to the end, where I'll break down what this all means for both buyers and sellers heading in to the 2024 market. We're going to look at the Summit residential market divvied up into ten catagories - Single Family Homes or Condos (including townhomes and duplexes) - for each of our five main towns. As mentioned, this year, we're also taking a look at average sales price based on age of the property. For catagories in our market with a significant amount of new construction, you'll find additional break downs to compare properties built from 2018-2023 with properties built in 2017 and prior. I've highlighted some of the most interesting statistical tidbits as we go along, and again, end with an overall analysis. Let's get into it! The Breck single family home market is the only place where newer construction prices fell from 2022 to 2023. Perhaps the cooling cost of building materials has allowed developers more flexibility on price? That being said, the prices and increase in number of new homes sales in Breck were still strong enough to bolster the whole catagory - overall average sales price is still up 1% year over year. In 2023, new construction single family homes in Silverthorne had by far the highest sold price to list price ratio at 104%. No other area of the Summit market even cracked 100%. The trend towards mountain modern subdivisions like Angler Mountain Ranch and Summit Sky Ranch clearly has legs. At 11%, single family homes in Frisco saw the biggest jump in average sales price of any of our 10 catagories. In my opinion, this is probably due to Frisco's perennial appeal to both full-time and part-time residents. While Keystone houses saw a big, 33% jump in number of homes sold between 2022 and 2023, they also saw the lowest sold price to list price ratio in any catagory. At only 95%, it's apparent that sellers in Keystone had more of a tendancy to overvalue their property when listing. Is this because of a disconnect between buyers and sellers on the added value that comes (or doesn't come) with the ability to short-term rent? I'd posit that probably has something to do with it - especially in the 2.5M price range. Silverthorne condo sales, when broken down by year built, appear at first glance to be a real, wild ride. With a nearly 60% difference in average sales price between condos built 2018-2023 and 2017-prior, you know this is one area where the stats aren't telling the full story. Anyone who has visited Silverthorne recently knows that the town is undergoing a major transformation with new, high end condo and townhome buildings lining a revitalized downtown. All of the Silverthorne new construction sales last year were located in this hub. In contrast, the vast majority of Silverthorne condos built prior to 2018 that sold in 2023 are located in the Wildernest subdivision. The biggest difference between downtown Silverthorne and Wildernest? Downtown is governed by the Town of Silverthorne and offers short-term rental permits. Wildernest is a part of unincorporated Summit County and is subject to a very strict county rental ordinance. Wildernest has also been hit with a rezoned wildfire district that disproportionately affected condo insurance policy rates. Impressive stats coming out of Dillon this year. This area's blend of year-round neighborhoods and short-term rental friendly zones made for a healthy housing market, with improvements accross all statistical genres. At only 22, Dillon condos had the lowest average days on market of anywhere in Summit. I thought property value was supposed to drop last year. So why didn't it? 2023 sales activity confirms that our market has been brought back to earth, and sales patterns are falling back into a pre-pandemic groove. Yes, the overall residential market saw it's first depreciation year since 2013 at a little under -1%. However, if we look at market updates throughout the year, we'll see that average sales price was down over -8% April through June (with double digit depreciation in some areas like Breckenridge and Silverthorne), average sales price by end of Summer crept up to -5%, and average sales price after our traditionally busiest closing months of September and October was up to -3%. Then, a strong final quarter filled with Buyers eager to get into a property before ski season and new construction closings pushed our average residential sales price to $1,314,947; only down -0.7% from 2022. Ultimately, inventory - while up in comparison to the pandemic era market - was still not high enough throughout the year to meet Buyer demand. Therefore, prices stayed high. So what does this mean for Sellers? The summer selling season is back in a big way. You can once again expect the summer months to have the highest inventory and the highest amount of Buyer interest. I predict that 2024's first forecast interest rate drops will align with the late summer, which will also amplify this trend. Since properties are sitting on the market for longer, you will face more competition when you list. Pricing your home right will be crucial, and pricing 'to sell' is still working to gain multiple offers and bidding wars. I am confident that every type of property is able to garner that type of attention if you are