Breckenridge Colorado is a premier ski and summer destination resort community located in Summit County, about a 1.5 hour drive west of Denver, and the Breckenridge real estate market is feeling the effects of the Great Recession.
Breckenridge homes, condos and land have all seen an increase in the available inventory and a reduction in the number of sales when compared to the market highs during the 2005-2007 time frame. This has lead to a reduction in sale prices for all three property types.
Breckenridge land sales have been especially hard hit. In 2006 there were 260 vacant lots sold in Breckenridge. In 2009 there were only 40. And about half-way through 2010, it would appear that this year is going to be about the same as last.
The decline in land values that have resulted from the reduction in the number of transaction has been dramatic. The following are just a few examples of Breckenridge Colorado land sales during the past year showing the magnitude of the losses that vacant lot Sellers are experiencing:
1. LOT 146 HIGHLANDS AT BRECKECKENRIDGE (835 GOLD RUN ROAD) : The Seller had paid $550,000 for this land on 05/31/07 and sold it for $403,000 on 08/14/09.
2. LOT 200 HIGHLANDS AT BRECKENRIDGE (834 PRESTON WAY) : The previous owner of this land had paid $427,500 for it on 07/24/07. Now the bank has it under Contract after having listed it for a price of $297,900.
3. LOT 109 HIGHLANDS AT BRECKENRIDGE (517 HAMILTON COURT) : The previous owner of this vacant lot bought it for $435,000 on 10/01/07. Now the bank has it listed for $265,500.
The above are just a few examples. There are many more like these in Breckenridge and all throughout Summit County Colorado. And land value loss paints only part of the picture when it comes to the Breckenridge Colorado land market. Another important aspect of this market is the relation of available land inventory to the number of vacant lot transactions taking place.
As of this writing, there are 283 vacant lots for sale in Breckenridge Colorado. This is more than has ever sold in a single year and is about 6.5 times more than has sold in the previous 12 months. This concept can be further broken down by price range:
Between $250K and $400K, there are currently 51 active vacant lot listings with 8 closings in this price range during the previous 12 months. This equates to about a 6.5 year available inventory.
Below $250K there are currently 111 active vacant lot listings with 21 sales in this price range during the previous 12 months. This equates to about a 5.25 year available inventory.
Above $400K there are currently 124 active vacant lot listings with 15 sales in this price range during the previous 12 months. This equates to about a 8.25 year available inventory.
By comparison, there is about a 2 year inventory of single family homes for sale in Breckenridge and about a 2.25 year inventory of multi-family properties (i.e. condos, townhomes, duplexes, etc.).
Of course all of this is bad news for those who have Breckenridge real estate for sale. But it could be great news for those looking to buy Breckenridge real estate, especially when it comes to those interested in purchasing vacant land.