As
Appeared in Mountain Business Journal
May 25-31, 2005
What’s
hot, what’s not.
I’d have to say the whole real estate market
is hot! In Aspen, single family homes and lots under
two million have disappeared. The condo market is
strong, including fractional ownership. New construction
close to the Aspen core is the most sought after
market by Buyers. Everyone still likes to be within
the perceived “walking” distance to
dinner.
I
have seen markets similar to this in the late 1970’s,
1980’s and 1990’s. Yes, there does seem
to be a cycle in Aspen for bullish markets. These
hot markets usually last five to six years and we
are in the second year of the up-trending cycle.
Advice
for Sellers.
If you are a Seller you must love this market, but
many Sellers don’t. These Sellers are saying
to themselves “if the market is so hot, why
is my property not selling?”
The
following may give you a clue. You may not be receiving
straight information from your broker. Many brokers
estimate high values on properties just to get the
listings. Even in a Seller’s market, Buyers
tend to shop in the best-priced portion (about 20%)
of the market. Sellers that want to sell need to
select their brokers based on experience and reputation,
not just based on the high estimate prices given.
Advice
for Buyers.
The best advice I have for Buyers is to adapt quickly
to the new higher prices and reduced selection.
Many Buyers shopped endlessly during the slow years
of 2001, 2002 and 2003. They kept waiting for the
perfect deal, but missed the market low. They need
to act now.
Unfortunately,
these Buyers are still waiting for the “low
prices to return.” The inventory has been
reduced by half since August 2003. The prices of
yesterday are gone!
Buyers
need to buy today. Waiting will only limit their
choices and allow the prices to increase even further.
Buyers, do not get caught looking back a year from
now at the opportunities you missed today!
With kindest regards,
I am Sincerely Yours,
Rich Wagar