open-minded with your listing price and willing to look through your neighborhood's sales stats in depth. Alternatively, you might consider avoiding Summer's peak inventory months by listing in the spring or the fall if you have less wiggle room on sales price. Full renovations will continue to pay off in 2024, as we've seen in the 2023 data that the average sales price for newer construction is over 25% higher than resale property. Renovation projects aren't always easy to manage, but you may decide that the significant dollar gains on your sale will be worth it. Because average sales price remains so high, the most important thing to keep in mind as a seller in 2024 is the big picture. The equity you, along with most Americans, have in your property is still at an all time high. Looking at the overall return on your Summit investment should help you navigate any sticky details or compromises that come up in your real estate transaction. So what does this mean for Buyers? As a potential Buyer in 2024 , understanding what Sellers are going through above, will be indispensable to negotiating great prices and terms. As mentioned, mortgage interest rates are predicted to decline throughout the year. Lower interest rates will mean a larger Buyer pool and more competition, but don't let that scare you. Acting when your purchasing power is highest will benefit you more in the long run than avoiding competing offers in the now. If your primary real estate goal is to find 'a deal', I have two suggestions. The first is to consider starting your property seach now, or waiting until after next Sept/Oct. As we learned from the 2023 sales data, average sales price was significantly lower in the winter and spring, but steadily jumped through the summer and the autumn until it caught up with last year's peak prices. By avoiding the summer selling season, you may capitalize on Seller uncertainty during slower times and negotiate a lower price. The second is to avoid newer construction and tackle that remodel yourself! Investing in sweat equity has always had a solid return in the Summit Area, but that's true now more than ever with properties of a certain age. While we ran numbers throughout this blog post pre and post 2018, I'd argue that the highest renovation returns will be found on property built before 2000 that hasn't been updated. Most Buyers we work with find property up to 25 years old outdated but liveable, and therefore allocate a higher market value to them. Older 'gut jobs', on the other hand, are prime opportunities to build instant equity. For the record, this is not a recommendation to look for a 'flip'. The Summit market has never been particularly amenable to investment flipping. Rather, this is a recommendation we often give to our clients who want to keep their purchase price low and secure favorable contract terms. Finally, once you find a property of interest, we always look through that property's history via tax records and historical MLS data. If a Seller is stuck on a high sales price, have your Realtor look up when they purchased the property and roughly calculate how much equity they may or may not have. If the Seller purchased within the last year or so, they won't have the equity to justify a lower price. You may have to pivot from seeking a price reduction and look for different contract terms that could benefit you. If the Seller purchased in 2020 or earlier, this is an excellent opportunity to remind the Seller of their big picture, and encourage them to work with you on a mutually beneficial transaction. Looking to the market ahead No matter if you're buying or selling, there will be plenty of complexities to navigate in the 2024 Summit Area real estate market. Working with true local experts who are dedicated to client education is your best strategy to coming out ahead! We look forward to seeing what the new year will bring, and to hearing from you about how The Mountain Real Estate Team can support your goals in 2024.
Summit County Residential Sales Heading Into Ski Season
Year to date, residential sales in Summit County are down close to 1%, with the average sold price down about 3%. Keep in mind however, that the average sold price was down over 10% in some areas in July. A busy late summer and early fall helped sales prices gain significant ground! The list price to sales price precentage is still at 98%, which has been the case since last December. Interestingly, townhomes and duplexes hold the highest list price to sales price precentage this year, with these types of properties selling closer to 99% of list price. Average days on market has also stablized, with this stat hovering in the 40s since winter. November is off to a solid start in closings, new under contract activity, and new listings. As of today, Summit County has seen 69 closings and 49 newly pending this November. (While not included in the above graphics, Park County has also seen a strong November with 14 closings and 11 newly pending so far this month.) The average sales price for the first 18 days of this month is $1.556M, which to us indicates the year is winding down with a strong surge in our residential market.
Thank You For Naming Us The Best Real Estate Agents In Summit!
