Breckenridge Real Estate 2009 Market Recap
QUICK REVIEW: For a real estate market with a 20-year average annual appreciation rate of 9%, real estate in Breckenridge during 2009 was out of character to say the least. As lending conditions become ever-more challenging, and the number of properties for sale increased, sellers had to reduce real estate prices to be competitive. After a few months of this trend, sales comps dropped and generated a real estate market with depreciating conditions. During 2009, Breckenridge’s and Summit County’s real estate markets experienced a “buyer’s market with depreciating values”. However, the smell of change is in the air for 2010 and buyers - this is your time to shine!
FULL MARKET OVERVIEW: The evidence is clear, market demand for Breckenridge real estate is demanding under-priced real estate. Everyone wants a deal. The only difference for 2009 was that some people got a deal. Inventory reached record highs and sellers lowered their expectations a bit, sometimes a lot. Though foreclosures in Breckenridge & Summit County are not abundant, foreclosures have been a regular occurrence and last year provided a higher number of distressed sales such as short sales, foreclosures, and motivated sellers accepting their losses. Roughly 280 properties entered the foreclosure process in Summit County with only 59 executed foreclosures. (Link for article)
Since Breckenridge and Summit County are largely secondary real estate markets (second home market), the nation’s economic effects sank in slower here than much of the country. In essence, economic turmoil hits home before it hits the second home. Initially, the market slowed in 2008 with the changes in lending policies. But it was the stock market crash in March that truly changed the face of real estate in Breckenridge. From February to June 2009, real estate related businesses of Breckenridge and Summit County had a desolate feel. The busy, summer real estate season brought about it’s typical rush, but it paled in comparison to other years. Finally an actual increase in sales near the end of the year showed signs of life for real estate in Summit County. Despite the 4th quarter increase in property sales, the total annual number of residential sales was down a staggering 32% from 2008’s total. Residential dollar volume spent was down 36% (similar drops to 2008 results). On a more inspiring note, sales of $2+ million homes rose 9.5% (up 2 from 21). (Click Here for detailed real estate statistics)