From the Vail Daily comes reports of a strengthening Real Estate market in Vail where October posted 2008’s highest overall sales. Great properties in Vail and Beaver Creek helped bump these numbers, particularly the Westin which we’ve covered in past posts here.  Though the economy faces a troubled future investment in the Vail Valley has illustrated the strengths of the market and what a resilient place it is.  The following is an excerpt from the Vail Daily, the full article can be found here.

VAIL VALLEY, Colorado - October was the biggest month so far this year for real estate in Colorado’s Vail Valley, according to figures released Wednesday by the Land Title Guarantee Company.  The boost came from 40 closings worth about $32 million at the recently opened Westin Resort in Avon.  The total dollar volume for October was $167,624,200, which equates to an overall average sales price of $956,373.

There were seven transactions over $4 million. Four of those transactions were at the Willows in Vail.
Rod Slifer, founding partner of Slifer, Smith and Frampton Real Estate, said he felt the majority of the closings came from the Westin Resort and Arrabelle.  “If you pulled out those two, I think the number would be a lot lower,” he said. “If you go back a lot of years, the number of transactions has declined every year, but the dollar amount of the transactions have increased.”  With the economy struggling, Slifer said the report was good news for the Vail Valley.  “I think we all know the economy is slowing down,” he said. “We just need to hang in there.   “Snow would help, too,” he added, “but if we could have numbers like these every month, I’d be a happy man.”

A stunning opportunity to own a residence in the Vail Village awaits at One Willow Bridge, this accomplished collection of Fractional Residences offers guests the Platinum rated luxury they desire.  One Willow Bridge excels through a perfect blend of great customer service, and outstanding accommodation.  Located in the heart of Vail Village the property is easily accessible and just yards away from the scenic Gore Creek, great restaurants like Sweet Basil and Vail mountain.

Fractional Ownership is a great method of reducing the inconvenience and cost of owning a vacation home in Vail or Beaver Creek, through a deeded contract owners receive ownership for a predefined adjustable fraction of the year.  This reduces your cost as you’re not buying the unit in full, have less responsibilities for maintenance, and don’t see the unit go to waste when you’re not using it.

If these images of One Willow Bridge or the concept of Fractional Ownership have caught your attention feel free to contact our knowledgeable, local real estate brokers at 1-877-411-8245.  We’d be more than happy to converse with you and can provide detailed information regarding Real Estate in the  Vail Valley.  Our company’s free lance Real Estate component specializes in matching clients with their dream home, because we’re not committed to pushing or selling any single property we can provide a wide array of options to help you find exactly what you want.

   As the world markets and our country hang in the balance, the Vail Valley real estate market feels relatively paralyzed compared to the previous 2 years of sales.  This trend may continue as uncertainty and inactivity in the market begins to bring home prices back to earth.  The following is an article by David Frey with New West Travel & Outdoors which echoes these sentiments:

TROUBLE IN GLITTER GULCH

Meltdown Hits Snow Country

The world’s woes can seem far away in the Rockies’ playgrounds, but the economic meltdown is having its effects here, too. Foreclosures are rising and the once-meteoric real estate industry is sputtering.

By David Frey, 10-02-08

     While Wall Street was trying to regain its staggering losses and Congress was reaching for a way to prop up the economy’s tumbling dominoes, it was party time at Vail.

     At the foot of Beaver Creek Mountain, 1,000 people came last Friday to nibble caviar and sample from the ice-carved vodka bar at its newest luxury lodge: a half-a-billion-dollar world of ski valets and spa treatments, all in a LEED-certified, eco-friendly setting.

     The world’s woes can seem far away in these playgrounds of the Masters of the Universe. But the economic meltdown is having its effects here, too. Foreclosures are rising. The once-meteoric real estate industry is sputtering.

     “A lot of that was being driven by people’s 401Ks,” says Louis Meyer, CEO of the engineering and surveying firm Schmueser Gordon Meyer, which handles many of the region’s largest projects. He likens the outlook to the days after Black Sunday, when western Colorado’s economy crumbled after Exxon shuttered its oil shale plant in 1982.

