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Flashback to 2006-2007?
“Real estate market sees major boost in July sales”. That was the front page headline in last week’s Crested Butte News. Huh? A
major boost in real estate sales while most other markets are still slumping? Actually, it makes sense and is correct.
Recently, a house in town sold for $2 million, an all time record sale for a house in the town of Crested Butte proper. Just the other
day, a commercial parcel well located in the town entrance was put under contract. This is after having been actively on the market
for over 5 years!
What is going on here? You wouldn’t ordinarily expect a second home market to rebound before many primary home markets,
especially in this economy. But people are becoming value conscious, not only in everyday purchases, but also in investments. Why buy
into a mature ski resort market such as Aspen or Vail, when there is much more opportunity here in Crested Butte? Houses are much
more affordable in comparison, and with the Denver traffic to the I-70 corridor ski areas being what it is, driving time to Crested Butte
isn’t dissimilar from Vail. This place is also, in my opinion, much more beautiful, special and rare. No dead pine trees from bark beetles
either.
Last week I hiked to Aspen with some friends. We do this trip every year, and this year the wildflowers were better than ever making
us feel like Lilliputians in a sea of gigantic blooms at shoulder level and higher. The odd thing was that in Aspen, things were very
quiet. All the restaurants had availability without reservations established beforehand. One gallery we visited wasn’t even going to
open that evening due to how quiet the summer had been. It was an amazing contrast to come back to CB the next day and
experience a robust, vibrant Elk Avenue, and this a few days before the crowds showed up for Arts Festival.
It seems to me that between the affordability, inherent beauty and laid back nature of Crested Butte, we are starting to become
“noticed” and “discovered”. Our summers are splendid, never too hot, often requiring a sweater in the evening. People are here from
hotter climes, getting out into nature without worry of heat stroke within minutes. I just had friends in town from North Carolina.
They were out and about with their children every minute of every day, hiking, biking, climbing, skateboarding, etc. things made
much more difficult at home due to the heat and humidity, as well as the constant checking for deer ticks. We don’t have those here.
I felt very fortunate that I get to live in this paradise and that more and more people are coming here to enjoy it too.
- Diane 8/06/09
“Real estate market sees major boost in July sales”. That was the front page headline in last week’s Crested Butte News. Huh? A
major boost in real estate sales while most other markets are still slumping? Actually, it makes sense and is correct.
Recently, a house in town sold for $2 million, an all time record sale for a house in the town of Crested Butte proper. Just the other
day, a commercial parcel well located in the town entrance was put under contract. This is after having been actively on the market
for over 5 years!
What is going on here? You wouldn’t ordinarily expect a second home market to rebound before many primary home markets,
especially in this economy. But people are becoming value conscious, not only in everyday purchases, but also in investments. Why buy
into a mature ski resort market such as Aspen or Vail, when there is much more opportunity here in Crested Butte? Houses are much
more affordable in comparison, and with the Denver traffic to the I-70 corridor ski areas being what it is, driving time to Crested Butte
isn’t dissimilar from Vail. This place is also, in my opinion, much more beautiful, special and rare. No dead pine trees from bark beetles
either.
Last week I hiked to Aspen with some friends. We do this trip every year, and this year the wildflowers were better than ever making
us feel like Lilliputians in a sea of gigantic blooms at shoulder level and higher. The odd thing was that in Aspen, things were very
quiet. All the restaurants had availability without reservations established beforehand. One gallery we visited wasn’t even going to
open that evening due to how quiet the summer had been. It was an amazing contrast to come back to CB the next day and
experience a robust, vibrant Elk Avenue, and this a few days before the crowds showed up for Arts Festival.
It seems to me that between the affordability, inherent beauty and laid back nature of Crested Butte, we are starting to become
“noticed” and “discovered”. Our summers are splendid, never too hot, often requiring a sweater in the evening. People are here from
hotter climes, getting out into nature without worry of heat stroke within minutes. I just had friends in town from North Carolina.
They were out and about with their children every minute of every day, hiking, biking, climbing, skateboarding, etc. things made
much more difficult at home due to the heat and humidity, as well as the constant checking for deer ticks. We don’t have those here.
I felt very fortunate that I get to live in this paradise and that more and more people are coming here to enjoy it too.
- Diane 8/06/09
No Nukes 9/4/09 - Diane's Blog
All of the indications we are getting from the US economy show that things aren't as bad as we had been led to believe. Unemployment
is slowing down, the latest rate of 9.7% is well below the 25% number economists were bandying about a few months ago. Although the
Federal Reserve's stimulus packages should have an extreme inflationary effect, that effect seems relatively muted so far. Oil had been
around $75 last week, and now is below $68. Gold still hasn't penetrated that psychological $1000/ounce level. Happily, mortgage rates
have come down to around 5.08% for a 30 year fixed rate today, from around 6.35% a year ago. Consumer confidence is rising and there
is somewhere around $5 trillion on the sidelines (not yet invested) waiting for the right time to enter the market.
