Vail Real Estate Sales Booming

First quarter real estate sales continue upward path

Positive first quarter real estate figures in Eagle County showed twice the volume compared with first quarter of 2009.

March saw the highest dollar volume month in over a year with $131 million in sales. This brings 2010 first quarter total to $318,726,934 which is more than twice the numbers of first quarter in 2009.

There were 102 transactions in March bringing the first quarter to 276; again nearly twice that of 2009 through the same period. Fourteen of these transactions were Westin Riverfront sales, totaling more than $6 million.

The high end market continues to move in March. There were 9 properties that each sold for over $5 million totaling $57,669,800.

Three contributing factors for the quick start to the year:

1. Westin Riverfront: 64 sales totaling $37,229,400
2. High end sales: 16 sales have sold for over $4 million, totaling $94,475,000
3. Bank owned sales: 17 totaling $13,578,900

March Highlights:

• 53 Multi-family homes sold for an average sales price of $990,296
• Properties over $2 million accounted for 62% of the total dollar volume
• Eagle County’s overall average sales price was $1,291,187

Aspen Real Estate Market Booming

The Telluride real estate market has historically followed the Aspen and Vail market trends about 6 months in arrears. FYI.

Summary for the month of March

• $103,247,244 total dollar volume, up 120% from March 2009
• 84 total transactions, an increase of 105% from March 2009
• Year to date, through March, dollar volume totals $207,733,603 – a decrease of 23% from the same time period last year
• Through March, transactions total 179, a decrease of 7.25% from the same time last year
• Aspen led the county with 31 transactions, interval sales totaled 14, Snowmass Village reported 13, Basalt reported 4, Old Snowmass reported 3, the remaining 19 transactions were quit claim deeds with an associated document fee
• Aspen’s total dollar volume was $52.37 million, Snowmass Village reported $38.26 million, Old Snowmass $6.587 million, Basalt $3.275 million, Intervals $2.642 million, the remaining $117,912 were quit claim deeds
• There were two notable residential sales for the month, both in Snowmass – one for $10 million and another for $9.04 million
• There were no sales in the month of March with a bank listed as the grantor, there have been 2 thus far in 2010
• The average single family sold price through the month of March is $3,712,121, a decrease of 24% from full year 2009
• The median single family sold price through the month of March is $4,100,000, an increase of 30% from full year 2009
  • Please see page 4 of the PDF for additional information by specific area of the county
• Interval dollar volume totaled $2.642 million, a decrease of 81% from March 2009
• Interval transactions totaled 14, a decrease of 39% from March 2009
• Hyatt Grand Aspen led with $918,000, followed by Timbers with $705,000, Ritz Carlton reported $470,000, St. Regis $350,000, and Sanctuary $199,000
• Hyatt led transactions with 6, Ritz Carlton reported 4, Timbers had 2, St. Regis and Sanctuary rounded out the total, each reporting 1
• Through March, interval dollars total $18,643,975, a decrease of 84% from the same time period last year
• Though March, interval transactions total 37, a decrease of 68% from the same time period last year
  • Recall that in early 2009 there was a lot of activity with both The Residences at Little Nell and Dancing Bear.  Through March of last year, the Nell had a total of 67 transactions and Dancing Bear had 25

Dual Carribbean Citizen via Property Purchase

Catherine Deshayes

7th Heaven Properties, a specialist in the sale of Caribbean properties, has seen sales enquiries up 60% in early part of 2010. Of these nearly 20% are a direct result of the Economic Citizen Partnership which allows purchasers to become island residents...

Under the Partnership agreement, people making a minimum investment of US$350,000 in a property or villa plot are entitled to apply for island Citizenship. Islands to realise the potential in allowing purchasers to become residents have quickly become hot spot destinations and include St.Kitts and Nevis, Dominican Republic, Belize and Dominica - with more to follow including St.Lucia, Grenada and St. Vincent and the Grenadines.

On the island of St Kitts, Oceans Edge (1 bedroom beachfront apartment) www.7thheavenproperties.com/property.asp?Id=541 is for sale for £252,736. Under the Economic Partnership Scheme the eventual purchaser will be in line to become a citizen of St Kitts for life with eligible family members also being given full residency status. Other benefits include:

· Dual citizenship opportunity

· Passports are issued to successful applicants and any eligible dependants

· Residency in St Kitts is not required

· Visa Free travel to a number of countries including European Schengen Countries

· Tax free status on foreign income, capital gains, gift, wealth and inheritance tax

· The right to work in St Kitts

As owner and director of 7th Heaven, Walter Zephrin explains: "In light of the downturn in the economy, increases in taxes across major economies and the significant drop in property value across the globe, the Caribbean remains a strong and vibrant investment option. The ECP provides property buyers and investors with an added incentive to purchase in the region. Having dual citizenship provides the buyer with ease of access to the destination, relocation alternatives and year round access to the sun and sea. Taxes in the Caribbean are generally lower and the region remains stable with diverse appeal."