     In some respects, the region may weather the turmoil better than others. It’s buffered on one end by an uber-wealthy clientele and on the other by a booming gas industry that has provided jobs and a demand for housing that has buoyed home prices and helped stave off foreclosures.

     “We’re probably the latest to go into the slowdown and we’ll probably be the earliest to come out,” says Jerry Jones, a real estate broker and ski industry consultant.

     In other respects, though, the region’s reliance on real estate and construction make it vulnerable. “We are largely a real estate economy,” says Wally Obermeyer, president of Aspen’s Obermeyer Asset Management Co. “You count the number of Realtors in town, and their income is down significantly.”

     In workaday Garfield County, downhill from Aspen and Vail, building permits by June were down 30 percent. Two large development projects have stalled, blaming lack of financing. Others may be on the horizon.

     The county’s foreclosure rate is nearing its highest peak since the oil shale bust, snagging struggling families and industry professionals. “We’re going to see foreclosures at a record this year,” says mortgage broker Drew Sakson, who watched clients face foreclosures, then found himself staring down the same threat.

     The county has posted 78 foreclosures so far this year, approaching 2007’s year-end total. It’s on pace to hit 107 by year’s end. That would still be less than 2003 and 2005, but it’s among the highest rates since 1987, when, in the shadow of Black Sunday, foreclosures stood at 165. Two years earlier, they had peaked at 244.

     “My feeling is, there’s going to be a lot of blood,” Sakson says. “I mean a lot.”

     Sakson found himself overextended. He missed two mortgage payments on a rental property. “The snowball started rolling on me, too,” he says. He managed to come up with the money, but others haven’t been so lucky, and their numbers are rising.

     “They bought too much house from day one,” says Yanina Toranza-Viera, Valley Housing Partners program director for Garfield Mountain Regional Housing Corp., which counsels prospective homeowners and helps them find affordable housing. Most can’t blame adjustable-rate mortgages, she says. They defaulted even before the rates changed.

     The region’s rocketing real estate market once seemed immune to bursting bubbles, but now, homes aren’t selling and prices are dropping in both tony resort towns and working-class burgs. The listing of available homes in the area “looks like the New York City phone book,” Sakson says.

     Just a year ago, homes were flying off the market, whether they were swanky dream homes in Vail or worker bungalows in towns like Rifle. “In Rifle a year ago, it was extremely difficult to buy a house,” says Toranza-Viera. “It was a seller’s market. There was little stock, a lot of demand. Now it’s changed completely.” In Aspen’s Pitkin County, real estate transactions for the year are down 33 percent. Sales are down 44 percent. On the lower end, many buyers simply can’t afford the inflated prices or can’t qualify for a loan. On the upper end, wealthy buyers may be holding out for bargains.

     “Most of the buyers in that price range are pretty astute,” Obermeyer says. “They’d just as soon wait until the deleveraging has lowered prices.”

     The super high-end may be a different story altogether. “It sells to a unique customer,” said Michael Berry, CEO of the National Ski Areas Association. “Oftentimes they’re far away. The headwinds we see in this country may not be the same as an oligarch from Russia.”

     As for the ski season, industry officials say they’re cautiously optimistic. Forget a plummeting economy. Skiers, it seems, only care about falling snow.

     “One of the last things that people sacrifice is their ski vacation,” says David Perry, vice president of the Aspen Skiing Co. “It’s such a part of people’s souls, and it’s so important to people. An outside analyst may view it as discretionary. Skiers don’t view it as discretionary.”

     The industry is facing some setbacks. Vail is warning investors to expect a dip in profits next year, but that’s due mostly to the sagging real estate market. Montana’s Moonlight Basin has halted construction due to the bankruptcy of Lehman Brothers, a primary backer. Idaho’s Tamarack Resort earlier filed for bankruptcy protection.

     But when it comes to skier numbers, Berry says, good snow trumps bad economies. In the post-9/11 downturn, the stock market tumbled, but ski areas set a record.

     “I think people adjust,” Berry says. “I don’t care whether you’re in the middle-income or upper-income bracket. They give up a couple lattes to make it work.”

