Aspen Snowmass Colorado 2009 Real Estate Market Prices

Forbes magazine annually publishes a compilation of median sales prices of residential real estate by zip code. The purpose is to annually answer the question "Where are the most expensive places to live in the United States?". Given today's economic down turn, not surprisingly, the median prices of many of the most expensive zip codes have declined in 2009 compared with 2008. The median prices in the Forbes list reflect the combination of both single-family-houses and condominiums.

Four Colorado zip codes made the Forbes top-100 -- three in the Aspen area (#13, #20 and #82) and Vail (#87).

Zip code 81654 is ranked #13. This zip code includes "Old" Snowmass and the surrounding rural area. The population density is 13-people per square mile -- not exactly Manhattan. The median price as of August 2009 was $2,997,000. This represents a 3%-decline from 2008. Such a small decline in this economy is quite an accomplishment. The average number of days a property is on the market before it sells for this zip code is 240-days.

Zip code 81611 is ranked #20. The City of Aspen is primarily included in this zip code together with some outlying areas. The population is 31-people per square mile. Without the outlying areas, the population density would be higher. The August 2009 median price was $2,737,000 which is a 22%-decline from the prior year. A portion of this decline is directly attributed to a change in the mix of single-family-houses to condominiums between years. During times of economic hardship, the sale of less expensive properties is not as impacted as that of higher-priced properties thus reducing the median price. The average number of days on the market is 233-days.

Zip code 81615 is ranked #82. This is the zip code for Snowmass Village, the location of the Snowmass Ski Resort. The population density is 75-people per square mile which reflects the increased density of the resort setting and higher mix of condominiums in relationship to single-family houses. The median price was $1,757,000 as of August 2009. This represents a 25%-decline in the median price compared with 2008. The change in the property-type mix contributed to the decline in the median price as it did in Aspen. The average number of days on the market is 213-days.

Snowmass Village is a ski resort community comprised of primarily second-homes. Old Snowmass is home to many full-time residents and some large acreage ranches. Aspen is a mix of full-time residents and second-homes. The composition of owners correlates to the decline in the median prices. Full-time residents are less likely to sell their homes in economic down turns than are second-home owners. In such times as we are now experiencing, there are fewer full-time residents that are looking to sell or need to sell their homes as compared to second-home owners. A second-home is a distinct luxury more likely to be sold during an economic down turn than is a person's primary residence.

In contemplating a recent sale of Aspen real estate, someone remarked to me that they could only imagine the seller's disappointment to have purchased the property when Aspen real estate prices were near their peak and now finding themselves losing money selling their home in today's Aspen real estate market. I suggested perhaps not. I reasoned that had the seller remained invested in the stock market rather than purchase Aspen real estate, they may have suffered an even greater loss in the stock market. In hindsight, perhaps the real estate was a better investment.

Analyzing the cause of the decline in median price is further complicated by the nature of the owner/seller. Second-home buyers tend to be more likely to purchase their property with all-cash rather than financing the purchase directly with a mortgage. This can mean that they are able to weather the economic storm and hold their investment real estate, or it can mean that they need to sell their investment real estate to satisfy a personal financial crisis or liquidity problem. Short of interviewing every owner/seller, there is no way to know the exact impact, other than to know that it is one more factor that impacts median price.

Rex Manz is a Colorado Realtor that assists home buyers in the purchase of Aspen, Snowmass Village, Old Snowmass, Woody Creek, Basalt, Emma and El Jebel Colorado ski real estate, ranches, homes and condos. Please visit his web site Beautiful Aspen Homes.com to learn more about Aspen area real estate prices. Rex and his associates also provide personal service in the purchase of ski homes and ski condos in other Colorado ski resorts including Breckenridge and Vail.