We are positively honored and thrilled to announce that The Mountain Real Estate Team has won the 2023 'Best of Summit' for Best Real Estate Agent/Team! Over 12,000 people cast 90,000 votes in the annual 'Best of Summit' contest, brought to us by the Summit Daily News. Our team garnered the most votes and was awarded first place. Our appreciation for all of you who took the time to vote is beyond words, and we are honored to be recognized alongside so many of our dedicated peers. We are immeasurably thankful for the trust our clients place in us, and it's a privilege to have worked with so many of you in our community. Real Estate can be a complex business, but our clients are the heart of what we do. Kelli, Steve and I look forward to serving our hometown in the same meaningful way in all the years to come. Thanks again to you all for this incredible recognition!
Colorado Ski Season Opening Dates: Lifts Are Officially Spinning Here In Summit!
With over a foot of fresh powder, Summit County's Arapahoe Basin Ski Area opened this morning to officially kick off the 2023/24 ski and ride season here in Colorado! We certainly woke up to winter this weekend, with a massive storm dropping over 20" of snow on the High Country. The freezing temps and natural base mean that the race to open is on for the rest of Colorado's resorts, with Keystone and Loveland expected to open for the season in the next couple of days. Bookmark this page for updated opening day projections for the rest of Colorado's ski areas. We're looking forward to seeing you on the slopes soon! Arapahoe Basin: Open! Keystone Ski Resort: November 1st Loveland Ski Area: ASAP Winter Park Resort: ASAP Breckenridge Ski Resort: November 10th Vail Ski Resort: November 10th Copper Mountain: November 13th Eldora: November 17th Purgatory Resort: November 18th Steamboat Resort: November 22nd Beaver Creek Resort: November 22nd Crested Butte Mountain Resort: November 22nd Aspen Mountain: November 23rd Snowmass: November 23rd Telluride Ski Resort: November 23rd Powderhorn Mountain Resort: November 24th Silverton Mountain: November 25th Howelson Hill Ski Area: November 25th Echo Mountain: December 1st Ski Cooper: December 6th Ski Granby Ranch: December 8th Sunlight Mountain Resort: December 8th Aspen Highlands Ski Area: December 9th Buttermilk: December 9th Kendall Mountain: December 15th Monarch Mountain: TBD Likely Late November Wolf Creek Ski Area: TBD Likely Late November Hesperus Ski Area: TBD Likely Mid December
Park County Market Update
Sunset overlooking the South Platte River & Buffalo Peaks One of the strongest real estate markets, and some of the most desireable property, in the Summit Area can be found just south of Breckenridge, in Park County, CO. Throughout Park County, you'll find increasing home values that still manage to be attainable, which is a rare thing to come across in 2023. For those who aren't familiar with Summit's neighboring county, Park is home to rugged mountain views, vast prairies, gold medal fly-fishing waters, and the historic town of South Park City (yes, as in that South Park). Here, one can still find riverfront homesteads, remote log cabins, private fishing rights, forested acreage, boundless ranchland, and more for sale. Small towns like Fairplay and Alma keep the western spirit alive and make for a refreshing change of pace, while still boasting amazing proximity to the ski resorts and recreational opportunities across the county line in Summit. In addition to the wide open spaces, the average sales prices in Park County tend to be very attractive. Year to date, the average sales price in Park County for a single family home is $677,577. In contrast, the average sales price over the same time period for a single family home in Summit County is $2,114,488. That's quite a difference! Park County is also one of the few regions in our market where home values are still increasing. There are a few factors behind that. Markets around the country have shown that demand in areas with below-average price points is not slowing down. Buyers acknowledge properties in these price ranges have more room for growth and are rewarding sellers accordingly. Short-term rental ability is also at play here. I've been talking a lot recently about how many sellers (and listing agents) in Summit have begun to overvalue the ability to short-term rent a property. Even though this is a big (or essential) asset to many Buyers, there comes a point where the market can no longer justify massive jumps in home value for the privilege. The gap between the cost of owning a property and the amount a homeowner can offset by renting becomes more of an overwhelming chasm. That trend hasn't, however, been the case in Park County. The average sales price, paired with an increasing demand for vacation rentals away from the 'hustle and bustle', allows