I just returned from a meeting of the Rocky Mountain Commercial Brokers in Breckenridge. Our group of 13 Partners meets four times each year at different locations within the Colorado mountain areas to discuss real estate issues, share Best Practices, tour real estate projects, meet with state and local government officials, banking and other commercial real estate consultants and real estate service providers. At each meeting we discuss the real estate metrics from each of our areas, looking at sales and unit volume as well as property product mix, near term and long term trends, what special marketing strategies are being employed as well as a the impact existing and pending government regulations are having on commercial real estate markets. We also look closely at the
Fall in the Town of Breckenridge, Summit County, Colorado
residential real estate components within each geographic location as those elements tend to drive the commercial markets.
Having lived in Summit County I have continued to be interested in their market trends and this meeting provided fresh insights into the changing economies of mountain resort areas. Each area has its unique selling proposition and each market has a slightly different angle on the target markets they have chosen to serve. The Summit County market is closely connected to the economies of the Denver Front Range Area as it is a “drive-to” destination. Generally, the Summit County economy tracks about one year behind the Denver Front Range economy. Things are going along quite well at present as the Front Range economies are growing out of the recession, with improving employment figures, strong new home construction starts and a healthy level of existing home sales, all translating to improving residential real estate values. Increasing consumer confidence from these factors helps drive sales of condos, timeshares and second homes in Summit County.
Sales tax revenues reported for July were ahead of the prior year by over 27%; new building permits in Summit County were up 20% year to date as compared to 2012. The average price per square foot for single family homes in Summit County in 2013 was $263, with an average selling price of $764,262. (I will compare these figures to the Pagosa Springs Area in Part Two of this Series.) Other measurements confirmed the area is on the upswing with new hotel, timeshare and commercial projects coming through the planning process, including a Whole Foods Store. Further help will likely come from the expansion of the Breckenridge Ski Area which received approval for the Peak 6 Expansion which will add 20% more ski terrain to the area. All the above factors are positive influences for the Summit County economy. They are not without their share of challenges. The I-70 Mountain Corridor, Eisenhower Twin Tunnel Project will provide some relief to the terrible traffic congestion leaving Sunday afternoons during ski season. They are also trying to deal with a Pine Beetle Infestation that has killed 154,000 acres of their trees, struggling to find appropriate funding mechanisms to continue to support Summit Stage, their free bus service, as well as protecting their water resources from the far reaching needs of the Front Range.
More Insights and Comparisons to come in Part Two