This news is actually quite good for the real estate market: low interest rates, low real estate prices and high supply, while the
economy is bottoming out and starting to rise. I liken this scenario to a nuclear scare. We were all told that the big one had hit and
battened down in our fall out shelters. People are starting to peek out of the shelter now, albeit while still wearing their gas masks.
Once more people start to poke out their heads, they will see that the world around them hasn't ceased to exist, it was just a bad dust
storm.
With all of the money currently waiting to be put to use in the US economy and a somewhat lower dollar value, now is a great time to
buy. Some sellers are still feeling pressured to sell, and there are some great deals out there. When more people start poking out their
heads and pulling off their gas masks, we will see a nice recovery. The only thing currently needed is bank lending. Banks have really
pulled back from their mission (i.e. lending) but if they can peek out and pull off their gas masks too, the real estate market will be
raring to go!
All of the indications we are getting from the US economy show that things aren't as bad as we had been led to believe. Unemployment
is slowing down, the latest rate of 9.7% is well below the 25% number economists were bandying about a few months ago. Although the
Federal Reserve's stimulus packages should have an extreme inflationary effect, that effect seems relatively muted so far. Oil had been
around $75 last week, and now is below $68. Gold still hasn't penetrated that psychological $1000/ounce level. Happily, mortgage rates
have come down to around 5.08% for a 30 year fixed rate today, from around 6.35% a year ago. Consumer confidence is rising and there
is somewhere around $5 trillion on the sidelines (not yet invested) waiting for the right time to enter the market.
This news is actually quite good for the real estate market: low interest rates, low real estate prices and high supply, while the
economy is bottoming out and starting to rise. I liken this scenario to a nuclear scare. We were all told that the big one had hit and
battened down in our fall out shelters. People are starting to peek out of the shelter now, albeit while still wearing their gas masks.
Once more people start to poke out their heads, they will see that the world around them hasn't ceased to exist, it was just a bad dust
storm.
With all of the money currently waiting to be put to use in the US economy and a somewhat lower dollar value, now is a great time to
buy. Some sellers are still feeling pressured to sell, and there are some great deals out there. When more people start poking out their
heads and pulling off their gas masks, we will see a nice recovery. The only thing currently needed is bank lending. Banks have really
pulled back from their mission (i.e. lending) but if they can peek out and pull off their gas masks too, the real estate market will be
raring to go!
Traffic jams are the bane of industrialized countries. Just when you get a great job, you are forced to sacrifice your mental health with
the trial of commuting. I've commuted at various times in my working life. When I worked in New York City, I commuted from both the
Upper West Side and Connecticut. Back then, taxis were the mode of choice within the city, now, not so much. Commuting from
Connecticut on the train wasn't bad, it gave me time to read a newspaper or two (remember newspapers?) or nap. I couldn't have done
that if I drove to work. In London, I commuted by car mostly, getting a ride from a colleague and dealing with stop and go traffic without
the stress of the taxi meter constantly ticking. San Francisco living was miraculously without traffic. I'd get into my car and be at work
within 10 minutes, no traffic at all! That was at 4:45 am however; people who worked normal hours had to cope with normal traffic.
Living in Crested Butte is a different existance altogether. There is vehicular traffic on Highway 135 from CB South to Crested Butte, but
only on powder days. There are lift lines too - again, only for an hour or two on powder days. More than 90% of the time there is less than
a five minute wait on any lift line. Yesterday was a first for me. Halted traffic on Kebler Pass. I sat for fifteen minutes without moving
more than 100 feet. I was in a hurry to get to an appointment. The old stress of being uncomfortably stuck in a situation beyond my
control resurfaced. The taxi meter wasn't ticking, but the time before my appointment was ticking away loudly in my ears. I hate to be
late.
For the first time in my life, I took control of the traffic situation that was seemingly beyond my control, got approval from the guy on the
horse and started to take control of my own destiny. I very slowly and carefully drove my car forward through the sheep herd.
Miraculously, they parted like the Red Sea and in less than a minute I was through the herd and on my way.
