As the global ski business begins, Knight Frank is reporting that the American ski location of Aspen in Colorado has seen housing sales remain steady over the past 12 months. With 6,000 properties in the area, sales activity for 2017 had 257 property transactions compared to 170 in 2016.
The area referred to as the Central Core or downtown market is responsible for 48% of all local sales with the highest values for homes being at Red Mountain.
Buyers for Aspen prime residential properties are typically from the U.S., particularly from New York, Houston, Dallas, Salt Lake City, Los Ángeles and San Francisco. However, there is a buyer demand from outside the U.S. despite the strength of the dollar which some buyers are saying is a motivation for their purchase. International buyers represent about 20% of the purchases, with Australian, German and UK buyers accounting for more than 50% of overseas luxury home buyers.
The current demand for homes in the value range of US$3m and US$5m has had the highest rate of demand. Homes in other price values continue to see higher levels of available properties which have made owners carefully consider their asking prices.
Krista Klees, founding principal at Palladium Properties in the Robb Report said:
“Downtown and the centre have more ‘lock and leave’ options with less annual expenses. These are homes people are spending less than 30 days a year in”.
Knight Frank also reports:
“Aspen’s West End is facing strong demand as many buyers recognise its value compared with Downtown Aspen.”
“The West End is located within a mile and a half of the city centre, which offers a plethora of activities, cultural events and social venues on their doorstep.”
“Red Mountain is still the cornerstone of the Aspen property market with its median value currently at around US$12.1 million.”
But land in the exclusive areas is limited with older model homes becoming popular for cost and remodelling for state-of-the-art living.
Future plans for Aspen include a new $56 million W Hotel to be available by spring 2019 with 11 branded Sky Residences. Another development is the Gorsuch Haus with new ski lifts and a new Lift One Lodge with 22 new residences and amenities.
The Robb Report ranks Aspen at number seven among its 10 Priciest Neighbourhoods in America.
Michelle Sullivan, broker associate at Christie’s International Real Estate Aspen commented:
“Aspen is really a ski resort last and a lifestyle first.”
The lifestyle of Aspen with its arts, culture, dining, luxury and outdoors has put a strain on the inventory of property available along with strict land use restrictions.
Homes in the $12 million ultra-luxury value range are sitting on the market longer as a result of limited customers for that range.”
By Kevin Murphy
