From the Vail Daily:
EAGLE COUNTY, Colorado — Eagle County's real estate market passed $1 billion in sales for the year in November, but the total dollar volume of sales for 2011 still lags behind the 2010 totals.
According to the latest information from Land Title Guarantee Company, the county passed the $1 billion mark in sales for the 14th year since 1996 — 2009 was only year the county failed to meet or exceed the $1 billion mark.
There were 121 sales in November, nine more than the same month in 2010. Those sales added up to $124.8 million, only the second time in 2011 that dollar volume met or exceeded the 2010 numbers.
As was the case for most of 2011, the majority of sales in November were in downvalley communities. In November, more than 25 percent of all transactions were in Eagle, Gypsum and the surrounding areas. Lower-priced homes also made up the bulk of sales, with 71 percent of all sales being for $1 million or less.
Bank sales also continue to play a large role in the valley's real estate market, and most of those are in the western Eagle Valley. Eighteen of the 27 bank sales for November were in Eagle or Gypsum. Through November, there were 270 bank sales in the county.
While the sale with the highest price per square foot was in Vail's Solaris complex, the Vail Golf Course was the area with the highest average sales price — an average of $6.2 million over two transactions. One of those sales was of a newly-built home, which sold for $9.25 million, the highest transaction in all of Eagle County in November.
While just a few sales of multi-million-dollar properties have accounted for a large portion of the total sales volume, November had nine transactions over $4 million, the most transactions in this category in any month in 2011.
Saturday, January 7, 2012
Tuesday, January 3, 2012
Exclusive: U.S. is top 2012 property investment pick
While the United States offers the most stable and secure option in commercial real estate, investors said improvement in rent and occupancy growth and the repeal of a 1980 foreign investment tax would have the strongest impact on their investment decisions, according to the 20th annual survey of Association of Foreign Investors in Real Estate (AFIRE) members.
For about the past year or so, investors in U.S. commercial real estate have focused on gateway cities such as New York, Washington, Boston, San Francisco and Los Angeles, driving prices up and yields down.
Meanwhile commercial property in Brazil, with its bubbling economy and safer investment environment, has become a hot spot for global investors. Sao Paulo, Brazil's largest city, jumped to the fourth best city for real estate investment dollars in 2012, up from 26th place last year.
The United States is still very desirable and was second behind the UK in attracting cross border investment in 2011, according to Real Capital Analytics preliminary figures.
"The negative is it doesn't promise a whole lot of capital appreciation because the prime markets are already fully priced," AFIRE Chief Executive Officer James Fetgatter said. "By no means will Brazil replace the U.S., at least not in the forseeable future. Brazil is considered now a much safer place to invest and a place where you can get capital appreciation and good yield."
AFIRE'S survey respondents hold more than $874 billion of real estate globally, including $338 billion in the United States.
Sixty 60 percent of respondents said they plan to increase their investment in U.S. real estate in 2012, down from a record 72 percent last year, according to the 20th annual survey.
Some 42.2 percent said they believed the United States in 2012 would offer the best opportunity for the price of their commercial real estate investments to increase, down from 64.7 percent last year's survey.
The United States lost ground to Brazil, with 18.6 percent saying Brazil's property market offered the best growth opportunity for their investment dollars. That's up 14.2 percentage points, moving Brazil up to second place from fourth, and pushing China down to No. 3, according to the AFIRE survey.
Seventy percent of respondents picked one of the three countries as their favorite, while the remaining 30 percent had top choices from 13 other countries on five continents.
Respondents said they would invest more in U.S. commercial property if the fundamentals of rent and occupancy growth were stronger.
Another U.S. barrier respondents cited was the Foreign Investment in Real Property Tax Act (FIRPTA). The 1980 act, originally designed to protect farm property from foreign ownership, subjects foreign buyers to both their domestic and U.S. taxes when they sell their investment, unless their home country has a taxation treaty with the United States.
FIRPTA opponents have argued that the act unfairly penalizes foreign investors of real estate. Such double taxation does not apply if they buy U.S. stocks or bonds.
As for the top cities for foreign investment in 2012, New York remained No. 1. London moved up to No. 2 from No. 3, swapping ranks with Washington. Sao Paulo was fourth, and San Francisco moved up to No. 5 from No. 10 last year.
Europe's sovereign debt problems and looming recession pushed most of the countries there - except for a few such as Switzerland and Poland - off the map for real estate investors. Germany lost about half its support among respondents in terms of stability and price appreciation, according to the survey.