Boy do I love this place!
the trial of commuting. I've commuted at various times in my working life. When I worked in New York City, I commuted from both the
Upper West Side and Connecticut. Back then, taxis were the mode of choice within the city, now, not so much. Commuting from
Connecticut on the train wasn't bad, it gave me time to read a newspaper or two (remember newspapers?) or nap. I couldn't have done
that if I drove to work. In London, I commuted by car mostly, getting a ride from a colleague and dealing with stop and go traffic without
the stress of the taxi meter constantly ticking. San Francisco living was miraculously without traffic. I'd get into my car and be at work
within 10 minutes, no traffic at all! That was at 4:45 am however; people who worked normal hours had to cope with normal traffic.
Living in Crested Butte is a different existance altogether. There is vehicular traffic on Highway 135 from CB South to Crested Butte, but
only on powder days. There are lift lines too - again, only for an hour or two on powder days. More than 90% of the time there is less than
a five minute wait on any lift line. Yesterday was a first for me. Halted traffic on Kebler Pass. I sat for fifteen minutes without moving
more than 100 feet. I was in a hurry to get to an appointment. The old stress of being uncomfortably stuck in a situation beyond my
control resurfaced. The taxi meter wasn't ticking, but the time before my appointment was ticking away loudly in my ears. I hate to be
late.
For the first time in my life, I took control of the traffic situation that was seemingly beyond my control, got approval from the guy on the
horse and started to take control of my own destiny. I very slowly and carefully drove my car forward through the sheep herd.
Miraculously, they parted like the Red Sea and in less than a minute I was through the herd and on my way.
Boy do I love this place!
| 970-209-0405 |
| Crested Butte Realty |
Picasso Painting Sets Auction Record
Wednesday, 05 May 2010 07:57
I found the news this morning that a Picasso set an auction record last night a very interesting fact in this economy. With the
unending doom and gloom surrounding not only the US economy, but the world's economy, the news that an intense bidding war
propelled a 5 x 4 foot painting to sell for over $106 million is quite a statement about where we really are economically.
The US economy is showing other signs of renewed spirit. The economic statistics have been showing signs of improvement.
Consumer spending has been rising. Job numbers are starting to improve, and I am hearing that real estate in urban areas is
picking up quite nicely.
For those of us who deal in real estate in resort communities, i.e. second home markets, these signs are encouraging, but we have
yet to see the actual numbers picking up. I liken this to the tail of the dog. The dog is showing improved health, but he doesn't
start wagging his tail until he is all better. Our market is the tail of the dog. When people are under financial duress, they do all
they can to protect their primary residences. The second home market, unfortunately, won't show signs of improvement until
after the primary home market improves. We are seeing that now, so hopefully an uptick in our market isn't too far behind.
Back to the painting. The commission for Christie's on the sale of this painting was 12%, or approximately $11.4 million. Not even
considering the outright sales price of the singular work of art, let us examine only the commission on this sale. $11.4 million in
Crested Butte real estate can buy you a $4,750,000 spectacular house on 35 acres close to town. It is over 9000 square feet, has
high end finishes and spectacular views overlooking Long Lake. $5.9 million can buy you a ski-in ski-out house that has the finest
details in finishes on 1.5 acres, and its own indoor pool and putting green. Or, you could buy both houses and still have $750,000
left for furnishing them, including the artwork.
(Crested Butte real estate agent Diane Aronovic is a former Managing Director at Bank of America Securities, and a real estate
agent at Red Lady Realty in Crested Butte, CO)
Wednesday, 05 May 2010 07:57
I found the news this morning that a Picasso set an auction record last night a very interesting fact in this economy. With the
unending doom and gloom surrounding not only the US economy, but the world's economy, the news that an intense bidding war
propelled a 5 x 4 foot painting to sell for over $106 million is quite a statement about where we really are economically.
The US economy is showing other signs of renewed spirit. The economic statistics have been showing signs of improvement.
Consumer spending has been rising. Job numbers are starting to improve, and I am hearing that real estate in urban areas is
picking up quite nicely.
For those of us who deal in real estate in resort communities, i.e. second home markets, these signs are encouraging, but we have
yet to see the actual numbers picking up. I liken this to the tail of the dog. The dog is showing improved health, but he doesn't
start wagging his tail until he is all better. Our market is the tail of the dog. When people are under financial duress, they do all
they can to protect their primary residences. The second home market, unfortunately, won't show signs of improvement until
after the primary home market improves. We are seeing that now, so hopefully an uptick in our market isn't too far behind.
Back to the painting. The commission for Christie's on the sale of this painting was 12%, or approximately $11.4 million. Not even
considering the outright sales price of the singular work of art, let us examine only the commission on this sale. $11.4 million in
Crested Butte real estate can buy you a $4,750,000 spectacular house on 35 acres close to town. It is over 9000 square feet, has
high end finishes and spectacular views overlooking Long Lake. $5.9 million can buy you a ski-in ski-out house that has the finest
details in finishes on 1.5 acres, and its own indoor pool and putting green. Or, you could buy both houses and still have $750,000
left for furnishing them, including the artwork.
