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The real estate economy in Crested Butte continues positive momentum at the mid-way point in 2013. Year to date, just over 130 residential properties have sold in communities from Crested Butte South to Mt. Crested Butte. Another 30 homes and condos are currently under contract. This represents about $65 million in closed sales volume. Twelve of these sales were for luxury properties sold at or above $1 million with the biggest sale year-to-date being a $4,250,000 Prospect ski in – ski out home. Impressive sales activity for our small market area. Last year during the same time frame we realized 109 residential sales and $48 million in sales volume.
These numbers are also impressive considering that inventory levels of newly listed homes and condos shot skyward during May and June. Currently, we have 437 homes, condos and town homes listed for sale. This is a 25% increase in active listings compared to last year. Interestingly, our average days on market is still very high: over 300 days.
Right now in the Town of Crested Butte there are 77 active residential listings. Up in Mt. Crested Butte there are 221 active listings. And, in Rural Crested Butte and Rural Mt. Crested Butte locations, we have 106 listings for sale.
High Inventory Levels Driving A Buyer’s Market?
In the face of high inventory levels, buyers remain bullish on real estate investment in Crested Butte. Why? I believe choice drives demand. The high inventory levels have created competition among sellers, keeping a buyer’s market condition in place. For the most part, buyers around here are being aggressive with offers. With all of the transaction activity, it has become easier to ascertain price and arrive at fair market value. This is good for both buyers and sellers.
Another factor driving investments around here is the threat of rising interest rates on home loans. All indicators are telling us the days of sub 4% interest rates are over. Current 30 year, fixed rate mortgages are hovering around 4.5%.
In our market, about half of the real estate purchases are with conventional home loans (the other half are all cash sales) so sensitivity to interest rates directly impacts sales. Buyers are buying before these rates jump any higher.The other factor driving the demand is scarcity of foreclosure and short sale opportunities. While there are still some short sale and bank owned listings for sale in our market, the opportunities are fewer and farther between and with the rise in the number of overall sales, banks are pricing their “distressed” offerings closer to real market value. This is having a stabilizing effect on our marketplace and property values. To some buyers, this is a sign that prices will edge higher going forward. In many areas around the valley list prices have already gone higher.
What Your Money Gets You in Crested Butte
Currently, in the town of Crested Butte, the median list price of a single family home is $914,000 and for a condo the median list price is $255,000.In Mt. Crested Butte, the median list price for a single family home is $985,000. The median list price for a condo in Mt. Crested Butte is $231,000.In Crested Butte South, the median list price for a single family home is $482,000 and condos are averaging $285,000.
So, in spite of our market’s high inventory levels and the threat of higher interest rates, prices remain high. Thanks for reading today! We hope to see you in Crested Butte very soon.
Benson Sotheby’s International Realty