Emerging markets also seem to be getting more popular among potential investors. Respondents identified 25 countries they would consider for investment, up from 18 last year. Brazil topped the list, with China in second place, as each did last year. Turkey moved up to No. 3 from No. 7 last year. India and Vietnam each dropped down one spot, to No. 3 and No. 4 respectively. Appearing for the first time were Colombia, at No. 10, Hungary at No. 12, and Qatar at No. 17.
As for U.S. commercial real estate, respondents said that this year they would most likely invest in apartment buildings, the fourth consecutive year multifamily topped the list. Of all the types of U.S. commercial real estate, the multifamily sector has not only recovered from the post-2007 real estate slump but rents and occupancy are even stronger than before.
Warehouse and distribution centers ranked second, up from No. 5 last year. Office properties were third, up a notch from No. 4. Retail properties - shopping centers and malls - slipped to No. 4 from No. 2. Hotels ranked No. 5, down from No. 3 last year.
The survey was conducted in the fourth quarter by the James A. Graaskamp Center for Real Estate, Wisconsin School of Business.
For about the past year or so, investors in U.S. commercial real estate have focused on gateway cities such as New York, Washington, Boston, San Francisco and Los Angeles, driving prices up and yields down.
Meanwhile commercial property in Brazil, with its bubbling economy and safer investment environment, has become a hot spot for global investors. Sao Paulo, Brazil's largest city, jumped to the fourth best city for real estate investment dollars in 2012, up from 26th place last year.
The United States is still very desirable and was second behind the UK in attracting cross border investment in 2011, according to Real Capital Analytics preliminary figures.
"The negative is it doesn't promise a whole lot of capital appreciation because the prime markets are already fully priced," AFIRE Chief Executive Officer James Fetgatter said. "By no means will Brazil replace the U.S., at least not in the forseeable future. Brazil is considered now a much safer place to invest and a place where you can get capital appreciation and good yield."
AFIRE'S survey respondents hold more than $874 billion of real estate globally, including $338 billion in the United States.
Sixty 60 percent of respondents said they plan to increase their investment in U.S. real estate in 2012, down from a record 72 percent last year, according to the 20th annual survey.
Some 42.2 percent said they believed the United States in 2012 would offer the best opportunity for the price of their commercial real estate investments to increase, down from 64.7 percent last year's survey.
The United States lost ground to Brazil, with 18.6 percent saying Brazil's property market offered the best growth opportunity for their investment dollars. That's up 14.2 percentage points, moving Brazil up to second place from fourth, and pushing China down to No. 3, according to the AFIRE survey.
Seventy percent of respondents picked one of the three countries as their favorite, while the remaining 30 percent had top choices from 13 other countries on five continents.
Respondents said they would invest more in U.S. commercial property if the fundamentals of rent and occupancy growth were stronger.
Another U.S. barrier respondents cited was the Foreign Investment in Real Property Tax Act (FIRPTA). The 1980 act, originally designed to protect farm property from foreign ownership, subjects foreign buyers to both their domestic and U.S. taxes when they sell their investment, unless their home country has a taxation treaty with the United States.
FIRPTA opponents have argued that the act unfairly penalizes foreign investors of real estate. Such double taxation does not apply if they buy U.S. stocks or bonds.
As for the top cities for foreign investment in 2012, New York remained No. 1. London moved up to No. 2 from No. 3, swapping ranks with Washington. Sao Paulo was fourth, and San Francisco moved up to No. 5 from No. 10 last year.
Europe's sovereign debt problems and looming recession pushed most of the countries there - except for a few such as Switzerland and Poland - off the map for real estate investors. Germany lost about half its support among respondents in terms of stability and price appreciation, according to the survey.
Emerging markets also seem to be getting more popular among potential investors. Respondents identified 25 countries they would consider for investment, up from 18 last year. Brazil topped the list, with China in second place, as each did last year. Turkey moved up to No. 3 from No. 7 last year. India and Vietnam each dropped down one spot, to No. 3 and No. 4 respectively. Appearing for the first time were Colombia, at No. 10, Hungary at No. 12, and Qatar at No. 17.
As for U.S. commercial real estate, respondents said that this year they would most likely invest in apartment buildings, the fourth consecutive year multifamily topped the list. Of all the types of U.S. commercial real estate, the multifamily sector has not only recovered from the post-2007 real estate slump but rents and occupancy are even stronger than before.
Warehouse and distribution centers ranked second, up from No. 5 last year. Office properties were third, up a notch from No. 4. Retail properties - shopping centers and malls - slipped to No. 4 from No. 2. Hotels ranked No. 5, down from No. 3 last year.