     For consecutive years, real estate in the Vail Valley has reached new heights.  Record sales were recorded in Eagle County , and in surrounding areas for both 2006 and 2007.  Today, the uncertainty stemming from our national economy, our mortgage and recent banking crises, and the wave of foreclosures have created a new environment for real estate opportunities here in the Vail Valley.  Cash is king …again, and with the growing number of homes available for purchase coupled with the perception of inactivity in the market relative to back-to-back record sales years, the Vail Valley is ripe for good deals on homes in the upcoming months.

     Some real estate markets can weather any storm.  These markets are on a virtual island, and seemingly impervious to national economic hardships.  Vail, typically, is a good example of one of these markets.  However, while Vail has not seen many foreclosures, it is not completely immune to our current national economic struggles.  As "adom" (actual days on market) for homes increases in conjunction will a growing number of homes available, the patience for Sellers and Developers to move property will be tested.One factor protecting the Vail Valley is its enormous international appeal to foreign vacationers and investors.  Activity from international buyers has picked up dramatically as visitors to our resort seek to take advantage of our weakened dollar.   Although this welcome influx of foreign capital assists greatly in maintaining the vitality of our market, it is not great enough to overcome the other factors’ negative impact.

     Put simply, if you have access to cash, and need a great place to invest it, the timing is good to buy in the Vail Valley.  Whether it is new construction, and the builder needs relief from his construction loan payments on homes that are attracting little interest, or just a motivated Seller because they are feeling the crunch elsewhere during these challenging times, opportunities are knocking here.  The reality is this market will rebound.  History says in no uncertain terms that money in real estate here is money well spent.  If you can own a piece of the Vail Valley for a great price while discovering the priceless memories of spending quality vacation time here, this is a great opportunity to secure a home in the premier Rocky Mountain ski resort. For any questions regarding the content of this article, please feel free to contact me at info@vailbeavercreekluxuryproperties.com ; or call at 970.477.1770. 

     I look forward to hearing from you,

            Adam Schiller

      The fastest growing segment of the travel industry is in fractional ownership sales. The newest properties feature locations, luxury, cost, and convenience that provide the owners with incredible value while guaranteeing their families unforgettable vacation experiences forever. 

     When real estate is the topic, obviously people ask about location, location, and location. In Vail and Beaver Creek specifically, there are literally twelve fractional properties currently available. Due to popularity and demand, there could be as many as sixteen in the next five years. Most of these properties have fabulous locations right in Vail Village where you walk right to the lifts, or actual ski-in/ski-out in Beaver Creek. Owning a whole ownership property with these locations often would require an investment ten times greater.

Photo: Ritz Carlton at Bachelor’s Gulch 

      Typically, most fractional properties feature luxurious high-end finishes throughout the available homes. This is certainly true for the properties offered in the Vail and Beaver Creek areas. It is the quality of these homes coupled with their excellent locations which create significant value for the owner.

Photo: One Willow Bridge Road 

      One of the most compelling reasons to purchase fractional ownership is cost. Although the size of the fraction differs from property to property (usually ranging from 1/4 to 1/13 interest), buyers can own the time they need without completely breaking the bank. For vacationers that are committed to skiing Vail and Beaver Creek, their vacation dollars are channeled into a deeded asset that can be willed or resold. Prices specifically range anywhere from $50,000 to $1.9 million. One large difference for fractional ownership is it equates to a greater asset than timeshare weeks, and have shown potential for good appreciation. A fractional ownership rarely is considered a great “investment,” however, and should not be purchased typically as a property to flip for profit. As with any situation, there are exceptions for truly rare offerings with overwhelming demand.

     Lastly, and perhaps most importantly, fractional ownership offers its owners a convenient, easy, and hassle-free way to vacation. The Homeowner’s Association or maintenance fees for the property are always completely inclusive of all related expenses to home ownership and property management. What does this mean? It means the owners just show up, enjoy the time with their family, and leave with a smile on their face. Most properties offer year-round storage, so they simply leave their skis and equipment behind, and when they return all their skis have been stored, tuned, and waxed for their next round of fun.

