The Wall Street Journal says it may be time to Invest in Vail

Resort real estate is looking ripe for many second home owners, in particular, Vail and Aspen are mentioned in a recent Wall Street journal article.  After two years of steeply declining values, traffic has accelerated and savvy purchasers are scoring great real estate deals in Vail and Beaver Creek. Short sales and foreclosures continue to be a drag on the market but less so in the upscale markets of Vail and Beaver Creek. Local communities such as Singletree and Eagle Ranch are faring the worst as many residents have lost construction-related employment which will likely be slow to recover. Opportunity is knocking in Vail and Beaver Creek Colorado!

National Housing Trends are Improving Slightly - How about Vail's Housing Market?

The Daily Ticker with Aaron Gross and Daniel Gross has some interesting data and projections to share regarding the national housing market. While the inventory of new homes continues to decline and interest rates remain historically very low, the psychology for an immediate recovery is not yet in place.  Lenders continue to require verification of solid income and a good credit score to lend and many buyers are sitting on the sidelines wondering and waiting to see if the housing market has bottomed. Check out this short video:
http://finance.yahoo.com/blogs/daily-ticker/housing-still-groping-bottom-170749370.html?sec=topStories&pos=1&asset=&ccode=



Part of the ongoing trouble is continued high rates of unemployment with minimal job prospects for many folks. Consumer confidence has recently showed some signs of improvement but one has to wonder if that may be a seasonal disorder. If Congress can't come together to raise the debt ceiling level and the US defaults on its debut and loses its AAA credit rating, you can kiss any housing recovery goodbye. This is an opportune time to call your Senators and Congress persons and ask them to move forward, regardless of which side of the aisle you sit.

The Vail valley's real estate market is still struggling. The majority of the homes that are selling are priced below $ 1million. It seems that many buyers who may have previously spent $2-$5 million are settling for a little less and keeping their expenses down. Savvy buyers and investors are here in full force and the volume of transactions is somewhat surprising. It is not surprising that the majority of the inventory is still overpriced. There is a clear differentiation in this market between sellers and optimists.Competing with REOs and short sales is not an easy task.  As many of those properties tend to be in bad shape, traditional sellers have the advantage of presenting a "ready-to buy" product to buyers. As additional  capital for fixing up is not readily available anymore or more correctly almost never available, buyers are tending to purchase homes that require little maintenance and upgrading. The days of the HEQ are over for new purchasers.

It is much easier to feel optimistic about the market improving with a flurry of activity. My personal feeling is that we still have too much inventory which will put further downward pressure on prices into next summer at which time I would call for a bottom. Maybe I am right, maybe I am wrong. Time will tell. To search all Vail listings, visit www.investinvail.net