(Crested Butte real estate agent Diane Aronovic is a former Managing Director at Bank of America Securities, and a real estate
agent at Red Lady Realty in Crested Butte, CO)
Market Bottom?
The first question on many people's minds when they initially realize that a market is going down is,
"where is the bottom?" People have been asking that about the stock market and the real estate market
for a couple of years now. Chartists pontificate about various chart shapes and how they are the predictors
of future trends. Is the recession going to be U-shaped, V-shaped or W-shaped?
The truth of the matter is that no one knows for sure and won't know until way after the fact. The
duration and depth of any market tumble or recession can't be known until we are in the next phase.
Currently there is a great deal of discussion about defining the present economy and markets and many
people are calling a bottom, middle, end, or calling for a crash or rally.
The proper way to evaluate your timing in any market takes into account many other factors. Personal
factors about cash flow and savings, job security and risk tolerance. If you are looking for a mortgage, rates
and availability of loans for the specific type of loan you seek.
So my point is, when someone claims it's the market bottom, the reality is, they are guessing unless they
have a time machine. A more important question is, "Is this a good time for me to buy?" I think anytime in
the next couple of years will be a good time to buy real estate, if it is a good time for you. Low interest
rates and low house prices create an opportunity and if you have been considering a real estate purchase
for the past couple of years, this is a good time. Will there be a better time in the future? Maybe, maybe
not. Interest rates and relatively low prices are starting to
attract buyers, but there is also good supply available. My feeling is that now is a good time to look, and if
you find the right property at the right price, it's a good time to buy. If you can't find what you are looking
for, you will probably have the opportunity to continue shopping for at least a short while until you do.
But try to avoid trying to buy at "the bottom." It's not a good use of time worrying about whether you
captured the absolute best price or not, especially in real estate. Currently, there is enough desperation
from sellers that great prices are currently negotiable and the rule of thumb I use is that if you are within
10% of the low price, you have done pretty well. Also, unlike the stock market, you can't pinpoint a
specific time or price at which the real estate market "bottoms." If it works for you and feels like a good
time, now is a good a time as any, and one thing I will guarantee is that it is not the top.
(Crested Butte real estate agent Diane Aronovic is a former Managing Director at Bank of America
Securities, and a real estate agent at Red Lady Realty in Crested Butte, CO)
The first question on many people's minds when they initially realize that a market is going down is,
"where is the bottom?" People have been asking that about the stock market and the real estate market
for a couple of years now. Chartists pontificate about various chart shapes and how they are the predictors
of future trends. Is the recession going to be U-shaped, V-shaped or W-shaped?
The truth of the matter is that no one knows for sure and won't know until way after the fact. The
duration and depth of any market tumble or recession can't be known until we are in the next phase.
Currently there is a great deal of discussion about defining the present economy and markets and many
people are calling a bottom, middle, end, or calling for a crash or rally.
The proper way to evaluate your timing in any market takes into account many other factors. Personal
factors about cash flow and savings, job security and risk tolerance. If you are looking for a mortgage, rates
and availability of loans for the specific type of loan you seek.
So my point is, when someone claims it's the market bottom, the reality is, they are guessing unless they
have a time machine. A more important question is, "Is this a good time for me to buy?" I think anytime in
the next couple of years will be a good time to buy real estate, if it is a good time for you. Low interest
rates and low house prices create an opportunity and if you have been considering a real estate purchase
for the past couple of years, this is a good time. Will there be a better time in the future? Maybe, maybe
not. Interest rates and relatively low prices are starting to
attract buyers, but there is also good supply available. My feeling is that now is a good time to look, and if
you find the right property at the right price, it's a good time to buy. If you can't find what you are looking
for, you will probably have the opportunity to continue shopping for at least a short while until you do.
But try to avoid trying to buy at "the bottom." It's not a good use of time worrying about whether you
captured the absolute best price or not, especially in real estate. Currently, there is enough desperation
from sellers that great prices are currently negotiable and the rule of thumb I use is that if you are within
10% of the low price, you have done pretty well. Also, unlike the stock market, you can't pinpoint a
specific time or price at which the real estate market "bottoms." If it works for you and feels like a good
time, now is a good a time as any, and one thing I will guarantee is that it is not the top.
(Crested Butte real estate agent Diane Aronovic is a former Managing Director at Bank of America
Securities, and a real estate agent at Red Lady Realty in Crested Butte, CO)
fax (970) 349-5463
