Go to the mobile version of this Web site.

Login | Contact Us | Site Map | Paid archives | Electronic edition | Subscription Questions | Extras

High-end homes sell big

Eagle County sees 7% increase in total '07 real estate sales

By David O. Williams , Special to the Rocky

Published February 12, 2008 at 12:05 a.m.

Text size  
$24.9 million This seven-bedroom, mountaintop home under construction in Eagle County has nearly 16,000 square feet, 14 bathrooms, a theater, wine room and 360-degree views.

Photo by Vailrealestate.Com

$24.9 million This seven-bedroom, mountaintop home under construction in Eagle County has nearly 16,000 square feet, 14 bathrooms, a theater, wine room and 360-degree views.

$24.9 million This seven-bedroom, mountaintop home under construction in Eagle County has nearly 16,000 square feet, 14 bathrooms, a theater, wine room and 360-degree views.

$24.9 million This seven-bedroom, mountaintop home under construction in Eagle County has nearly 16,000 square feet, 14 bathrooms, a theater, wine room and 360-degree views.

More Real Estate

More stories »

Map my news

The rest of the nation's real estate market may be singing the subprime mortgage blues, but in Colorado's high-end resorts markets, refrains of Happy Days Are Here Again still echo from the surrounding peaks.

In Eagle County, home to the Vail and Beaver Creek ski areas, 2007 saw record sales volume, with overall residential and commercial sales totaling $2.96 billion and surpassing the previous record of $2.8 billion (set in 2005) by $160 million. The 2007 record represents a 7 percent increase over 2006.

"The high-end niche of our market continues to lead the way, showing strong gains across the board," said Led Gardner of Vail-based Led Gardner & Associates, citing a 41 percent increase in the sale of properties priced between $3 million and $5 million over the past two years. "There's still a large pool of money circling the globe that pursues luxury trophy homes."

Gardner points to the new Arrabelle at Vail Square condo and hotel project at the base of the gondola in Vail, where yet-to-be completed units first sold for $1,100 a square foot and have since flipped for between $1,500 and $2,000 a square foot.

The number of transactions in the lower end of the market - which in the Vail area means sub-$1 million - was off in 2007, with the overall number of deals declining 14 percent.

The amount of new high-end inventory as part of Vail's ongoing redevelopment surge continues to drive the market.

"In the lower price points, we see less people buying than a year or two ago in a frenzy market, but we've had some great activity in the higher end," said Slifer Smith and Frampton Real Estate's Jim Flaum, whose company accounted for $1.48 billion of the sales in Eagle County in 2007 - a record for the firm.

"There's a certain amount of people who want to wait and see what happens, make sure the stock market straightens out, make sure everything's going to be all right and that, depending on who's elected president, the country doesn't come to an end," Flaum said. "That's certainly more of a factor compared to three years ago."

But with 70 million baby boomers coming into their prime second-home-buying year and many of them still wealthy enough to be unfazed by the lending crisis, experts say the limited inventory of "beach-front" properties with ski-in, ski-out access is still being hotly pursued in markets such as Vail, Aspen and Telluride.

"People who are buying in Vail for the most part are not really impacted by (the mortgage crisis); they're very wealthy and they're very insulated," said Gerry Hartung, 51, an Internet and print publisher from Silver Spring, Md., who owns a condo in the Vail Cascade Resort & Spa and has purchased land in nearby Cordillera for a future home.

"People are (buying resort property) for lifestyle reasons," Hartung adds. "When we bought our place in the Cascade, it was not because it was a great investment and it was going to go up in value. It was because we wanted to be there and we wanted some place when we came out to ski, and as it turns out, it has been one of the best investments I've ever made."

In Pitkin County, home to Aspen and Snowmass, total commercial and real estate sales in 2007 were off about 5 percent from a record 2006, down to $2.52 billion from $2.64 billion. But brokers and developers say the ultra high end of the market continues to sizzle.

"There is resilience in that end of the market in Snowmass and Aspen," said Scott Calliham, director of sales for Related WestPac Real Estate, which is developing the new $1 billion base village at Snowmass. Since December, the company has sold 65 percent of the Little Nell Residences condo project in Snowmass, with prices starting at $3.1 million.

Comments

  • February 12, 2008

    2 p.m.

    Suggest removal

    DougH writes:

    Was there ever any doubt that the George Bush Tax cuts for the wealthy would work out as intended. I am sure that developers and realtors in Eagle County will be sad to see old George go. It has been a nice ride. Also sure they are glad their customers are not in foreclosure, like so many middle class Americans are..

  • February 13, 2008

    9:24 a.m.

    Suggest removal

    Marshdale writes:

    Right on Doug. It does not take a genius to put 2 and 2 together. However I'm still baffled as to why so many blue collar workers allow them selves to believe that they pay less taxes under republican leadership. If they think this tax rebate is going to help the economy they need to get a grip. They will be spending it on higher energy costs, health care, and food. Durable goods purchasing is not going to happen. It is a feel good Red Herring put forth by polititions to give us the illusion that it will help things. Wake up american worker. Republicans only care about the rich. When will you get it?

  • February 13, 2008

    10:39 p.m.

    Suggest removal

    mstar71 writes:

    No, Republicans
    support people who work hard to improve their quality of life. This country was built upon the backs of hard-working, industrious individuals who were willing to sacrifice in order to achieve more than the average Joe. You both are complainers and you will always work for someone else who was willing to take a risk, work within the most efficient capitalist system on the planet, and succeed. You and you alone are responsible for your standard of living; the sooner both of you realize this and take action instead of pissing and moaning, the less time you will have to condemn those that have taken control of their own destinies.

  • March 24, 2008

    10:16 a.m.

    Suggest removal

    dawiglet writes:

    Thanks mstar71 -

    I was beginning to drown in the liberal vommit. Its refreshing to hear a real perspective.

    Marshdale must be SOOO enlightened - "When will you get it?" That's hilarious. . . . "WE NEED REVOLUTION, IT'S A CONSPIRACY, IT'S A CONSPIRACY!!!" . . "GET A GRIP?" . .whatever . .