Colorado Resorts Feel Housing Squeeze

By Courtney Lowery, 7-22-08

Interesting story this week from the Denver Post’s Jason Blevins on who’s feeling what parts of the housing downturn at Colorado’s ritziest resorts.

The nut:

The number of home sales in Colorado’s resort communities has plummeted anywhere from 30 percent to more than 50 percent, a rare downturn in a market that has historically flourished. Resort markets that include Vail, Aspen, Steamboat, Telluride and Breckenridge are enduring record declines, according to Land Title Guarantee, which tracks sales in the high country.

Prices are still up though, and some are using those stats to maintain optimistic about the high-end Colorado market, and others say the highest of the high-end isn’t feeling any pain at all.

A broker quoted in Blevin’s story says, “When there are 50 $50 million jets at the Aspen airport over July Fourth, you realize there is a certain level of resident here who is not seriously affected by the ups and downs of the base economy.”

But wait just a minute. Those price increases are nothing without context. Byron Koste, at the University of Colorado, says when looking at the average home price, you have to consider that if less homes are sold, that average can be inflated by just a few big sales.