Peaks & Valleys

THE CRESTED BUTTE REAL ESTATE ADVISOR – FEBRUARY 2019 ISSUE

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Greetings from Snowy Crested Butte!
When I explain our local real estate economy to inquiring minds I tend to use the “peaks and valleys” metaphor. When you hike, bike, or ski around here you are either going up or going down. Sometimes you hit a flat section but not for very long. Gunnison Valley’s real estate market (and our economy) is no different.

When Triple Peaks purchased the ski resort in 2004 real estate and tourism were at the bottom of a valley. Before they took over the resort, it was just a friends and family real estate marketplace. People bought houses or built something new because they already had a deep connection to the valley and simply needed a roof over their heads. The economy was soft and harshly seasonal with limited year ’round job opportunities. After each ski season many locals would leave town to find work and survive until the next ski season.

Triple Peaks put this valley and our resort on the map creating a new breed of local, tourist and real estate investor. From 2004 to 2008, we experienced a real estate boom like nothing this place had ever seen. The peak was steep and wrought with risk. Over $1.2 billion worth of real estate was bought and sold in that short four-year span. We climbed that peak quickly and as it turns out, recklessly. People with no connection to Crested Butte let alone Colorado were buying up our land, our condos and our houses. Loans were cheap and easy and the market was fueled by speculation of Triple Peak’s plans for Crested Butte. By October 2008 the climbing season was over and our market fell down the other side of the peak. It took our economy years to recover as we slogged along the valley floor during the recession.

It’s no secret that real estate values are rising again in Crested Butte and Gunnison County. We are indeed climbing another peak.

Yes, Vail Resorts is the new owner of the ski resort (October 2018) but our market’s recovery began before they showed up in town. A variety of factors contribute to our valley’s spike in popularity and real estate rebound which began in earnest in 2015 when we reached $150 million in sales.

Social media plays a major role in promoting our community. The impact from hashtags and posts for all things Crested Butte is stunning. One visitor comes to town and posts something about their experience and literally thousands of followers know about it…instantly.

But, the most significant contributing factor has been Colorado’s booming economy. Population and job growth along the Front Range are surging. On weekends and holidays, people head into the mountains with unprecedented zeal and number. Choke points in crowded places like Summit County, the Vail Valley and Steamboat Springs are causing people to search for more authentic mountain town experiences. What was once a hard sell to get people to drive to Crested Butte for a ski getaway is now easy. Interstate 70 is a mess and now the 4.5 hour commute to ski and play here is considered reasonable.

Its important to note that we’ve yet to match the market’s sales performance from that 2004-2008 era. Over the last two years we’ve surpassed $500 million in sales volume which is the strongest 24-month period we’ve experienced since 2005 and 2006 when we reached over $700 million in sales. Today, land and homesite prices are still well below their peak values. And, compared to all other Colorado resort communities Crested Butte’s home and condo prices are highly attractive.

With Vail Resorts now in charge and the new Epic Pass program driving new found winter tourism in Crested Butte the economic future is bright for this valley. The new question: How high is the peak we are climbing this time around?

Thanks for reading today. For a deeper perspective on our local market please contact me anytime.

Channing Boucher