Corporate travel is making a comeback to Vail resorts. Year-over-year bookings for corporate travel are up 14 percent from last year. This is great news for everyone in the tourism industry!
A number of key indicators are showing luxury home sales across Colorado on the rise. Certainly it has been a great fall and early winter for sales in the Vail and the surrounding resort towns. According to the Land Title November 2011 Market Analysis, sales were up 110% at the end of 2011 compared to 2010, with November sales continuing the upward market trend.
According to a report on the Denver luxury real estate market, luxury home sales in the Denver metropolitan area have also continued to rise. Home prices jumped 8 percent, and luxury home sales are now at their highest level since August 2008.
The median sale price of million-dollar homes reached $1.35 million in December, up 8 percent from December 2010 when it stood at $1.25 million and 8.4 percent higher than November 2011 when it was $1,245,000.
Sellers on average received 92.3 percent of their asking price compared to 90.3 percent a year earlier.
41 homes sold for more than $1 million and the number of multi-million-dollar sales edged higher to nine up from five in November and eight in December 2010.
Positive trends in other markets are contributing to the luxury real estate recovery. Interest rates are likely as low as they will drop. Averaging 3.89 percent, the 30-year fixed rate has been at or below 4 for the past three months. Only twice in 2011 did it average above 5 percent. Those are numbers we like to see!
Like the economy itself, the recovery in the housing market is coming in fits and starts. But the numbers highlighted here indicate that we’re significantly ahead of where we were a year or two ago – and that’s reason for optimism.
Earlier in this newsletter, I discussed why now is the time to purchase a vacation rental. Here are some tips from HomeAway, one of the nation’s largest vacation rental portals dedicated to privately owned listings , to help make sure renting your second home to vacationers is as profitable and easy as it can be.
Check local regulations. Last year, New York City, passed a law outlawing apartment rentals for less than 30 days. This law is designed to improve the quality of life in traditional residential apartment buildings, but it will definitely restrict short-term vacation rentals in Manhattan. Condominiums may also be subject to homeowner association rules.
Decide to “handle it yourself” or outsource. Renting by owner is not for everyone. You will need to handle marketing, booking, banking, bookkeeping, housekeeping and repairs. Determine if you have the time. If not, hire a property manager.
Price it right. Check out what other properties in the area are charging and price your property accordingly. Also consider checking local hotel rates when determining what to charge. Monitor for holidays, school schedules, peak and off-peak season and adjust your rate according.
Fill the pantry. Nothing says “home” like a kitchen stocked with the basics and essentials to cook. Sufficient bedding is a must. And, nowadays, the latest appliances including a flat screen television and gaming console are essential when marketing to families.
Advertise the area. Create easy-to-read, check-in, check-out instructions, directions to your property and directions from your property to the “best” area attractions, events and other attractions. Provide a book of instructions for appliances and other property elements, as well as emergency and maintenance contacts sheet.
There are multiple reasons why vacation home are almost always a good investment. Real estate has historically been a solid investment. Vacation properties have the ability to pay for themselves; owners can even earn a profit in rental incomes. And, these investments come with the perk of having a location for your own vacations.
So, if vacation rentals are historically a good investment; why is there growing buzz that now is that time to invest?
Prices are low
Property prices are as low as they have been in ten years. Procrastination is not going drop prices or keep them low. Analysts have indicated that the market has hit bottom and will continue to move up. Inventory is high and opportunities are plentiful.
Interest rates are low
Interest rates are likely as low as they will drop. Averaging 3.95 percent, the 30-year fixed rate has been at or below 4 for the past two months, and only twice in 2011 did it average above 5 percent. So, rates are low, but we are beginning to see indicators that they may not stay low indefinitely.
Renting out a Property has Never Been Easier
Thanks to the internet, it has never been easier to rent out a vacation property. Multiple online vacation rental portals help owners market homes by posting photos, descriptions, testimonials and other marketing information to attract vacationers. Buying now will allow you ample time to determine when you want to rent your property for the 2012 season. You deserve some vacation time in your new property too! Once you have blocked off time for personal use, you can begin advertising your fabulous property. Most inquires for rentals come between January and March as vacations are planned for the year. And with Vail’s expected snow fall this year, now is that time to plan for next year’s rental season. You can’t buy the publicity Vail’s snow layer will provide you for free.
To recap: it is still a very strong buyer’s market. If you have been thinking about buying in the Vail Valley, now is the time! It has been a great fall and early winter number wise in the Vail Valley. Sales are up 110% from last year at this time. We predict that 2011 is the window to buy in – before we are back to a Seller’s Market! For more information on vacation rentals, see this article.
For more information on listings in the Vail Valley, contact me at (970) 331-1806.
This month I am pleased to offer a beautiful property, The Lodge at Brookside, which really is an unbelievable value (and a chance to own a “piece” of Seinfeld).
We all know that in Vail – even more than in other places – it’s about location, location, location. And this condo has it. It is located just minutes from Vail at the very base of Beaver Creek. The condo boasts unbelievable mountain views and easy access to the slopes – an unbeatable combination!
Feel like world traveler J. Peterman when you visit this cozy, quiet and well-appointed condo. Watch The English Patient while sitting in front of the fire as the snow falls outside your balcony on the slopes. Yada, yada, yada, what more can I say? Priced at an unbelievable $699,000 this 3 bedroom, 3 bath condo is sure to be snatched up faster than soup from a certain cranky proprietor.
