From the Summit Daily News, May 28, 2006.
Washington, D.C. -- Are you under the impression that only ski towns and resort valleys have second-home owners? Think again.
The National Association of Realtors reports that vacation properties account for 12 percent of all homes sold last year, and 28 percent of homes were bought for investment purposes.
Typical vacation buyers last year were 52 years old, earned $82,000, and purchased a property that was a median of 197 miles from their primary residence. This profile differed from that of investment homebuyers in just one key respect: investment homes were likely to be close to the original home.
USA Today explains this rally in vacation and investment homes began in 1997, when Congress changed the tax code, allowing most homeowners to duck capital gains when selling their homes. The exemption is $500,000 for married couples, $250,000 for singles, if it was their primary residence for two of the previous five years.
Before, the only way to avoid the tax was to use the gained equity to buy another one of equal or greater value. But now, they can downsize and use the money instead to buy a second home.
Something else is going on. Many baby boomers are entering their peak earning years. The most active buyers of vacation and investment homes are people in their 50's. Currently there are 36 million people in that age bracket. However, with 45 million people in their 40's, the market is expected to remain strong for a long time.
Yet, David Lereah, chief economist for the NAR, believes the vacation- and investment-home buying binge will drop to 30 percent or less of all home sales as compared with the current 40 percent. He cites interest rates, higher lending standards and slower price appreciation.
Susan Gunnin, author of this blog, believes there is still plenty of time to reap the rewards of this phenomenon. In ski resorts such as Breckenridge, Colorado, second homes don't necessarily have to be differentiated from investment homes. In most cases, with prices appreciating and the possibility of short-term rentals, a second-home can be a good investment so the owner can have the best of both worlds.
For more information, see Susan's web site or email her.
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Monday, May 29, 2006
A second-home economy
The deep and lasting effects of vacation homes on resort-town finances
An article in the Summit Daily News on May 28, 2006 by Alex Miller discusses the impact of resort-town second-home ownership.
Second-home owners are a huge driving force behind economies of ski resorts and the geographic regions where they're found. Their influence can be seen in local balance sheets. Second-home owners pay property taxes, but don't have kids in schools. They can't vote, but often wish they could. They're anywhere from well-off to fabuously wealthy, and the homes they buy range from humble condos to 15,000 square foot mansions.
According to the Northwest Colorado Council of Governments - a multi-government research and advocacy group - second homes account for 34 percent of all outside dollars coming into the ski areas' local coffers. By comparison, winter visitors account for 28 percent of those outside dollars.
The surge in second-home ownership is directly attributable to the baby boomers reaching their 50's and 60's. And the buying activity has fueled record-breaking real estate sales along the way.
As the social and economic impact of second-home owners have grown over the years, different resort communities have wrestled with the pros and cons of their presence. Perhaps more than anything, the elevation of real estate prices has caused towns to create affordable housing for locals, or at least talk a lot about it.
On the other hand, there's no doubt that second-homes and their owners create jobs. Businesses which cater to the care of these homes and their owners sprout up almost like weeds. Second-home owners expect to pay others to do everything from shovel snow to pull weeds. But the demand for services creates the need for places for the suppliers of services to live, and roads for them to travel on. For example, it is expected that Eagle County will have to import some 30,000 workers daily by 2025. Where to put these workers is the number one concern for governments.
If you want to participate in the real estate boom created by second-home ownership, contact Susan Gunnin by email, or check out her web site.
An article in the Summit Daily News on May 28, 2006 by Alex Miller discusses the impact of resort-town second-home ownership.
Second-home owners are a huge driving force behind economies of ski resorts and the geographic regions where they're found. Their influence can be seen in local balance sheets. Second-home owners pay property taxes, but don't have kids in schools. They can't vote, but often wish they could. They're anywhere from well-off to fabuously wealthy, and the homes they buy range from humble condos to 15,000 square foot mansions.
According to the Northwest Colorado Council of Governments - a multi-government research and advocacy group - second homes account for 34 percent of all outside dollars coming into the ski areas' local coffers. By comparison, winter visitors account for 28 percent of those outside dollars.