Park County homeowners to offset their expenses with rental income in a more substantial way. While the towns of Fairplay and Alma have both instituted short-term rental caps in the last two years, the County has not. Vacation rental licenses are readily available in many popular unincorporated neighborhoods such as Placer Valley, Glacier Ridge, Valley of the Sun, and Warm Springs Ranch. It also doesn't hurt that Park has seen an influx of new services, amenities, and infrastructure in the past few years. Many of our friends and clients call Park County home, and it's one of our team's favorite places to work in. If you're looking to purchase a mountain property, but want something a little different from ski resort living, or if you're looking to sell your Park County home, and want to ensure your property is priced and marketed right, give us a call! Golden hour on the shores of Eleven Mile Reservoir in Park County
Best Aspen Fall Color Hikes in Summit County
As the first dusting of snow falls on Peak 10, and the Oktoberfest kegs are cracked, I think it's safe to say Autumn in the High Country is finally here! Read on to discover the best hiking trails in Summit for aspen leaf peeping and fall colors. Everyone who knows me, knows how much I love the Fall in my hometown of Breckenridge. The alchemy of golden aspens, rusting mountain peaks, and the crisp, Colorado sunshine is an unparalleled brew. One of the best ways to experience Summit County's finest, yet most fleeting, season is on foot. So today, I'm sharing my favorite hiking trails in Summit County to see our spectacular fall color up close. I've included trails for all levels of difficulty, so immerse yourself in the colors, and enjoy one of the most stunning times of the year! Lily Pad Lake Trail: 3.5 miles Frisco, CO Early evening light on the Lily Pad Lake Trail with views towards Baldy Lily Pad Lake is one of the most popular hikes in all of Summit County, but Autumn is when this trail really comes to life. Ascend steeply through some of the largest aspen groves in the area, before you enter the Eagle's Nest Wilderness and the golden canopy gives way to rustling meadows and sweeping views of Lake Dillon. Tip: make sure you start from the Meadow Creek trailhead to maximize your leaf peeping! Alternative routes may be shorter, but you'll miss the best foliage and views. Lily Pad Lake via Meadow Creek Trail Rock Creek Trail: 4.3 miles Silverthorne, CO Aspen leaves frame the first dusting of snow on Mount Valhalla along the Rock Creek Trail Rock Creek is an enchanting, quiet corner of Summit, tucked away in the unruly Gore Range. This trail was one of the first 'secret spots' I came across in Colorado, and I still visit every Fall. The drive up to the trailhead is actually one of the most colorful parts of the journey. Rock Creek Trail climbs gently up through a mixed conifer forest and passes an intersection with the much busier Gore Range Trail. After the trail junction, you'll meander alongside a large alpine meadow known to be home to many Colorado song birds, before reaching a beautiful aspen grove. You'll climb beside these aspen until you arrive at the remains of the Boss Mine. Fiery aspens cascade through the old mine tailings and perfectly frame the rugged ridgelines surrounding the basin. Tip: for hikers experienced in Class 3 climbing and route-finding, Boss Mine is the start of the 13er, Keller Mountain's, standard route. This 15 mile rt climb makes for a much more aggressive day that will require more time and preparation, but will reward you with unmatched views of one of the most untouched mountain ranges in the Rockies. Boss Mine via Rock Creek Trail Keller Mountain via Rock Creek Trail Eaglesmere Lakes: 7.4 miles Silverthorne, CO Surrounded by golden leaves and sunlight in the Eagles Nest Wilderness For those looking to be completely immersed in dense, lofty aspen groves, Eaglesmere Lakes is the hike for you. Located in the far northwestern reaches of Summit County, the Eaglesmere trailhead sits at a lower elevation, which allows the aspen here to truly soar. The first two miles of this hike climb through one of the most majestic groves in the county. Wind through massive tree trunks and a lush forest floor before reaching sweeping yellow vistas of the Eagle's Nest and Cataract Falls. While the foliage is mostly found in the first 2.5 miles of the trail, the subalpine Eaglesmere Lake is a lovely end destination worth the extra mileage. Tip: this hike is entirely within a designated wilderness area; meaning that the trail is minimally maintained. You'll likely encounter downed trees and overgrown brush so wear long pants! Eaglesmere Lake Trail X10U8 to Minnie Mine: 1.5+ miles Breckenridge, CO The historic X10U8 mine in Breckenridge's Golden Horseshoe In 1859, prospectors discovered gold along the banks of Clear