A Golden Opportunity

In a turbulent economy, many individuals and households across the country are forced to take a cold, hard look at lifestyle habits and sort out luxuries from necessities. When it comes to big-ticket items like vacation homes, this prioritization step is particularly true. For some, the vacation home is among the first luxuries to take a backseat to everyday needs.

This scenario has no doubt impacted sales volume in resort markets where second-home sales comprise a bulk of the area's real estate transactions. With an over-saturation of vacation and investment homes on the market, sellers are finding it tough to sell quickly and for an optimal price. This is true even in markets that have enjoyed years of pricing trends that favored sellers.

Luxury holds its value
In Colorado's key resort areas such as Aspen, Vail and Steamboat Springs, the luxury housing market has changed rapidly since 2005. Even in a fluctuating economy, luxury homes in these markets have proven to be a viable asset.

In Aspen, for instance, the average vacation home sold for an average of $2.5 million in 2005. In 2008, that average jumped to more than $6.6 million. In Vail, buyers in 2005 could snag a resort property for less than $1 million. In 2008, the average jumped nearly 50 percent to $1.4 million. In Steamboat Springs, though, the change has been more gradual. Steamboat's average sales price in 2005 was about $600,000; in 2008, comparable properties could still be purchased for under $1 million.
An excellent time to buy … and a new way to sell
Despite the upward pricing trend in nearly all resort markets, buyers are discovering that a flood of second-home inventory means great deals on icon properties are out there.
Sellers are clamoring for buyers' attention, and the savviest of sellers are finding that marketing methods that rely on localized resources like the MLS simply aren't cutting it. Rather, many luxury sellers are finding value-driven buyers for their homes via a global platform that accelerates the luxury home marketing and sales process. With LegendaryHomeAuction.com, for example, buyers and sellers unite to buy and sell distinctive properties via live, real-time online auctions.

The online auction process — particularly the application of real-time technology — is proving to be a highly viable alternative to the traditional real estate sales process. Sellers say they are able to more quickly liquidate their second homes, which at the same time typically translates to exceptional values for price-conscious luxury buyers.

Although second home purchases did fade in 2008, the long-term demand actually looks quite favorable according to a report released in March 2009 by Lawrence Yun, chief economist for the National Association of Realtors.

In March of this year, the NAR reported that Yun's research indicates that large numbers of people are in their prime years for buying a second home. Currently, 39.2 million people in the United States are ages 50 to 59 — a group that dominated sales in the first part of this decade. An additional 44.8 million people are between 40 and 49, and another 40.7 million are 30 to 39.

The NAR reports:
"While economic factors can affect sales from one year to the next, the fundamental demand from these large population groups will remain," Yun said. "Given that most people become interested in buying a second home in their 40s, the bulge of population approaching middle age should drive the second-home market over the next decade."

For sellers, those demographics translate to a ready pool of buyers. The bottom line for buyers who can afford to step into the luxury home market: their stars have aligned — the timing is superb for locating a motivated seller with a one-of-a-kind resort property. And, thanks to innovative online methods that streamline and accelerate the luxury real estate transaction, you don't have to scour local MLS outlets to do it.

Whether you're a seller, a buyer or a real estate broker, learn how you can proactively keep pace with luxury home trends and technological innovations. Contact LegendaryHomeAuction.com at 303.440.4999 or Lauren@LegendaryGroup.com


adrin said...

Your post is excellent.

Boise real estate

house and lot for sale philippines said...

Great properties to have. Love the second photo.

Deirdre G