Breckenridge Local Updates, Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Jan. 4, 2021

STATE OF THE REAL ESTATE MARKET – 2021

 

Among the predictability of all the COVID guidance and restrictions, there was a smattering of unforeseen events in 2020. If someone on the 13th of March 2020, (when we went into full lockdown), had given me a snapshot of what the remainder of the year would have looked like for Summit County, I would have thought that they were crazy. Who would have foreseen that we would have a relatively successful summer for business? Indeed, the reality was very different from our normal way of life, but it does have to be said that the new normal that we encountered this summer was generally better than anticipated.

 

The fall did bring with it the much anticipated and predicted uptick in COVID cases and around Thanksgiving, the tough decision was made to impose some stringent restrictions on most types of business and in particular the restaurant industry, that was closed to all indoor dining. It was testament to the resilience of local business owners and also our loyal visitors that you could see people having meals outdoors, either in temporary yurts and tents, or simply alfresco - even with dropping temperatures!

 

Fortunately, the county as a whole came together and our cases are currently falling and as I type the decision is being finalized to move us from red to orange on the State COVID dial, which will allow two households in rental properties, 25% occupancy in restaurants and 50% occupancy in retail stores.

 

The clear beneficiary in 2020 as a whole, and I use that term carefully as it feels awkward in the current times of a pandemic, was the real estate industry. The graphic below for November 2020 tells the story for June (when lockdown restrictions were eased) through the end of the year.

 

 

Alternate text

 

The reality is that this surge in activity has essentially ‘cleared the shelves’ of inventory and we are looking at low inventory for all of 2021 and beyond. The typical ownership lifecycle of mountain homes is 3-5 years and this means that looking forward, many of the properties that were bought in 2020 will not be hitting the market for a while. This low inventory cycle will offer a lot of support for current pricing and also encourage price increases. In addition to the effect of low inventory, low interest rates are allowing people to afford significantly higher valued homes and the prospect for rates staying low well into 2023 is strong.

 

Whilst the market would appear to favor the seller in 2021, it is interesting to note that buyers have been willing to step up to the plate, hedging that pricing is no doubt continue to increase and also that if inflation reappears in the future, real estate offers excellent insurance against this trend.

 

So, in general terms, my view is that the remainder of this winter will be a little grumpy and lumpy with improvements to the Summit County business climate in early summer, as vaccinations hopefully become more widely administered and the weather improves.

 

Wishing you all the best for 2021 and continued good health.

 

James Shingles

 

Dec. 8, 2020

October real estate in Summit County

October real estate in Summit County tops last months record with $360M in gross volume and 442 transactions!

  • Market Analysis by Area for October 2020: There were a total of 442 transactions and $360,036,310 in monetary volume. The average transaction price for all 18 reported areas, plus Deed Restricted transactions was $836,840, average residential price was $907,528 and average residential PSF was $527.
  • YTD 2020 Market Analysis by Area (10 months): There were a total of 2123 transactions, and $1,726,919,986 in monetary volume. The average transaction price for all 18 reported areas was $834,787, average residential price was $898,740 and average residential PPF was $517.
  • Market Snapshot for FULL Years 2020 vs 2019:  Average Indicators for $: Single Family +7% change, Multi- Family +7% and Vacant Land -2%. Median Indicators for Single Family +11%, Multi- Family +10% and Vacant Land 5%.
  • Market Analysis % Change YTD Year 2020: Monetary volume ($360,036,310) in October 2020 was up 81% from October 2019. Transactions (442) were up 55% from October 2019.  YTD 2020 Monetary Volume is pacing 12% up from YTD 2019. YTD 2020 transactions are pacing 7% up to YTD 2019. 
  • Residential Cost Analysis:  Residential volume in October had 364 transactions with $330,340,010 gross volume. There were 95 properties that sold for $1M and above in October.  There were 128 Single Family, 236 Multi-Family and 36 Vacant Land transactions.
  • Average Price History by Type- YTD Year 2020: Average price for residential Single Family: $1,349,741, Multi-family: $601,687 and Vacant Land: $339,415.
  • Comparative Historical Cost Analysis Comparison YTD 2020-2019-2018: YTD 2020, there were 1725 residential transactions and $1,550,326,356 gross $ volume with 488 properties selling for over $1M. YTD 2019, there were 1554 transactions with $1,279,897,406 gross $ volume with 360 properties selling for over $1M. YTD 2018, there were 1662 transactions with $1,243,846,478 gross $ volume with 309 properties selling for over $1M.
  • Top Lender Analysis October 2020: There were 738 loans in October. 322 loans were related to sales. There were 383 REFI's and 33 loans were timeshare related. 27% of the real estate closings were cash transactions.
  • Market Highlights:  Please see page 11 of the Market Analysis- Note the the higher priced sale in October 2020 in the Timber Trail area -Breckenridge at $4.800,000. The top priced PSF was in the Mountain Thunder condos - Breck at $972.
  • Foreclosures: There was one Foreclosure action in October 2020 compared to 8 in October 2019. There have been a total of 25 Foreclosure actions YTD 2020. There were no Bank sales in October.
  • Purchaser Profile Abstract:  Upper end sales were down in October with 98 compared to 115 in September. Our buyers for real estate transactions for October 2020: Front Range demographic at 45% of our market, 19% are "local" and 36% are out of state buyers with 0% International.
  • Land Title New Development Summary: This (page 18) shows all the new construction each month, there were 28 in October.
Nov. 16, 2020