Creek, and the Colorado gold rush was born. In August of that same year, the fortune seekers arrived in what is now known as Breckenridge, and struck it rich in the hills along French Creek. The majority of gold mined in Breckenridge, including Tom's Baby, was unearthed from this basin, and the area became known as the Golden Horseshoe. How fitting that the same basin is now home to Breckenridge's best golden aspens! There are several trails you can take to travel past the historic X10U8 and Minnie mines in a loop. I usually head in a counter-clockwise direction so I can enjoy the most views of the Breckenridge Ski Resort in the distance. Depending on which trails you take, you'll pass by a rich variety of historical sites, including everything from dredge boats, to ghost towns, and even the ruins of a 1970's hippie commune! This area is also excellent for mountain biking, so check out the MTB Project for trail suggestions if you're heading out on your bike. Tip: the Town of Breckenridge open space trail system, which includes the Golden Horseshoe, connects countless trails to this one - making it very easy to extend your mileage and difficult to get lost. Track yourself on a GPS-enabled app like AllTrails or Strava to find other trails to explore that will still loop you back to your trailhead. X10U8 to Minnie Mine Loop Frisco Peninsula: 3+ miles Frisco, CO Layers of leaves on the Frisco Peninsula The Peninsula Recreation Area in Frisco is another fantastic network of trails that offers something for everyone. The peninsula itself does not have an abundence of aspen, but this is where you'll find some of the best 360 degree views of the blazing yellow and orange hillsides of Summit. Take a long stroll on the Lakeshore Perimeter Loop or a quick climb up Crown Point to take in the dazzling vistas of Buffalo Mountain, Greys and Torreys, Peaks One and Two, and more. The Peninsula Recreation Area is another popular area for mountain bikers, and features a couple directional downhill trails, as well as two jump lines. There's also two disc golf courses and a skatepark for those interested in more than just hiking. Tip: there is a fee for parking at the Peninsula day-use area managed by the National Forest, but parking is free at the upper parking lots, next to the baseball fields, and at the Frisco Lodge. Lakeshore Perimeter Loop Crown Point Loop Lower Cataract Lake: 2.3 miles Silverthorne, CO A riot of colors surrounds Lower Cataract Lake For Colorado autumns, quaking aspen will forever be the star of the show. There's so much more to the fall colors in the Rockies though! There's no better place than Cataract Lake to begin noticing the wide array of foliage that lights up the mountains every September. From Rocky Mountain maple, chokecherries and water birch, to woods rose, wild gooseberry, and cinquefoil; Cataract Lake is a veritable Garden of Eden. The trail that rings the lake is thin and rocky in places, but there is no elevation gain so I consider it an easy hike. The views of Cataract Falls and the surrounding Gore Range are ones you won't forget. For those who want to enjoy the outdoors without a trek, there is a stunning picnic area only .25 miles from the trailhead parking. Tip: for a completely different experience, try paddleboarding or kayaking on Cataract Lake! The .25 mile walk to the picnic area shore launch is doable for all abilities. Check out Blue Valley Sports for some of the best SUP rental pricing in the area. Lower Cataract Lake Trail Mesa Cortina: 2 miles Silverthorne, CO Amber glow along the Mesa Cortina trail in Silverthorne The Eagle's Nest Wilderness is exceptionally popular with hikers year-round, but Mesa Cortina is wildly overlooked. Where you might find congested trails and overflow parking at other trailheads, you'll find peace and solitude here. The first mile of Mesa Cortina is the best section for fall color; you'll wind along the edges of Buffalo Mountain's apron of aspen and traverse three meadows with golden views of the Williams Fork, Lake Dillon and the Continental Divide. I like to hike this mile out-and-back in the evening to catch the sunset light. If you'd like make a full day out of it however, the Mesa Cortina trail continues for another 1.5 miles before intersecting with several other popular routes. Tip: my recommendation is to take Mesa Cortina to South Willow Creek Falls - a lovely, multi-tiered cascade nestled in the impressive granite wall between Buffalo Mountain and Red Peak. Mesa Cortina to South Willow Creek Falls Towering aspens against blue skies make for one of the most breathtaking sites in Colorado. When enjoying Colorado's great outdoors, always follow the principles of Leave No Trace and be prepared. Our wildlife, our mountains, and our community count on you to help our special corner of this planet thrive for all generations to come.