The surge in second-home ownership is directly attributable to the baby boomers reaching their 50's and 60's. And the buying activity has fueled record-breaking real estate sales along the way.
As the social and economic impact of second-home owners have grown over the years, different resort communities have wrestled with the pros and cons of their presence. Perhaps more than anything, the elevation of real estate prices has caused towns to create affordable housing for locals, or at least talk a lot about it.
On the other hand, there's no doubt that second-homes and their owners create jobs. Businesses which cater to the care of these homes and their owners sprout up almost like weeds. Second-home owners expect to pay others to do everything from shovel snow to pull weeds. But the demand for services creates the need for places for the suppliers of services to live, and roads for them to travel on. For example, it is expected that Eagle County will have to import some 30,000 workers daily by 2025. Where to put these workers is the number one concern for governments.
If you want to participate in the real estate boom created by second-home ownership, contact Susan Gunnin by email, or check out her web site.
Thursday, May 25, 2006
Statewide ski numbers up from last season
Industry growth being spurred by the popularity of skiing and snowboarding with younger crowd.
The Denver Post reports that the number of skiers and snowboarders in the United States reached a record 58.8 million last season, up 3.3 percent from a year ago, according to preliminary data from the National Ski Areas Association.
Industry growth is being spurred by the popularity of sking and snowboarding with a younger crowd and equipment improvements that allow aging baby boomers to stay on the snow longer. "It's a multigenerational phenomenon", NSAA president Michael Berry said, "Baby boomers, their children and their grandchildren are all out there skiing. The resorts have become multigenerational gathering places".
The six-state Rocky Mountain Region, which includes Colorado, saw a 5.8 percent gain in skier-visits, or some 1.1 million people more than the prior year. The state's 25 ski resorts may top 12 million skiers for the first time.
Says Susan Gunnin, author of this blog and realtor with the Breckenridge RE/MAX office "This comes as no real surprise after the near record snowfall we've had this year. And real estate values are reflective of the trend. Values have been increasing along with the age of the very baby boomers who are fueling the real estate market."
For more information, check out her web site, or email her.
The Denver Post reports that the number of skiers and snowboarders in the United States reached a record 58.8 million last season, up 3.3 percent from a year ago, according to preliminary data from the National Ski Areas Association.
Industry growth is being spurred by the popularity of sking and snowboarding with a younger crowd and equipment improvements that allow aging baby boomers to stay on the snow longer. "It's a multigenerational phenomenon", NSAA president Michael Berry said, "Baby boomers, their children and their grandchildren are all out there skiing. The resorts have become multigenerational gathering places".
The six-state Rocky Mountain Region, which includes Colorado, saw a 5.8 percent gain in skier-visits, or some 1.1 million people more than the prior year. The state's 25 ski resorts may top 12 million skiers for the first time.
Says Susan Gunnin, author of this blog and realtor with the Breckenridge RE/MAX office "This comes as no real surprise after the near record snowfall we've had this year. And real estate values are reflective of the trend. Values have been increasing along with the age of the very baby boomers who are fueling the real estate market."
For more information, check out her web site, or email her.
Tuesday, May 23, 2006
Boundary adjustment a win-win situation
In the May 22, 2006, issue of the Summit Daily News, reporter Bob Berwin quotes Breckenridge Nordic Center owner, Gene Dayton, as saying "We're looking for the best possible combination of alpine and Nordic skiing" (referring to the Breckenrige Ski Area's planned expansion on to Peak 6. Dayton goes on "We have an opportunity that very few resorts have, for families to share the day" referring to families that include both downhill and crosscountry skiers.
As Dayton envisions it, the new configuration of terrain and trails would enable those family members to meet at a shared lodge on the mountain, where crosscountry and downhill trails intersect.