October 31, 2020 Real Estate Statistics for Breckenridge and Summit County

October 31, 2020 Real Estate Statistics for Breckenridge and Summit County

Posted by Breckenridge Associates Real Estate on Friday, October 23rd, 2020 at 11:10am.

2020 sales through October 31st brought stats none of us saw coming. Like the rest of the world, we have been shocked this year by circumstances never before encountered. Knowing the Breckenridge real estate market fared better than most back in 2008, we could only be cautiously optimistic. When public health allowed real estate showings to resume this past June, we were more than pleased to see buyers returning, but never expected to see the surprising gains reflected in the October stats report. 

Clearly, people want to own property in the mountains. Sales prices are going up and inventory is going down. Our office is following this trend with an increase of 23% in sales dollar volume, while residential listings are down 47%. There are currently 117 residential listings in Breckenridge compared to 223 this time last year. While residential sales are on the rise, vacant land sales have been steadily increasing as well. The number of 2020 land sales are on track to double those of 2019. 

October showings were up 22% over October 2019, and up 16% year to date. The average single family home price is $1.6 million for Breckenridge and $1.46 million for Summit County, both record-breaking highs. 

By far, the statistics we are most proud of are our number 1 positions in dollar volume, properties sold, in-house sales and in-market-share percentage for all Breckenridge real estate offices. 

Oct. 15, 2020

Market Watch September 2020

Check out these real estate trends for Summit County - September 2020. 

September 2020 - Single Family Real Estate Sales

Summit County single family real estate sales

September 2020 - Condo and Townhome Real Estate Sales

September 2020 - Condo and Townhome Real Estate Sales

Oct. 8, 2020

Zoom Town - The popularity of Breckenridge and other mountain towns

Zoom Town

 

There has been a lot of talk in recent months about how the structural shift in the real estate market is playing out geographically. When a trend becomes more engrained in the market it is not unusual for a term to be coined to reference this trend. ‘Zoom Town’ is a term that is being used on a more routine basis for locations that fit the description of  - Somewhere that offers recreational or lifestyle benefits over the more urban locations that people are moving to.

NPR’s Planet Money defines “zoom towns” as housing markets that are booming as remote work takes off—adding another term to our growing pandemic lexicon.

 

The mountain communities have certainly felt the effects of this trend and not only from people looking for a new place to call home, but also prospective second homeowners from Denver, the Front Range and further afield. It is interesting to note that the real estate market in Denver, Boulder etc is also feeling the Zoom Town migration, as is Chaffee County, where I have recently talked to a broker there who said this is the most active summer selling season on record.

 

With the heightened activity in one of our major feeder markets (Denver and the Front Range), my prediction is that we will see continued growth in Summit County for the foreseeable future.

 

Please do call me anytime to talk about the market in general and my thoughts for the future.

 

 

Statistics Snapshot

 

·      Currently there are 150 residential listings in Breck. Last year at this time there were 261. Down 43%.

·      Currently 210 residential listings are under contract, last year 110 at this time.

·      Number of land sales in 2020 set to double that of 2019

 

More Reading

https://www.forbes.com/sites/irenelevine/2020/09/15/zoom-towns-why-your-last-vacation-getaway-may-be-your-next-home/#25aae5ab3ad3

 

https://magazine.realtor/daily-news/2020/09/16/is-your-housing-market-considered-a-zoom-town

Aug. 31, 2020

Vail Resort's plan for the 2020/2021 ski season

Making sure you saw Vail Resort's CEO, Rob Katz, providing details on the Winter Operating Plan for the 2020/21 season. This announcement highlights their commitment to safety, including a new reservation system for pass holders.  You can see the full announcement here and more information on the Season Pass Reservation System can be found here.

