Home Sales Increase in Crested Butte and Nationally
Posted on Friday, April 9th, 2010 at 11:16 am.
Home Sales Increase Despite Overall Economy -
According to the 2010 National Association of Realtor’s (NAR)Investment and Vacation Home Buyers Survey, vacation home sales increased 7.9% to 553,000 (up from 513,000 in 2008). Approximately 27% of the buyers surveyed were either investment and/or vacation home buyers. Their motivation to purchase is quite different from a “need aspect” of a primary home buyer. These buyers were motivated to purchase a vacation home based on “lifestyle choice, often with the expectation that the home will become the buyer’s primary residence in the future”. The median price for a vacation home increased by 12.7% from 2008 and surprisingly, the average buyer was 46 years old and their median household income went down to $87,500 (from $97,200 in 2008).
According to NAR, one in ten home buyers purchased a vacation home in 2009. ”Even with a rise in vacation home prices, some Realtors say their clients think now is a good time to buy”, says Alexis Eldorrado, managing broker of Eldorrado Chicago Real Estate. She goes on to say that “ultimately (a vacation home) has been a dream for many, and with the sudden shift in market prices due to the economy, many people realize it is a good time to buy. People are buying today at prices from 10-12 years ago.”
Lawrence Yun, chief economist for the National Association of Realtors states, “the typical vacation-home buyer is making a lifestyle choice, with 9 out of 10 saying they intend to use the property for vacations or as a family retreat. Investment buyers primarily seek rental income” – excerpt taken from an article from Dennis Hanton, Inman News.
In contrast, 73% of residential property buyers in 2009 purchased a home to be used as a primary residence. Of the primary residence buyers, 54% were first-time home buyers. This is a record breaker for first-time home buyers, states Yun. The availability of the First-Time Buyer Home Buyer Tax Credit combined with job relocation needs, formation of new households or changes in family circumstances were the main factors of purchasing a primary residence in this survey.
Existing home sales rose to 5.2 million in 2009 (from 4.9 million in 2008) due to a combination of factors according to NAR: “low-mortgage interest rates, favorable affordability conditions, and the First-Time Buyer Home Buyer Tax Credit, which brought new buyers to the market”. Unfortunately, the news is not so good for builders as new home sales fell to 374,ooo units in 2009 (from 485,000 in 2008).
Buyers of investment properties still have opportunity; however, price, location, and local demand for rental units are some of the major factors influencing their purchase, states the survey. A total of 17% investment buyers decreased for 2009 (from 21% in 2008). Sales for residential investment properties fell 15.9% to 940,000. Interestingly, the share of investment properties purchased increased in the West to 25% (up from 18% in 2008). NAR described the typical buyer was one who paid all cash with a median income of $87,200.
NAR’s 2010 Investment and Vacation Home Buyers Survey was compiled from a random sample of 1,930 randomly selected households who bought residential real estate in 2009. The survey was conducted in March 2010 with a controlled age and income.
Crested Butte Residential Property Sales Increase -
Crested Butte Residential Property Sales are reflecting increased numbers in both the condominium and single family categories. Acccording to the Gunnison Country Board of Realtors’ Multiple Listing Service, from April 6, 2008 to April 6, 2009, there was a total of 33 condominium sales in the Crested Butte area with an average sales price of $397,121 and the average number of days on the market being 314. For the same time period only 1 year later (2009-2010), a total of 62 condominiums sold with an average sales price of $294,098 and the average number of days on the market being 338. Residential home sales in and around Crested Butte also reflect a big change. Local MLS research of the dates from April 6, 2008 – April 6, 2009 showed only 33 sold homes with and average sales price of $1,048,862 and staying on the market an average of 417 days. In comparison, From April 6, 2009 – April 6, 2010, Crested Butte saw a rise in residential sales to 57 but a reduction in sales price to $851,118 and averaging 311 days on the market.
The confidence in the real estate market in Crested Butte is strengthening and Buyers are finding some incredible deals as Sellers move to adjust their prices sooner than later. With short sales providing low comparable price per square foot, Agents are noting to both their Buyers (and Sellers) that Crested Butte is still a Buyer’s market with more and more Buyers focusing on Crested Butte as a lifestyle investment for their family.
Jana is ranked in the top 1% of Prudential agents nationwide. She is an E-Certified Pro, Fine Home Specialist, and Certified Online Seller Advantage Professional. Jana has a beautiful selection of real-estate property whether you're looking for a home or condo; she can assist you in finding your awe inspired dream home in Gunnison County Crested Butte, Colorado.
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