     Another major consideration for fractional ownerships is the scheduling process. Every program is a little different so a buyer should always seek representation to make sure they are getting into the right ownership for their use needs. The ability to be flexible with dates, although sometimes impossible with kids’ school schedules, allows any schedule to work better for the owner. There are options for “fixed” week programs also.

     There are many ways to get involved with owning a part of the Vail and Beaver Creek vacation experience.The most popular way today is to secure a fractional ownership which allows folks to own only the time they need while enjoying luxurious vacations every year without the headaches of maintaining a second home.

Adam Schiller

        Originally from Louisville, Kentucky, Adam has lived in the Vail Valley for 13 years. After attending Wittenberg University in Springfield, Ohio, he made his way out to Colorado to discover the adventures of living in the Rocky Mountains. Like most long time residents, Adam soon concluded the outdoor healthy lifestyle here would last him a lifetime.

        That Rocky Mountain living is strongly reinforced with the influence of his wife, Kristin, a registered dietician whom he shares the passion of hiking all the mountains in the area. Upon his arrival in the valley, Adam worked initially in property management. He quickly moved up to Sales Manager of a multi-property management company in Lionshead. With the urging of many of his friends in the area, Adam shifted to Real Estate sales with a high end fractional property near Beaver Creek. For 4 years, Adam enjoyed helping visitors to the valley own a piece of the lifestyle they craved to experience annually with their visits.

        Adam attributes a great deal of his success to his understanding the wants and needs of his clients. By living the lifestyle they wish to provide their families, Adam enthusiastically works to connect his clients with the ownership that makes the best sense so they can enjoy priceless memories with those who count most. In the years to follow, Adam has worked with and successfully delivered every type of real estate imaginable to Buyers who are committed to enjoying this lifestyle while spending their hard earned money wisely. From pre-construction to resale, and from whole ownership to a multitude of different fractional ownership options, Adam is prepared to help you with any of your real estate needs in the Vail Valley. (Sales Director/Broker)

Tommy Hoffman

    Originally from Pittsburgh PA Tommy has been the leading force for four major start ups in his career. His drive to build and try new innovative ways to be better than the rest is still alive and well. Although his background was in the apparel industry he has transformed into one of the ski industries most respected operators. While mastering the ski vacation industry over the last eight years he also kept a sharp eye on the Real Estate industry in the Vail Valley.

    Tommy’s background is also filled with over twenty five years of Real Estate experience. First gaining his Real Estate certifications at the ripe age of 18 years old and never losing the passion to inform and sell. He began using it for family acquisitions and ultimately for his own purchases. He has had a Real Estate career ever since and the last eight years in Vail are no exception. Tommy has recognized the market and the driving factors that are making the future of Vail a distinct luxury place to live, buy and invest. Let him warm you with his smile and fill you with market knowledge that will give you a firm grasp of your Real Estate or Fractional opportunities in the Vail Valley. (Owner/Operator/Managing Broker)

 

Mark Cervantes

    Originally from Houston, Texas, Mark first began visiting the Vail Valley 18 years ago, making the Valley his home 12 years ago. Studying at the University of Texas in Austin, Mark first traveled to Colorado on ski vacations, beginning his love affair for the Rocky Mountains and, in particular, the Vail Valley.

    Mark’s varied background has many facets, including Environmental Legislative Assistant in the Texas Senate, professional whitewater rafting and snowmobile guide, owner of a Concierge Service specializing in meeting the needs of Spanish speaking clients, local community assistance coordinator for the Salvation Army, and lastly Director of Sales and Marketing & General Manager for an Intercontinental Hotels property. Mark’s latest project is serving as the lead coordinator for a 650,000 square foot real estate development here in the Vail Valley, all of these endeavors creating a truly unique and quick thinking individual. Mark brings a wealth of knowledge about the real estate industry and markets, with a true passion for the Vail Valley area. When Mark is not playing in the mountains or on the river, he is involved in our great mountain community in some hands-on way.

    If a true locals perspective and strong knowledge of the market is what you are seeking to help guide you through the process of buying a home in the Rocky Mountains, contact Mark and feel the personable, neighborly attitude he brings to Vail Beaver Creek Luxury Properties.Com (Director of Operations / Sales & Marketing / Broker)