Condo sales fueling Aspen, Snowmass real estate market

The combined Aspen and Snowmass Village real estate market saw the best third quarter in years with unit sales up 55 percent over the third quarter in 2012 and up 41 percent in dollar sales, according to The Estin Report. Combined sales year-to-date over the same time last year are up 37 percent in terms of units and up 3 percent in dollars to $741 million from $721 million last year, The Estin Report said.

Sales momentum increased significantly over the past summer.

The Aspen-Snowmass Village market has been trending upward in both single-family homes and condos this year. A surge in condominium sales has ignited the combined market: Condo unit sales in the third quarter (76) are up 65 percent over the same quarter in 2012 (46); condo dollar sales in the third quarter ($109 million) are up 80 percent over third quarter 2012 ($60 million).

In downtown Aspen, condo dollar sales are the strongest of the past six years, as median prices have declined 19 percent year-to-date this year. In Snowmass Village, condo sales are up 460 percent in the third quarter (25) over the same quarter last year (5). Viceroy Condo Hotel units are driving sales, creating a positive ripple effect for the entire Snowmass condo market.

“Increased condo activity is likely due to a number of factors: the release of pent-up demand as the condo market had virtually shut down for the past two to four years; buyers’ recognition that prices are not likely to fall further and that one should purchase now; first-time Aspen buyer interest; and an overall improved lending environment,” wrote Tim Estin, broker associate at Aspen Snowmass Sotheby’s and author of The Estin Report. 

For Aspen single-family homes, unit sales were up 11 percent: 30 homes sold in the third quarter over 27 the same quarter the year before; dollar sales were down 5 percent, to $145 million in the third quarter versus $153 million in the same quarter the year before. Year-to-date unit sales were up 4 percent: 75 homes this year versus the same period in 2012; dollar sales were down 16 percent from $355 million in 2013 versus $422 million in 2012.

Listing inventory for the combined Aspen-Snowmass Village market decreased 14 percent in the third quarter and is down 6 percent year to date compared to the same periods last year. Vacant lot unit sales for the combined Aspen-Snowmass Village market in the third quarter surged 200 percent over the same quarter in 2012 with 12 this past quarter versus four during the same quarter last year, but remain even at 24 lot sales each year to date.

“Anecdotal evidence suggests building activity is increasing, available contractors are harder to find, and construction costs are on the rise,” Estin said. “There is a lack of new-built units, and developer/builders are scrambling to locate quality lots at still-recession period prices ... if available.”

Source: http://www.aspenbusinessjournal.com/article.php?id=9816
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