To date the Caribbean has not suffered a development downturn in any way similar to many destinations.

The region's continuous drive to attract tourists to the islands all but guarantees property investors taking the buy to let option are sure of a sound investment. Walter Zephrin is establishing himself as a trusted and knowledgeable expert in the sales of Caribbean property as new client Rufus Gobat explains "I have known Walter personally for many years, and have always been impressed by his knowledge of the global property investment market and the Caribbean region in particular."

Naples Real Estate Market Improving

Naples Real Estate Market Statistics – April

by adeltarealty

in Naples Market Update

The Naples real estate market for the month of March is continuing to show strengthening. The buyer’s market continues, however, it weakening especially since last year.

HOMES:

Homes available for sale, as of March 31 – totaled 3784. Of this total 659 were potential short sales, and 136 were foreclosures. This translates to 10.8 months of inventory (normal market is between 5 and 7 months) versus last year 21.1 months. This statistic most clearer reflects the higher level of sales activity of homes in the Naples area.

A total of 366 homes closed in March. Last March a total of 318 homes were closed.

Pending sales for the month of March was 700 homes versus last March’s figure of 575 homes.

The median sold price for a single family home in the Naples in March was $244000 in a year over year comparison March 2009 saw the median sold price at $177200.

An indicator of future closed sales in addition to the current month’s pending sales, is the total number of pending sales. The total number of pending sales includes not only the current month (700), but also an cumulation of those homes which have not yet closed from previous months. The total pending sales as of the end of March was 1370 homes. Of the 1370 homes, 735 were potential short sales and 185 were foreclosed homes (bank/lender owned).

CONDOS:

Condos available for sale as of March 31 – totaled 4036. Of this total 426 are potential short sale condos and 83 foreclosures. This translates to 14.9 months of inventory versus last year’s 29.9 months.

A total of 377 condos closed in March versus last March where 263 condos were sold.

Pending sales for the month of March was 627 versus last March’s figure of 465.

The median sold price for a condo in the Naples area was $165000 compared to last year’s median of $164000.

The indicator of future closed sales in addition to the current month’s pending sales is the total pending sales. In March a total of 1141 condos were pending sale. Of this number, 529 were potential short sales and 81 foreclosures.

The statistics used for this post were taken from the Sunshine MLS on April 1st using data obtained for the month of March. The March data is primarily at this time, the final statistics are generally available on the fifth business after the end of the previous month.

London Luxury Market up 20%

London prices boom, 20% growth in 12 months (UK)
Thursday 1 April 2010
Knight Frank Prime Central London Residential Index - March 2010 result headlines:
* Prices for prime central London prices rose by 20% in the 12 months to the end of March 2010
* Prices are now rising at their fastest rate since March 2008
* Growth has been led by the lower to mid end of the central London market, with 24% growth for the sub-£2.5 mln. sector
* Prices are now only 9% lower than the March 2008 market peak
Liam Bailey, head of residential research, Knight Frank, commented: “The central London market has enjoyed boom-like conditions in recent months, at least in terms of prices, which rose by 20% in the 12 months to the end of March 2010. This growth has not been evenly spread, and it has been the low to mid end of the market, especially sub-£2.5 mln., which has seen the strongest growth (c 23%). The more expensive price brackets have lagged (c 17% for the £5mln. + sector), reflecting the fact that the recovery in pricing started later in this part of the market.

“The rate of price growth in March, at 0.7%, represents the slowest monthly rate of growth since last April, and suggests that price growth is beginning to slow on the back of higher supply and slightly weaker demand in the market. The balance between purchasers and vendors, has become more even in recent months. In the final quarter of 2009 our local offices recorded 10 new buyer registrations for every new sales instruction – well above the long run trend of 5.5. By March this ratio had dropped back to 7 as more vendors began to bring properties forward for sale on the back of rising prices, and also as buyers began to delay activity in the run up to the budget and the election.”

