Vail Real Estate Update

Isn’t is nice when we can all agree on something? Suffice it safe to say that 2011 went out with a whimper in the Vail real estate market, especially for the 1254 active sellers currently trying to find buyers for their properties. In total, 886 residential properties (listed in the MLS) sold in the Vail Valley in 2011. This is almost identi-

cal to the number of 2010 sales. The difference is that prices are down another 15% or more from 2010 and are likely to go down further.....there's alot more to this story.

Eagle-Vail Family Home Listed BELOW Appraised Value!

108 Trout Pond Lane in Eagle-Vail

List Price is BELOW Last Appraised Value!    (9/30/11 appraisal)

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Enjoy this wonderful family home in an excellent location right next to Trout Pond Park at the end of a quiet cul-de-sac. With lots of living space featuring 4 bedrooms, 3.5 baths and a large sunny deck, there is plenty of room to entertain. Kids will love the large recreation room and living next to a park and playground; there's also a 2-car garage. It's only minutes to the new Eagle-Vail pool, amenities and hiking trails. Avid skiers can ski home from Beaver Creek!

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Great family home with lots of space for the family and friends and right next to the park.  Click this link for more information:  http://www.investinvail.net/listing/mlsid/394/propertyid/913037/

    

Residential Sales in Eagle County - November 2011

# of Active Listings (as of 12/4/11): 1183

Total Residential Sales Last Month (Nov): 83

In Vail Village and Lionshead, there are 219 properties listed with just 29 sales in the last 6 months producing a 45+ month inventory of properties in these two areas. SELL NOW or sell for less later.

If you are serious about selling your Vail Valley property and are looking for a serious real estate agent to help, email or call me today and we can discuss your options in today's market.

To search all available properties in the Vail Valley, Beaver Creek and Eagle County, Colorado, please visit my website at: http://www.InvestInVail.net

Investing in Vail Real Estate with Retirement Assets

I am under contract to buy an investment property that may generate an annual current return of 7%.  Are you aware that you can own rental real estate with your retirement funds? If you are of retirement age, take the income, if not, continue to invest.  If you don’t have the stomach to weather a volatile stock market, this may be an excellent option for some of your retirement assets. The structure I am suggesting is not the same as an annuity which could permit use of the property by the owner. This is a straight investment play but focuses on the current yield to the investor.

Vail Real Estate Supply and Demand - SELL NOW!

The price/value equation is the determining factor in whether properties will sell. If buyers do not feel they are getting a bargain, they will move on. Hotel bookings are very strong and up from last year, but the ugly economic paradigm of supply and demand still reigns.  In Vail Village and Lionshead, there are 219 properties listed with just 29 sales in the last 6 months producing a 45+ month inventory of properties in these two areas. SELL NOW or sell for less later.

Buying Rental Real Estate with Retirement Funds

I am under contract to buy an investment property with a partner that may generate an annual current return of 7%.  Are you aware that you can own rental real estate with your retirement funds? I also own 46% of a property with an IRA partner that distributes rental income monthly to my partner as he is over 65. My portion of the income goes into an account that I can invest in whatever I wish (stocks, options, money market, more real estate, etc…).

If you don’t have the stomach to weather a volatile stock market, this may be an excellent option for some of your retirement assets. The structure I am suggesting is not the same as an annuity which could permit use of the property by the owner. This is a straight investment play but focuses on the current yield to the investor. Warren Buffet says: “Be Greedy when others are Fearful and Be Fearful when others are Greedy.”

To talk more about options that may work for you with investing in real estate in the Vail Valley, Beaver Creek and Eagle County, Colorado email me at Sondra@InvestInVail.com (please include your contact info).  I will visit with you about current real estate investment opportunities that may fit your needs.

To search all available properties for sale in the Vail Valley, go to www.InvestInVail.net. 

Market Update: Sell NOW or Sell for Less Later

Inventory has come down as predicted in the Vail Valley as many rental properties are now off the market for the ski season. Holiday buyers tend to be the most motivated of any buyers, so expect some movement over the holidays this year as well-heeled investors (the 1%) have gotten over the shock of the last year.

The price/value equation is the determining factor in whether properties are selling or not. If the ever savvy buyer does not feel that they are getting a bargain, they just will not buy. I expect some more turbulence for the local real estate markets coming into the 1st quarter of 2012. While hotel bookings are very strong and better than last year, the ugly economic paradigm of supply and demand still reigns.

In Vail Village and Lionshead, there are currently 219 properties for sale with just 29 sales in the last 6 months. You can do the math, but I did it for you and the quotient reads that we have a 45+ month inventory of properties in these two areas. So, sell now or sell for less later.

If you are serious about selling your Vail Valley property and are looking for a serious real estate agent to help, email me today with your contact info and I will call you to discuss your options in today's market. -Sondra Slappey  sondra@investinvail.com

To search all available properties in the Vail Valley, Beaver Creek and Eagle County, Colorado, please visit my website at: www.InvestInVail.net

Vail Real Estate and Foreclosures

The Thursday Vail Daily is where we see which Vail homeowners are quite delinquent in paying their mortgages. I read the Thursday paper every week to get a sense of our real estate environment as it relates to the number of homes in foreclosure and their location and potential re marketed listing price.


 Today there were a few more homes in the paper in areas where we don't usually see delinquencies. Arrowhead was included as was East Vail. Again, the majority of the pending foreclosures are homes in the Eagle and Gypsum areas with loans attached that originated between 2005 and 2007.

Sunridge always makes an appearance as there are so man units in the two complexes. I will write about Sunridge as a barometer to the market again shortly.

Expect prices to decline through the winter and even more so for luxury homes.

