VAIL, Colo., Dec. 3 /PRNewswire-USNewswire/ -- Resort real estate at exclusive destinations such as Vail, Aspen, or Telluride has often been immune to economic ups and downs. Property values have not always appreciated, but these markets have typically remained stable. The markets are small and desirable, which would offset many economic impacts. That's not the case in 2009. Currently these markets are suffering in the economic downturn just like markets elsewhere. Prices have fallen 30% from their peaks in 2006 and foreclosures are on the rise; but perhaps most telling is the slowdown in sales activity.

Real estate sales in Eagle County, Colorado, which is home to Vail and Beaver Creek ski resorts, have plummeted over 72% compared to 2005, and 47% from last year. In fact, 2009 sales are on track to reach just 41% of the average sales volume from the past 17 years, equaling only 69.5% of 1992's total sales, which was long before many of the existing properties were even built.

Urban areas see continued activity because people need a primary residence to live in. But it would seem that vacation homes are not a priority for most people. Lending restrictions have become tougher for second homes and investment properties, contributing to the slowdown in real estate sales in the ski resorts. However, a more positive reason is that many sellers are unwilling to part with their properties if they have lost value. This is the flip side of communities with deeper financial resources. In the exclusive Bachelor Gulch and Beaver Creek neighborhoods, 15% of the property listings from last summer have been taken off the market, a sign that some owners prefer to ride this one out.

Of course, not all the wealthy are immune to money problems. In the past month, several multi-million dollar foreclosures have been filed. A home listed for $7.5 million in Beaver Creek is set for a foreclosure sale in February with a debt of $6 million. A beautiful horse property in nearby Edwards, Colorado was once for sale for $9 million, but is going to foreclosure with a debt somewhere around $5.5 million. A beautiful stone, attached single-family on the Eagle River needs to sell around $2.2 million to clear the loan, while the neighboring property sold for $3 million just last year. There is opportunity for savvy buyers and Realtors, who can often arrange short sales prior to the foreclosure sale date, especially for loans this large.

It takes creativity to sell in the current market, says Steve Michonski, a broker with Prudential Colorado Properties in Vail. Steve recently closed a deal where the seller agreed to complete a $7000 renovation of a bathroom prior to closing just to keep the buyer interested. The seller also paid all the buyer's closing expenses. The 3-bedroom property sold for $409,000 last month. Steve has another seller adding a garage to his home to get a leg up on the competing properties. The $130,000 improvement won't increase the sales price, but hopefully it will add to the appeal of the home.

Another seller struck an agreement with a local non-profit, The Vail Academy, to raffle his $1.3 million dollar 4-bedroom home in Vail. The drawing is New Year's Eve. Tickets are $100 each and can be ordered directly from the Vail Home Raffle website, www.winavailhome.com. The grand prize winner will receive the million dollar property plus $450,000 cash to pay taxes.

Ironically, with all the negative trends in the resort markets, several of Vail's largest real estate transactions ever have occurred in 2009. Two homes sold for over $15 million in Beaver Creek and the nearby Mountain Star gated community. A Bachelor Gulch home just closed over $11 million, and a $6 million penthouse at the slopeside Arrabelle in Lionshead was recently placed under contract. So, regardless of recessions, sales activity and pricing, Vail and Beaver Creek obviously still rank as top destinations for people from around the world.

SOURCE The Vail Academy

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RELATED LINKS
http://www.thevailacademy.org/
http://www.winavailhome.com/