The survey was conducted in the fourth quarter by the James A. Graaskamp Center for Real Estate, Wisconsin School of Business.
Thursday, December 22, 2011
VailMountain Announces a State-of-the-Art Gondola to Replace Vista Bahn Express Lift (#16) in Vail Village
Vail Mountain, the largest ski resort in the United States, has already begun making plans for its 50th anniversary in December 2012, by announcing the planned installation of a new, state-of-the art gondola to replace the Vista Bahn Express Lift (#16) inVailVillage.
The new gondola, which will have the number “1” to commemorate Vail’s original gondola in that location, will provide a 40 percent improvement in uphill capacity over the existing Vista Bahn Express Lift (#16) – the highest of any gondola inNorth America. The state-of-the-art gondola, the first installation of its kind inNorth America, will offer new features, such as free Wi-Fi access for guests.
“We could think of no better way to celebrate the 50th anniversary ofVailMountain than by making a dramatic investment to improve the experience for our guests. The new gondola will set a standard for how we transport guests up the mountain, significantly reducing wait times at one of the most popular and recognized lifts anywhere in the world. It will also offer a protected and comfortable ride, completewith free Wi-Fi access,” said Chris Jarnot, senior vice president and chief operating officer ofVailMountain. “The new gondola continues a long tradition of Vail’s investments to set the leading position in guest service anywhere in the mountain resort industry.”
“The new gondola in Vail Village will provide the final touch to Vail’s multi-billion dollar renaissance over the past decade, which has been the result of an incredible partnership between Vail Resorts, the Town of Vail and the entire Vail community,” said Andy Daly, mayor of the Town of Vail. “These investments have ensured Vail’s leadership position in the resort industry for many years to come.
The new gondola will be located in the same location as the existing lift and will reach the same location at Mid-Vail. The gondola is a state-of-the-art lift replacing the technology of the existing high-speed quad lift that was installed in 1985, approximately 26 years ago, and reintroducing a gondola to VailVillagenot experienced since the 1970s. The gondola is proposed to be installed in the spring and summer of 2012 and be operational for opening day of the 2012-2013 ski season, just in time to celebrate the 50th anniversary of Vail.
The base lift facility will be similar to the existing equipment but instead of chairs hanging from a cable, there will be gondola cabins. Unlike the Eagle Bahn Gondola (#19) in Lionshead, which is an enclosed facility, the new gondola will be an open air terminal
The new gondola is subject to Town ofVailand U.S. Forest Service approval. Additional details on the design and approval of the proposed gondola will be available in the coming months.
The new gondola, which will have the number “1” to commemorate Vail’s original gondola in that location, will provide a 40 percent improvement in uphill capacity over the existing Vista Bahn Express Lift (#16) – the highest of any gondola inNorth America. The state-of-the-art gondola, the first installation of its kind inNorth America, will offer new features, such as free Wi-Fi access for guests.
“We could think of no better way to celebrate the 50th anniversary ofVailMountain than by making a dramatic investment to improve the experience for our guests. The new gondola will set a standard for how we transport guests up the mountain, significantly reducing wait times at one of the most popular and recognized lifts anywhere in the world. It will also offer a protected and comfortable ride, completewith free Wi-Fi access,” said Chris Jarnot, senior vice president and chief operating officer ofVailMountain. “The new gondola continues a long tradition of Vail’s investments to set the leading position in guest service anywhere in the mountain resort industry.”
“The new gondola in Vail Village will provide the final touch to Vail’s multi-billion dollar renaissance over the past decade, which has been the result of an incredible partnership between Vail Resorts, the Town of Vail and the entire Vail community,” said Andy Daly, mayor of the Town of Vail. “These investments have ensured Vail’s leadership position in the resort industry for many years to come.
The new gondola will be located in the same location as the existing lift and will reach the same location at Mid-Vail. The gondola is a state-of-the-art lift replacing the technology of the existing high-speed quad lift that was installed in 1985, approximately 26 years ago, and reintroducing a gondola to VailVillagenot experienced since the 1970s. The gondola is proposed to be installed in the spring and summer of 2012 and be operational for opening day of the 2012-2013 ski season, just in time to celebrate the 50th anniversary of Vail.
The base lift facility will be similar to the existing equipment but instead of chairs hanging from a cable, there will be gondola cabins. Unlike the Eagle Bahn Gondola (#19) in Lionshead, which is an enclosed facility, the new gondola will be an open air terminal
The new gondola is subject to Town ofVailand U.S. Forest Service approval. Additional details on the design and approval of the proposed gondola will be available in the coming months.
