Purchasing an Aspen home is a lifestyle decision as well as a financial one. If you’ve ever considered buying a new home, second home or rental property in Aspen, then right now might be the perfect time to invest, as the Aspen market has turned the corner it seems … and the market is improving.
Get in while you can. Through the 2nd quarter (first half) of 2014, the Aspen market is on the rise. Yes, it finally may be the upward turn everyone’s waited for, as for-sale properties are starting to dwindle in the Aspen market. In short, there’s more demand for properties and buyer confidence is improving. Those properties that could benefit the most are new, unique high-quality or newly remodeled properties in some of Aspen’s more popular neighborhoods.
Let’s take a closer look at the current Aspen market by the numbers. There are numerous positive factors:
- Aspen units are hard to come by. The spread between Aspen listing inventory and sales is narrowing. Available properties are down almost 40 percent since it peaked in 2009. Aspen sales (by unit) are as high as they’ve been since early 2007. Sales (by dollar amount) are second highest of the past seven years. Only 2011 was better.
- The average value of all Aspen building permits rose 37 percent this year over last ($90.3M to $124.2M), according to a recent story in the Aspen Daily News.
- Aspen is cheap? Well, no, but with Aspen core condominiums going for $2,000-$2,500 per square foot (or even less in some cases), it might be a bargain, comparatively. Similar condominiums in NYC can fetch $6K or more.
- Commercial property is on the rise for the first time since the recession. The recent expansions at Aspen Valley Hospital and the Aspen Club & Spa, and the opening of the new downtown Aspen Art Museum highlight a list of commercial projects that are ushering in a new era of Aspen real estate.
- Housing collections are up 96% from 2013 and RETT – the Aspen Housing Real Estate Transfer Tax – is up a whopping 296% from last year, according to The Aspen Times.
- In the past year, a few condo owners have exercised their Right of First Refusal (ROFR or RFR) to assume a purchase contract matching the same dates, terms and price. Right of first refusal is a contractual right that gives its holder the option to enter a transaction with the owner, according to specified terms, before the owner is entitled to enter into that transaction with a third party. This is not good for the buyer, signaling that it may be becoming a “seller’s market” very soon.
- The state economy continues to grow faster than the national economy, and the state’s GDP (gross domestic product) was the nation’s 6th highest in 2013.
Frias Properties is Aspen’s largest rental and property management company, and also offers a full spectrum of real estate services. Frias is Aspen’s only “one-stop-shop” for buying and renting. Clients of Frias have viewed and purchased investment property, then kept Frias on for all their property management needs. Having everything under one roof makes it all easy!
Principal owners Chuck Frias and Tim Clark are always interested in speaking with potential buyers, or property owners who need assistance in any fashion. With more than 40 years of expertise in Aspen, the Frias company motto rings true: “Experience Matters. Yours and Ours.”