Laura Maggos Properties

2012 Market Summary

With 2013 off to a quick start, we are just now reviewing all of the 2012 statistics and confirming what we have been witnessing in our market: real estate transactions and prices are on an uptick in Aspen.
The dollar amount of real estate transactions in Pitkin County in 2012 was $1.47 billion. This is the highest dollar amount recorded annually since the prerecession year of 2007. From 2008-2011, the dollar amount of real estate transactions in Pitkin County were $1.37 billion, $1 billion, $1.26 billion, and $1.27 billion respectively.  The increase can be attributed not only to an improving economy, but two other factors:
 

  1. The changes to the capital gains tax realized in 2013 triggered many sellers, especially those that would have a substantial capital gain, to negotiate on their price if they could record a sale of the property in 2012.  This likely came into play with two of the largest commercial transactions of 2012: the sale of the Volk Building for $22,000,000 and the sale of the Mountain Plaza Building (houses the Gap) for $17,250,000.  Sales in Pitkin County in December alone totaled $233,470,000.
  2. Newly constructed homes in the sales inventory have decreased substantially, especially in the high end market above $10,000,000 where buyers are searching for the winning combination of an outstanding location and a newly built home.  With the dwindling supply came a bit more urgency on the part of buyers to purchase what was remaining.  Sixteen single family homes in Aspen priced above $10,000,000 sold in 2012, and there has already been one sale of a single family home for $15,000,000 in January (Laura was the listing broker).

The lack of supply in the $10,000,000 and above range has also affected the sales of single family lots in Aspen.  There were twenty-five single family lots sold in Aspen in 2012, compared to only eleven in 2011. Additionally, the average price for a single family lot increased to $2,920,227 from $1,893,682 in 2011.  The increase in lot sales can be attributed to high end buyers choosing to build because they cannot find their perfect home.  Additionally, many developers are feeling confident in the market and believe the time is ripe to build.
Although the ultra high-end market is the most commented upon in local and national real estate news, the improvements have reached the entire Aspen market.  The number of transactions for condominiums and townhomes increased from 110 in 2011 to 133 in 2012: an 18% increase.
Because the market is shifting, it’s an opportune time for Sellers to list their property, especially if they have a new or newly remodeled property.  Please contact us if you would like a Comparative Market Analysis for your property.
There are also a few new standouts on the local Aspen scene this season.  They include Element 47, the new restaurant at the Little Nell and The Hotel Jerome which was completely renovated and made its grand debut in December.
We look forward to seeing you in Aspen this season.  Please contact us with any requests.