Saturday, December 10, 2011
Thursdays in Vail this winter
Brought to you by the Vail Valley Foundation, Thursday nights starting at 6:30pm in Vail are always full of free music and fun. This free concert series takes place on the streets of Vail through April 12,2012. Locals can register to win a Volvo XC70 3.2 AWD car!
Here is a list of the acts:
- December 15th Marcia Ball
- January 19th White Water Ramble
- February 16th Leroy Justice
- March 8th Less Than Jake
- March 15th Lez Zeppelin
- March 22nd TBD
- March 29th Rootz Underground
- April 5th Kinky
- April 12th Funkiphino
Wednesday, November 30, 2011
Breaking News: U.S. Will Remain a Nation of Homeowners
From RISMEDIA
The U.S. will not become a nation of renters; there are just too many benefits, both financial and otherwise, to own versus rent. That’s according to the combined findings of several recent studies presented during the “Buyer or Renter Nation?” session held during the 2011 REALTORS® Conference & Expo last week.
An analysis over a 31-year period across 23 metropolitan areas compared the ownership benefits in terms of appreciation and interest deductibility and the costs homeowners incur with down payment, taxes, insurance and maintenance. When it was assumed that renters reinvested any savings in rent (versus a higher monthly mortgage payment), maintenance and down payment, renters had a greater portfolio than buyers in 91 percent of the areas examined. However, when the model allowed renters to spend any savings rather than reinvest those savings, 84 percent of buyers came out ahead.
“We knew that homeowners, on average, accumulate more wealth than renters,” said Ken Johnson, editor, Journal of Housing Research at Florida International University. Johnson spoke at the session and conducted the analysis with Eli Beracha. “These findings indicate that homeownership is a self-imposed savings plan. Not everyone should own a home, but from a financial perspective, people who are planning to stay in a property over the long term can benefit from buying.”
According to the most recent data from the Federal Reserve Board, a homeowner’s net worth is 45.9 times that of a renter’s.
Another analysis conducted by Johnson, Beracha, Hilla Skiba and Mark Hirschey determined that housing affordability is at record levels.
Twenty-three states are at 30-year record levels of affordability based on price-to-income ratios, and all 50 states are at 30-year record affordability levels based on mortgage payment-to-income ratios.
“Homeownership is more affordable today than at anytime over the last 30 years,” said Johnson.
Beyond the financial advantages of homeownership, Johnson also cited several studies that have demonstrated how homeownership enhances civic pride, improves voter turnout, increases personal happiness, reduces crime, and provides a better familial environment.
“These findings are no surprise to REALTORS®,” said NAR President Ron Phipps. “We, like the nation’s 75 million homeowners and many other who aspire to one day own a home, know homeownership is an investment in the future of our families, communities, and nation. That is why we will continue to fight for public policies that promote responsible, sustainable homeownership; we believe that anyone who is able and willing to assume the responsibilities of owning a home should have the opportunity to pursue that dream.
The U.S. will not become a nation of renters; there are just too many benefits, both financial and otherwise, to own versus rent. That’s according to the combined findings of several recent studies presented during the “Buyer or Renter Nation?” session held during the 2011 REALTORS® Conference & Expo last week.
An analysis over a 31-year period across 23 metropolitan areas compared the ownership benefits in terms of appreciation and interest deductibility and the costs homeowners incur with down payment, taxes, insurance and maintenance. When it was assumed that renters reinvested any savings in rent (versus a higher monthly mortgage payment), maintenance and down payment, renters had a greater portfolio than buyers in 91 percent of the areas examined. However, when the model allowed renters to spend any savings rather than reinvest those savings, 84 percent of buyers came out ahead.
“We knew that homeowners, on average, accumulate more wealth than renters,” said Ken Johnson, editor, Journal of Housing Research at Florida International University. Johnson spoke at the session and conducted the analysis with Eli Beracha. “These findings indicate that homeownership is a self-imposed savings plan. Not everyone should own a home, but from a financial perspective, people who are planning to stay in a property over the long term can benefit from buying.”
According to the most recent data from the Federal Reserve Board, a homeowner’s net worth is 45.9 times that of a renter’s.
Another analysis conducted by Johnson, Beracha, Hilla Skiba and Mark Hirschey determined that housing affordability is at record levels.
Twenty-three states are at 30-year record levels of affordability based on price-to-income ratios, and all 50 states are at 30-year record affordability levels based on mortgage payment-to-income ratios.
