Bubble In The Rockies
There may be a housing glut in Denver, but as the Vail Daily News reports the boom is alive and well in the resort town. "The Vail Board of Realtors' multi-listing service that tracks available properties showed 572 residences for sale on Monday."
"Combine the tight housing supply with the fact that there are 650 real estate brokers in the county, more brokers than property, at the moment, and it makes for a highly competitive real estate sales environment. 'It's a bit of a dogfight for listings right now.'"
Is it surprising that the writer thinks this will go on and on? "Don't look for the stream of free-spending resort-real estate buyers to slow to a trickle any time soon. The cash-rich Baby Boom generation may continue to flood the market with buyers for a decade or longer."
"Minturn is preparing for a luxury 1,400-unit community. More residential and commercial development is planned near Eagle and Gypsum. Some of those proposed properties have been sold even before a single shovel-full of dirt has been moved."
5 Comments:
Yes, that legendary "cash rich" baby-boom generation. It's all demographics...
If I am not mistaken that was the same phenomenon that was going to keep the stock market endlessly rising in '99-00.
If you are at all interested at how Real Estate has completed warped the ski industry read
Downhill Slide by Hal Clifford.
http://www.sierraclub.org/sierra/200301/ski.asp
The main problem with Ski Resort Real Estate is that the number of skiers is remaining flat and rapidly aging. Skiing's hey day was the seventies/early eighties. Besides if you are over 65 years of age with bad knees do you really want to live at 8500+ feet? The air quality at Vail Pass is very poor to all the traffic on I-70. The longterm prospects for the Ski Industry are very bad.
If you are at all interested at how Real Estate has completed warped the ski industry read
Downhill Slide by Hal Clifford.
http://www.sierraclub.org/sierra/200301/ski.asp
The main problem with Ski Resort Real Estate is that the number of skiers is remaining flat and rapidly aging. Skiing's hey day was the seventies/early eighties. Besides if you are over 65 years of age with bad knees do you really want to live at 8500+ feet? The air quality at Vail Pass is very poor to all the traffic on I-70. The longterm prospects for the Ski Industry are very bad.
I know a landlord in Vail. He bought in the last crash (yes, Vail crashes too) and is doing very well. He's debating fixing up the property to sell it, or just selling it outright. His opinion is that Vail is not a good value right now.
There is no shortage of land out there either. The I-70 Corridor has loads of open space still and there are quite a few gas stop towns that would love to have some of the tax revenue Vail is getting. If you look at Gypsum and Eagle for instance they are building too (the people who work in Vail live in these smaller towns, often in trailers).
Yes, it's nuts in the ski areas. I'm almost 40 and have two small kids, I used to ski twice per month. I'm out of the sport for now and I'm not going to teach my kids downhill skiing until they're older. Regular people can't afford downhill skiing anyomre (I make about 2x the local average family income). I have thousands of acres of National Forest nearby with world class Cross country terrain, why should I pay $60 for lift tickest and $300/ night lodging for downhill? I'm in good shape, I don't NEED a chair lift.
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