Global position
Bailey added, “The rapid growth in London’s pricing, reflects not only the stimulus given to the market from low interest rates and the weak pound – which have driven domestic and international demand – but also to very thin supply over the year, set against very healthy interest from buyers. However we can not overlook the importance of international buyers to the market – we reported in the recently released Knight Frank Wealth Report, that a record 49 nationalities bought residential property in central London in 2009. “Despite the result of our World Cities Survey, that London’s position as the leading global city had been ceded to New York, London prime residential market is still underpinned to a considerable degree by international demand – which appears to be rising not declining at the current time.”

Vacation Home Sales up in 2010

Vacation-Home Sales Up in 2009 but Investment Sales Down

Washington, March 31, 2010

(March 31, 2010) – Vacation-home sales recovered in 2009 while investment sales fell sharply, according to the National Association of Realtors®.


NAR’s 2010 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2009, shows vacation-home sales rose 7.9 percent to 553,000 last year from 513,000 in 2008, while investment-home sales fell 15.9 percent to 940,000 in 2009 from 1.12 million in 2008. Primary residence sales rose 7.1 percent to 4.04 million in 2009 from 3.77 million in 2008.


NAR Chief Economist Lawrence Yun said, “The typical vacation-home buyer is making a lifestyle choice, with nine out of 10 saying they intend to use the property for vacations or as a family retreat,” he said. “Investment buyers primarily seek rental income, with six in 10 planning to rent to others, although one in five wants a family member, friend or relative to use the home.”


Only one in four vacation-home buyers plan to rent their properties to others, while one in five investment buyers plan to use their homes for vacations or as a family retreat. However, 26 percent of vacation-home buyers and 8 percent of investment buyers intend to use the property as a primary residence in the future.


The market share of homes purchased for investment was 17 percent in 2009, down from 21 percent in 2008, while the vacation-home share rose a percentage point to 10 percent. The total share of second homes declined from 30 percent of sales in 2008 to 27 percent last year. “First-time buyers were at record levels in 2009 with fewer sales of second homes,” Yun said.


The median transaction price of a vacation home was $169,000 in 2009, compared with $150,000 in 2008. “The higher vacation home price may reflect increased sales in higher priced markets, particularly in areas of Florida and California where prices became highly attractive for buyers over the past year,” Yun said.


Half of vacation homes purchased last year were in the South, 21 percent in the West, 17 percent in the Midwest and 12 percent in the Northeast. Seven out of 10 were detached single-family homes.



The median investment property sold for $105,000 last year, down 2.8 percent from $108,000 in 2008. There were more investment sales in the West in 2009, consistent with reports in California of a high share of all-cash purchases, notably in lower price ranges.


The distribution of investment sales was fairly close to the distribution of population: 35 percent in the South, 25 percent in the West, 24 percent in the Midwest and 16 percent in the Northeast. There was a higher share of condos in investment sales: 27 percent of investment homes were condos vs. 21 percent of vacation homes.
Similar to 2008, cash factored strongly in the second-home market: three out of 10 vacation-home buyers in 2009 paid cash for their properties, while half of investment buyers paid cash. Fairly similar ratios for each group indicated portfolio diversification or good investment opportunities were factors in the purchase decision.


The typical vacation-home buyer in 2009 was 46 years old, had a median household income of $87,500, and purchased a property that was a median distance of 348 miles from their primary residence; 34 percent were within 100 miles and 40 percent were more than 500 miles.


Investment-home buyers last year had a median age of 45, earned $87,200, and bought a home that was relatively close to their primary residence – a median distance of 24 miles. Roughly one in four investment buyers purchased more than one property in 2009.


Three out of four second-home buyers were married couples.


Demographically, the long-term demand for second homes looks favorable because large numbers of people are in the prime years for buying a second home. “Historically, people become interested in buying a second home in their mid 40s,” Yun said. “The large number of people who are now in their 30s and 40s will dominate the second-home market in the coming decade with a strong underlying demand, although sales in a given year will vary depending on the economy. Mortgage lending for second homes was extraordinarily tight in 2009 but it is likely to ease a bit in 2010.”


Currently, 40.1 million people in the U.S. are ages 50-59 – a group that dominated sales in the first part of the past decade and established records for second-home sales. An additional 44.4 million people are now in the primary buying demographic of 40-49 years old, and another 40.6 million are 30-39.


Buyers were more likely to purchase investment homes within a metropolitan area, while vacation homes were generally located in a rural area, small town or resort.