“Homeownership is more affordable today than at anytime over the last 30 years,” said Johnson.
Beyond the financial advantages of homeownership, Johnson also cited several studies that have demonstrated how homeownership enhances civic pride, improves voter turnout, increases personal happiness, reduces crime, and provides a better familial environment.
“These findings are no surprise to REALTORS®,” said NAR President Ron Phipps. “We, like the nation’s 75 million homeowners and many other who aspire to one day own a home, know homeownership is an investment in the future of our families, communities, and nation. That is why we will continue to fight for public policies that promote responsible, sustainable homeownership; we believe that anyone who is able and willing to assume the responsibilities of owning a home should have the opportunity to pursue that dream.
Thursday, November 10, 2011
Bank owned moving quickly in Eagle County
Sales of bank-owned properties and “short” sales are driving the county's down valley real estate market.
In the lower valley, and especially in Gypsum, there are some bargains available. One bank-owned property is worth more than $180,000 on the county's property-tax rolls. It's on the market at $104,900. An older single-family, one-bedroom home there is listed for less than $90,000.
There were 132 completed real estate sales in the county in September, the highest one-month total since October of 2008. But three years ago, those sales totaled more than $165.3 million. The total for September of this year was just less than $83 million. In fact, September's sales volume was only 35 percent of the total recorded in September of 2010 on 18 fewer sales.
Bank-owned property — about 20 percent of September's total — seems to be moving pretty quickly.
In the Vail Multiple Listing System there are currently a total of 29 Bank owned properties listed for sale as of 11/10/2011. Bank owned can be a perceived value but Buyers should also consider there is value in regular properties for sale.
In the lower valley, and especially in Gypsum, there are some bargains available. One bank-owned property is worth more than $180,000 on the county's property-tax rolls. It's on the market at $104,900. An older single-family, one-bedroom home there is listed for less than $90,000.
There were 132 completed real estate sales in the county in September, the highest one-month total since October of 2008. But three years ago, those sales totaled more than $165.3 million. The total for September of this year was just less than $83 million. In fact, September's sales volume was only 35 percent of the total recorded in September of 2010 on 18 fewer sales.
Bank-owned property — about 20 percent of September's total — seems to be moving pretty quickly.
In the Vail Multiple Listing System there are currently a total of 29 Bank owned properties listed for sale as of 11/10/2011. Bank owned can be a perceived value but Buyers should also consider there is value in regular properties for sale.
Tuesday, October 25, 2011
It's Time to Buy That House
From the Wall St Journal
U.S. house prices have plunged by nearly a third since 2006, and homeownership rates are falling at the fastest pace since the Great Depression.
The good news? Two key measures now suggest it's an excellent time to buy a house, either to live in for the long term or for investment income (but not for a quick flip). First, the nation's ratio of house prices to yearly rents is nearly restored to its prebubble average. Second, when mortgage rates are taken into consideration, houses are the most affordable they have been in decades.
Two of the silliest mantras during the real-estate bubble were that a house is the best investment you will ever make and that a renter "throws money down the drain." Whether buying is a better deal than renting isn't a stagnant fact but a changing condition that depends on the relationship between prices and rents, the cost of financing and other factors.
But the math is turning in buyers' favor. Stock-oriented folks can think of a house's price/rent ratio as akin to a stock's price/earnings ratio, in that it compares the cost of an asset with the money the asset is capable of generating. For investors, a lower ratio suggests more income for the price. For prospective homeowners, a lower ratio makes owning more attractive than renting, all else equal.
Nationwide, the ratio of home prices to yearly rents is 11.3, down from 18.5 at the peak of the bubble, according to Moody's Analytics. The average from 1989 to 2003 was about 10, so valuations aren't quite back to normal.
But for most home buyers, mortgage rates are a key determinant of their total costs. Rates are so low now that houses in many markets look like bargains, even if price/rent ratios aren't hitting new lows. The 30-year mortgage rate rose to 4.12% this week from a record low of 3.94% last week, Freddie Mac said Thursday. (The rates assume 0.8% in prepaid interest, or "points.") The latest rate is still less than half the average since 1971.
As a result, house payments are more affordable than they have been in decades. The National Association of Realtors Housing Affordability Index hit 183.7 in August, near its record high in data going back to 1970. The index's historic average is roughly 120. A reading of 100 would mean that a median-income family with a 20% down payment can afford a mortgage on a median-price home. So today's buyers can afford handsome houses—but prudent ones might opt for moderate houses with skimpy payments.
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