Getting Excited about Vail Real Estate

Steals and Deals! Check out our VAIL / BEAVER CREEK HOT LIST which features only properties that I would sell to my mother.

I am adding a Sunridge property to the list because:
     1. It is a short sale so who knows how low it could be obtained.
     2. You need not lift a finger as the remodel is IMMACULATE.
     3. This will always be a wonderful rental property.
     4. This is so nice you could live in it and Like it!
     5. As always, this is right across from the Beaver Creek parking lots.

 
http://www.investinvail.com/hot_list.php

Call me for the scoop!

Vail Valley Real Estate Statistics October 2011

Click on Graph to Open a Larger View

Look for this to be published every month to out blog. You can also sign up for our newsletter to receive lots of interesting information about the Vail Valley Real Estate Market at www.investinvail.net

Commentary on Vail Real Estate September Statistics

The Vail valley real estate market saw a nice uptick in business in the later part of the summer and into the fall with 89 closings valley wide in September. As expected during a recession or depression or whatever you want to call this cycle, the majority of activity continues to be in the under $500,000 price range. Because there are more, lower priced listings in the Eagle and Gypsum areas, those markets continue to see somewhat brisk sales activity. Short sales and foreclosures still dominate the down valley markets and will continue to do so for quite some time. Luxury buyers are striking bargains in the resort areas as most sellers are highly motivated to make deals. Regardless of whether or not we are at the bottom, it is still a good time to buy in this valley. Reservations are looking very strong for the ski season which is a good indicator that Vail is likely to have a strong winter season.

September Vail Real Estate Statistics

Total Residential Sales in September: 89					Number of Active Listings: 1302
Area Highlights			# transactions		avg. sales price		$Avg price/sf
East Vail			3		709,500		$473
Vail Village			1		950,000		$1051
Lionshead *			2		3,077,500		$1370
W. Vail N&S			4		597,250		$297
Eagle Vail			5		444,430		$214
Avon			6		361500		$269
Beaver Creek			6		1,021,667		$550
Arrowhead			2		3,962,500		$581
Singletree			3		1,024,000		$271
Homestead			4		544,050		$187
Eagle Ranch			6		479,583		$153
Eagle			7		281,768		$147
Gypsum			14		223,064		$101
* both sales at the Ritz Carlton Residences

Ritz Carlton Vail - Something to Consider

Reasons why I think this project offers value in the Vail Real Estate market:

1. Vail Resorts is offering discounts and tremendous incentives to buyers right now. Previous incentives included lifetime ski passes, social memberships to the Arrabelle Club in Lionshead, Red Sky Ranch Golf memberships, etc....

2. While the present location may be only a "B," the future development of EverVail will turn this into an A++ location.

3. The amenities and service level are unbeatable and meet the discriminating expectations of a true luxury buyer.

4. The potential to generate rental income which may offset fixed expenses such as dues and taxes in substantial.

Vail Foreclosures and Short Sales

The Colorado 30 day delinquency rate on home mortgages is between 2-3%. Across the country, 12.87% of mortgage loans are 30+ days delinquent for a total of 16.3 million households BEHIND ON MORTGAGE PAYMENTS. Florida leads the nation with a 14.4% delinquency rate. Unfortunately, there is a large amount of "Shadow Inventory," which are homes that will hit the market for sale after they go through the foreclosure process and become bank-owned. As far as how this will affect our local Vail Real Estate market, we too will see shadow inventory but most noticeably in the lower price points. Our Vail and Beaver Creek real estate inventory is still very top-heavy which continues to push prices lower and will for some time to come.

Reasons to Buy Vail Real Estate #1 and #2

I just read the most recent Barron's which prompted me to again write about the REASONS TO BUY VAIL real estate. Interest rates are nearly guaranteed to stay low for another 2 years, and 15 year mortgages are available at 3.5%. I just recalculated my monthly house payment and deduced that for an extra $600 per month, we can refi and have our house paid off in 15 years! This is exciting to me as we struggle to find the bright side of lost investments, try to remain calm amid certain political and economic futures and continually digest a skepticism regarding the financial markets. With interest rates this low and expected to fall further, financing an investment property may be easier than ever.

Reason #2 is more subjective but revolves around the expected volatility of housing prices in Vail and Beaver Creek for the next few years. No one knows when we will find the bottom but given the positive demographics for our area and the fact that the first baby boomer just retired, I think the prospect for continued precipitous declines in value is negligible. Certainly real estate values have room to fall further, but echoing the sentiments of dividend-paying stock investors, why not invest in real estate that can generate a positive current return from rental income?

In the words of the famous Warren Buffet, "Be greedy when others are fearful and be fearful when others are greedy."

Buying Resort Real Estate in Vail and Beaver Creek with Retirement Funds

What if you want to invest in real estate in Vail or Beaver Creek but all of your money is in your IRA or 401k rollover account?  Did you know that you can use your retirement funds to buy real estate? Self-directed IRAs are becoming more and more popular with savvy investors. The process is relatively simple and allows you to actually receive the income from rental properties if you are of retirement age. If you are not yet of age to withdraw from your retirement account, you can invest the proceeds any way you see fit in your self-directed account or move those funds back to another investment. The IRS does have strict rules in place regarding the personal use of real estate held in an IRA. If use of a property is paramount in your decision making, then there are other alternatives available for you involving annuities which we can discuss. The benefits of buying rental real estate in your IRA are numerous and include the possibility of predictable monthly cash flow (with long-term rentals), price appreciation and less volatility than the stock market. You can also form an investment partnership with others and combine your IRA investment if you want to buy but either wants to limit your exposure or do not have enough money of your own to buy the right property. I have recommendations for selecting an appropriate rental property for this type of investment as well as suggestions for administrators of self-directed retirement accounts.