 

I will be keeping in touch with you in the coming weeks to discuss this program and share more details around the season ahead. In addition to implementing a reservation system, Vail Resorts have adapted their lift ticket access model in an effort to manage capacity across the 34 owned and operated resorts in North America.

 

If you have any questions, please don’t hesitate to reach out.

Aug. 13, 2020

STATE OF THE REAL ESTATE MARKET – AUGUST 2020

Who are the winners of the urban exodus?

In the economy, whenever there is stress in one part of the market, there are always winners and unfortunately losers.  From the pandemic, there are three primary winners in ski real estate.

Land: I have been surprised to see raw land near ski resorts go as quickly as it has. I’ve seen some lots sitting on the market for extended periods of time, that are now selling.

Free standing single family: People want their own space and the ability to ride out future pandemics in comfort.  In ski towns throughout Colorado, many second homeowners from large cities moved to their ski home to weather the pandemic.  I don’t see this trend reversing, if anything it will only accelerate.

Multi-Family: There has still been plenty of activity in the Condo / Townhome / Duplex market despite these traditionally being income generating properties and the uncertainty f the upcoming winter. As a group they have matched the number of sales of single family homes

Ranches: Ranches, whilst not really a part of the Summit County market, have been slow movers the last 4 or 5 years as older generations aged out of the large properties and their kin no longer wanted the hassle of such a large property.  The pandemic has put these properties back in vogue for their unique qualities and remoteness.  Remote is now back in style in real estate as long as there is a good internet connection! Park County land sales are on the up.

In my last post on the State of the Market, I made some predictions that are playing out and being reinforced by continued high levels of activity. So why is this happening?

What is driving this trend of increasing prices and low inventory?

View More
Aug. 6, 2020

It has been a hot summer for Real Estate

As we move into the latter part of the summer, the heat in the real estate market shows no sign of abating. And we are not the only area that is experiencing the uptick in activity. The Denver Metro area that makes up a large part of our real estate market is also experiencing a continued inflow of residents. This article offers a good insight into how this migration of people is changing the metro area.

Denver Union Station

Denver a top “gentrifying” city in the US

Denver Colorado is the second fastest “gentrifying” area in the country just behind San Francisco.  Furthermore, Denver beat out Boston, Miami, New Orleans, Austin, and countless others due to the rapid gentrification of the downtown core.  What is Gentrification? How does it occur? Why is Denver gentrifying faster than other markets?  What does this mean for real estate and affordable housing? Read MORE

https://coloradohardmoney.com/denver-top-gentrifying-city/

 

 

July 21, 2020

STATE OF THE REAL ESTATE MARKET – JULY 2020

MY PERSONAL REAL ESTATE INSIGHTS FOR THE NEXT 12+ MONTHS

 

 

The past 4-6 weeks have certainly been a very interesting time in the Summit County real estate market. Signaled by the opening of short-term rentals and the easing of COVID restrictions, activity in real estate has been very significant indeed.

 

Many of us have talked about a structural shift taking place, where the demand for an escape from metro areas would significantly impact our market. What many of us did not fully account for was how quickly this demand would ramp up and the degree to which buyers would be willing to act on the impulse and drive the surge in properties going under contract. As of today, the 20th July 2020, Breckenridge has 262 active residential listings available. There are currently 167 residential properties under contract. Put another way, pending listings represent almost 2/3 of the total number of residential listings that are active.

View More
July 8, 2020

Market Watch July 2020

Market Update - Breckenridge and Summit County update - July 2020

 

June and July have certainly seen a healthy rebound from the quieter months of April and May. Here is a snapshot of the activity over the last 7 days.

53 properties sold - of these 3 were over $1.5m

107 properties went under contract - of these 12 were over $1.5m / 3 were over $3m

84 new listings

861 active residential listings - right about the same as this time last year

491 active land listings

Jumbo loans are tight at the moment (loans over $510,400) - this means that the majority of higher priced homes are funded by cash or private funding channels. Properties that are selling under $1.5m are taking advantage of the low priced interest rates and cash. 

 

 

July 2020 Market update