Vacation-home buyers plan to keep their property for a median of 16 years while investment buyers plan to hold their property for a median of 12 years.



NAR’s analysis of U.S. Census Bureau data shows there are 7.9 million vacation homes and 41.1 million investment units in the U.S., compared with 75.0 million owner-occupied homes.


NAR’s 2010 Investment and Vacation Home Buyers Survey, conducted in March 2009, includes answers from 1,930 usable responses. The survey controlled for age and income, based on information from the larger 2009 NAR Profile of Home Buyers and Sellers, to limit any biases in the characteristics of respondents.


The 2010 Investment and Vacation Home Buyers Survey can be ordered by calling 800-874-6500, or online at www.realtor.org/newresearch. The report is free for NAR members, but the cost is $125 for non-members.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.


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Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.

Investors are buying resort houses again

--------------------------------------------------------------------------------
Investors Are Buying Houses Again

Posted: 23 Mar 2010 07:40 AM PDT

Good news for the second-home market. What’s happening in your area?

More home buyers are snapping up properties with cash, a trend driven in large part by investors returning to the market after four years of falling prices around the country.

The share of home sales involving all-cash transactions was 26% in January, up from 18% a year earlier, according to the National Association of Realtors. The figures come from a survey of members about their most recent transactions. Many home buyers also are paying cash, but investors are largely using cash so they can avoid paying interest charges on loans and get a larger return on their investment.

Other NAR data also show a pickup in investment activity.

Home purchases made by buyers identified as investors climbed to 17% in January, up from 15% in December and 12% in November.

“We bottomed out in 2008, and in late 2009, prices stabilized and investors have returned,” says Mark Fleming, chief economist at First American CoreLogic. “It’s a different type of investor going after foreclosed properties and expecting to hold on for longer time frames.”

Many investors say they’re financing their purchases with cash on hand, rather than borrowing.

Evan Spinrod of San Francisco bought three rental properties in November and February and now owns 21 in four states. The rent he collects gives him an 8.5% annual return on his investment. Some of his homes are worth about $165,000. “I’m still looking,” Spinrod says. “You can’t build these houses for the prices they’re selling them. I’ve always seen that the real wealth was in real estate. People have been sitting on cash, and there’s no interest from the bank (to pay).”

Leonard Baron, a real estate professor at San Diego State University, has bought three homes with cash in the

San Diego area in the past eight months, ranging in price from $100,000 to $130,000. He rents the properties.

Baron says now is an ideal time to make such purchases. “It’s because prices have dropped so much and rents really haven’t,” he says. “The deals were unbelievable.”

Some Realtors also say they’re seeing increased investor activity.

“Flippers, rehabbers, investors … are, in fact, buying,” says Lisa Johnson, with Coldwell Banker Residential Brokerage in Haverhill, Mass. “I’m getting builders who have stopped building and are instead buying up condos and single-family homes to fix them up and sell them. It’s a neat change I haven’t seen in four years.”

All-cash purchases also reflect a growing number of investors buying higher-end properties without credit, says NAR spokesman Walter Molony. That’s a sign that some investors see real estate prices as having nowhere to

go but up. All-cash offers give buyers a competitive edge on rival offers – even higher ones – that are dependent on financing. Cash deals can close faster and are less likely to fall through.

“You have to have cash to be able to close quickly and have negotiating power. Cash is king,” says Tanya Marchiol, president of Phoenix-based Team Investments, which buys about 70 properties a month with cash it raises from investors. “We do want to flip it or generate cash flow (through renting it out). Now is the time to buy for cash flow. We know the market is going to rebound.”

Some investors say the current real estate market is an ideal time to buy because homes are so low priced, they are bound to hold their value.

That’s the philosophy of Jim McClelland of Tinley Park, 111.

He is buying about 120 to 150 entrylevel homes in the Chicago area this year and owns a total of about 300 properties.

He says now is a good time to buy because properties going into foreclosure are no longer just one-bedroom, fixer-uppers but nicer, split-level brick homes with more bedrooms that will probably appreciate to a higher value.

That’s because so many prime-rate borrowers who bought more expensive homes have gone into foreclosure.

He puts about $60,000 into upgrading a property, then rents it out.

“Do I think this year will be a better time to invest than in 2009? Yes,” McClelland says. “There have always been foreclosures. The difference now is you get a better home for the same kind of money. You’re sitting on better inventory. People get into real estate for financial independence. It’s not a quick fix. It appreciates. It doesn’t happen overnight.”

By Stephanie Armour USA TODAY