We've Been Nominated For 'Best of Summit' | Vote For Steve & Kelli
We are thrilled to share that both Steve Olds and Kelli Bennett of the Mountain Real Estate Team have been nominated for 'Best Realtor' in the 2023 Best of Summit. If you haven't voted yet, you can follow the instructions below to vote for us, and all of your other favorite local Summit businesses by August 18th. To vote, follow the link below to the Best of Summit homepage - brought to you by the Summit Daily News. Select the "Home" section, then scroll down to the catagory "Real Estate Agent" Vote for Steve or Kelli Enter your email address to login/register. Once finished registering, hit the submit button, and your vote will be tallied! We always appreciate your ongoing support, and we are proud to have Kelli and Steve recognized as two of the best local Realtors in Summit County. Cast Your Vote Here!
Architect Meet & Greet in Breckenridge: Inspiration To Build Your Dream Home In The Mountains
This Wednesday, August 9th, Kelli and I will be hosting a meet & greet with the internationally renowned markharris Architects - the firm behind the conceptual home design at 5810 Barton Road. We're excited to have Mark himself available to answer questions and tour the building sites. 5810 Barton Road is one of the most unique parcels available in Breckenridge. With 4.59 acres and Barton Creek running through the heart of the property, this parcel feels like a solitary slice of wilderness instead of a Peak 7 landscape only 3.2 miles to downtown Breckenridge. Come stroll the trail along Barton Creek and see Mark's schematic residential design, which arcs over the creek's cascade, come to life. Learn more about what it takes to build your dream home in the mountains, and be inspired by an architectural firm that thinks outside of the box. Our architect meet & greet is open to the public, so come on by between 11:30am and 1:00pm, or ask your Realtor to stop by and enter our Broker raffle! If you're interested in building a legacy Breckenridge estate, then don't miss this incredible opportunity to understand the full potential of this spectacular property. Kelli and I look forward to seeing you this Wednesday!
