Well, there was quite a lot of activity this summer in the Crested Butte area considering the status of the national real estate market and financial markets. Below are the properties currently under contract or that have sold since May 25, 2008. Many bargains were to be had for the wise investor as many Seller’s adjustable rate mortgages shifted higher causing an influx of foreclosures and short sales. I suspect we will see a steady supply of these deals in the months to come. These deals are being purchased which in the long run will lower our inventory of inexpensive properties and ultimately allow the remaining inventory to appreciate once again. Cash is king is this market and now is the time to buy as we may be approaching the bottom of the real estate market. My favorite quote from Warren Buffett is getting some attention on the national news as he has started buying all over the board, “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” Some interesting data on the southern California real estate market: Sales are 65% higher than that of one year ago and over 50% of these sales were foreclosures.. This shows that investors are out and buying in large numbers.
Due to some incredible bargains and low sales prices here in Crested Butte and Mount Crested Butte there has been pressure on other Sellers to lower their prices and many have done so (Please click the links below for some of the best deals in the valley right now). The vast majority and those who do not need to sell refuse to lower prices as they see value in their investments. Attached is a graph depicting Average and Median home and condo prices for the last three years and to date for 2008. Notice how single family homes are on a steady incline and condos have been on a steady decline. I attribute this to the fact that the condo market was the easiest and least expensive market to get into here. Many of these investors bought with 2, 3 or 5 year arms and they are coming due. With the inability to obtain new financing, these sellers are desperate to unload before their losses increase. I will be sending a year end report in January so that you can see year end totals and sales that occur after the election.
As you can see with the attached graph of reported summer sales, land has been the hardest hit. This has caused a desperate environment for our local construction companies, builders and architects who are extremely hungry for work. As the inventory of land increases and values decrease this may be the best opportunity to purchase land and build a home in the valley. Inexpensive money is still available for those with great credit and full doc loan applications (See attached Crested Butte Savings and Loan rate sheet). Unfortunately for those Buyers with stated income there appears to be no current programs for lending.
As always, if you ever need additional information or new listings sent to you please send me an email and I would be happy to do so.
Corey Dwan – REALTOR
Benson Sotheby’s International Realty
P.O. Box 210
433 Sixth Street
Crested Butte, CO 81224
970-325-3219 World Wide Cell