Sales hold, prices don't
2009 was the year for local 'market correction' in real estate
Times Editor
Originally published 2010-01-28



Working harder to make less.

That is an economic phenomenon hitting workers in many industries, all across the country during this recession. And if you gauge it solely by the data, it appears to have rung true for Gunnison County real estate professionals in 2009.

They sold nearly as many homes as they did in 2008 (232 compared with 234), but the total dollar volume of those deals dropped 19 percent.

The reason, of course, is that prices fell significantly. The average sales price of a home in the Gunnison area dropped 26 percent in 2009 (to $236,194), according to Multiple Listing Service data compiled by Tom Courtney of RE/MAX Community Brokers in Gunnison. In the Crested Butte area, including Mt. Crested Butte and Crested Butte South, home prices plummeted 31 percent (to $541,641).

It’s a real estate correction that many saw coming in the wake of the buying frenzy of a few years ago — much of which, especially up-valley, was spurred by the sale of Crested Butte Mountain Resort.

“I think perhaps some of what we’re seeing is the result of that false economy that was created five years ago,” Courtney said.

2005 was the peak real estate year in Gunnison County, when total residential sales topped $265 million. Last year’s sales volume is barely a third of that (see inset).

“I think it’s a good correction” to the market, said longtime Gunnison broker Mindy Costanzo.

“We still have an incredibly attractive market,” she added. “If we offer properties at the right value, were going to have more sales. It’s that simple.”

In Crested Butte, residential sales activity actually grew fairly significantly. There were 130 homes sold in 2009, compared to 101 in ’08. Not all of those were willing sellers, however.

“There were quite a few ‘distressed sales,’” said Tom Filchner, the owner of Prudential Becky Hamlin Realty in Crested Butte.

Gunnison County saw a record number of foreclosure “starts” in 2009. Foreclosure is a lengthy process and many of the properties are “cured” before they ever hit the general real estate market. But Filchner, who deals primarily in the up-valley vacation home market, said he did see some foreclosure sales.

“And it doesn’t take too many of them to affect the market,” he added.

The median price of Crested Butte area homes dropped even further than the average — all the way to $352,500, a 39 percent dip.

The state of the real estate economy in Gunnison County in 2009 was hardly unique. Slumping sales were common across the region. Fewer homes were sold in Denver last year than at any time since 1997, according to the Denver Post. In Jackson, Wyo., the dollar volume of home sales plunged 79 percent.

The tale of the local real estate tape is definitely mixed, however.

“2009 was better for me than 2008,” said Cathie Elliott of The Clarke Agency in Gunnison, who does the bulk of her business with the local, “under $300,000” home buyer. “And I expect 2010 to be even better. Demand is up.”

Prudential Becky Hamlin Realty reported that the “fine and luxury home” market isn’t totally off, either. There were seven homes selling for $2 million or more.

“There was so much fear and apprehension in the market in 2009,” Filchner opined. “I think that’s starting to dissolve.

“One thing that hasn’t changed is that people still want to have a second home in Crested Butte.”

 

(Chris Dickey can be contacted at 970.641.1414 or editor@gunnisontimes.com)