What We've Learned As Our Peak Selling Season Approaches
As the peak selling season in the Summit Area approaches, what insights have we learned about the 2023 Real Estate market? Here are a few numbers from the last week with a lot to say. 32: The number of NUCs (new under contracts) last week. 66: Of the 32 properties under contract last week, 66% found a buyer without a price reduction. 34: Of the 32 properties under contract last week, 34% have had a price reduction. 43: For the 66% of properties that found a buyer, went under contract, and did not have a price reduction, the average days on the market was 43. 178: Of the 34% of properties that found a buyer, went under contract, and had one or more price reductions, the average days on the market was 178. So what do these numbers tell us about selling in the 2023 market? They tell us that buyers are still lining up for the properties that are priced right, and they tell us about 34% of sellers are still listing too high - hoping to capture the same type of year-over-year appreciation as the last couple of years, and not investing in the type of marketing plan that leads to a successful sale. The past week tells us that a seller or an agent who says 'oh, we can reduce the price later' is looking at approximately 178 days on the market. Take a look at Summit County's monthly sales distribution by sides closed. So what does this mean for Sellers? We're approaching our peak selling season, so it's more important than ever to work with a Summit Area expert who can align your price for a successful sale. Market positioning is essential, and you should find an agent who can be honest with you, and can explain their position using data when they disagree with you. If you price your property appropriately, then you can estimate going under contract in around 48 days, which still falls in our peak selling months. The 178 days you can expect to be on the market if you want to 'test the waters' with a listing price higher than market value, will likely take you into the slower winter months. Our team is here to help you make the most of the remaining go-time. Let's make your selling goals a reality before the summer season wraps up! So what does this mean for Buyers? One of the best strategies for Buyers in 2023 remains putting in fair market value offers on overpriced properties before the price adjustment. While the recent rate hikes might affect the buyer pool a little bit, you can still expect more competition from other buyers over limited inventory for the next three months. If you're interested in a property that's priced right, then be prepared to submit a strong offer. If you're interested in a property you think is overpriced, then don't just give up on it. Get in touch with us to write an offer below listing price, and present the seller with an out before they hit 178 days on the market! Let's find you your new mountain home before the snow starts to fall. Whether you're looking to sell your mountain property or purchase in Summit, our team is here to help you find the sweet spot and make your goals a reality in the least amount of time. Sign up here to get market trends directly to your inbox, and get in touch anytime!
A Team With Increasing Production In A Shifting Market
Summit views of a recent climb up Keller Mountain in the Eagle's Nest Wilderness Recently, a stat came out in regards to local real estate production that caught our eye. Since Spring of 2022, a variety of factors unique to the Summit Area have caused dramatic shifts to our local market. Because of these rapid and complex transitions, the three top brokerage firms in our Summit MLS have seen an overall downturn in production. Top 3 Local Brokerages - Total Sales Production Year-to-Date 2022 vs 2023 RE/MAX Properties of the Summit: -9% Slifer, Smith & Frampton: -19% Liv Sotheby's Breckenridge: -18% If you've been following our market updates, you, like us, are probably not overly surprised by this statistic. Average sales price and number of sales are down year-over-year, so it only follows that brokerages' production is also less than last year. Naturally, we were happy to see that our RE/MAX office overall has kept production closer in line with last year's historically huge numbers. We then got curious about how exactly our team was faring. Lo and behold, when we added up our transactions, we were extremely proud to discover that our production was not only keeping pace with our production in 2022, but it was actually up - and up significantly! Our Total Sales Production Year-to-Date 2022 vs 2023 The Mountain Real Estate Team: +21% We've spent the past year trying to think progressively to navigate the post-peak market. As I've written many times, we all knew the 2021-2022 market trends were not sustainable. Over the first half of the year, we've found that 2023 requires a mix of adapting new strategies and getting back to the real estate basics. Growing through challenging times is why we founded The Mountain Real Estate Team in the first place. Helping our clients, both new and old, as best we can really is the reason we've kept our mindset forward-thinking. We're thrilled we've been able to help so many buyers and sellers already this year, and we look forward to what the rest of 2023 brings!
A Look Back at The First Month of Summer: Market Update
In the last two weeks of June, our market saw 142 new listings, 72 new pending sales, and 48 closed sales. People are in town, and if the price is right, buyers are buying! Although percent of list to sold price is down year-over-year, the median list price to sales price average over the second half of June was up a full percentage point to 99.3%. Our market is adjusting to the new lay of the land. If you're thinking about buying a mountain property, you have finally regained the flexibility and 'room to breath' that a balanced market provides. Options are back! Selling will require a bit more strategy, marketing, and time than it has over the last three years, but equity remains historically high. If you're thinking about selling, your property may be worth more than you think it is. No matter what your real estate goals are, the economic state of 2023 can be tricky to navigate. On top of that, the Summit Area remains its own microclimate; more insulated from external economic forces than most real estate markets. We always talk about the importance of working with a true local expert, and this is why. We are confident our expertise will get our clients the results they deserve, so keep our contact info handy the next time a question about the Summit Area market comes up!
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