He said that when Breckenridge Ski Area executives asked for the acreage, he had no reason to turn them down, given that the terrain in question doesn't have an crosscountry trials on it. The new lift-served terrain wouldn't come any closer than about 500 feet to one of the Nordic trails called Siberia Loop. The boundary adjustment is in the best interest of both user groups, Dayton said.
Under the deal with the resort, Nordic center ticket holders would be able to ride the new gondola at no charge. Additionally, Nordic skiers would get one free ride on the Independence Super Chair carrying them to the top of a new nordic-downhill trail. Closer marketing ties and cross-promotion are also in the works.
For additional information, see Susan Gunnin's web site or send her an email.
As Dayton envisions it, the new configuration of terrain and trails would enable those family members to meet at a shared lodge on the mountain, where crosscountry and downhill trails intersect.
He said that when Breckenridge Ski Area executives asked for the acreage, he had no reason to turn them down, given that the terrain in question doesn't have an crosscountry trials on it. The new lift-served terrain wouldn't come any closer than about 500 feet to one of the Nordic trails called Siberia Loop. The boundary adjustment is in the best interest of both user groups, Dayton said.
Under the deal with the resort, Nordic center ticket holders would be able to ride the new gondola at no charge. Additionally, Nordic skiers would get one free ride on the Independence Super Chair carrying them to the top of a new nordic-downhill trail. Closer marketing ties and cross-promotion are also in the works.
For additional information, see Susan Gunnin's web site or send her an email.
Stage set for sking at Peak 6
On Tuesday, May 23, 2006, Bob Berwin of the Summit Daily News reported that the Breckenridge Ski Area was in discussions with the Breckenridge Nordic Center about expanding the ski area boundary for development of lift-served sking on to Peak 6.
Ordinarily, such an expansion requires Environmental and Forest Service concurrence, dialogue and public input. Apparently these approval processes aren't required when the expansion is an agreement between adjacent permit holders.
Rick Sramek, vice president of mountain operations for Breckenridge Ski Resort confirmed that the ski area wants to work on some master planning this summer, calling Peak 6 the "final piece" of the resort. Breckenridge skiing currently involves peaks 7, 8, 9 and 10 of the Ten Mile Range. Sramek did add that the public will have a chance to review and comment on the preliminary plans.
In early April, Dillon District Ranger Rick Newton carved between 200 and 300 acres out of the Nordic Center and added it to Breckenridge Ski Area's permitted terrain. The agreement between the two adjacent permit holders enabled the Forest District to make the move without requiring public review or comment as is ordinarily the case when expansion is desired. The terrain is better suited for alpine skiing than nordic because it is steeper terrain. Any specific proposal for lifts to the expanded terrain would require site-specific analysis.
Some criticism of the plan has been voiced, and more can be expected from the EPA, the Forest Service, and ski industry watchdog group Colorado Wild, because changing from nordic to alpine requires that lifts and ski trails have wide, clearcut trails. Breckenridge-based wilderness activist, Currie Craven also questioned the plan. "How [can it be known] that the development is non-significant before hearing from wild life agencies?" The area in question includes elk habitat and some of the most intact stands of old-growth spruce and fir anywhere in the Ten Mile Range.
For more information about the Breckenridge Ski Area, and Breckenridge real estate, see Susan Gunnin's web site or send her an email.
Ordinarily, such an expansion requires Environmental and Forest Service concurrence, dialogue and public input. Apparently these approval processes aren't required when the expansion is an agreement between adjacent permit holders.
Rick Sramek, vice president of mountain operations for Breckenridge Ski Resort confirmed that the ski area wants to work on some master planning this summer, calling Peak 6 the "final piece" of the resort. Breckenridge skiing currently involves peaks 7, 8, 9 and 10 of the Ten Mile Range. Sramek did add that the public will have a chance to review and comment on the preliminary plans.
In early April, Dillon District Ranger Rick Newton carved between 200 and 300 acres out of the Nordic Center and added it to Breckenridge Ski Area's permitted terrain. The agreement between the two adjacent permit holders enabled the Forest District to make the move without requiring public review or comment as is ordinarily the case when expansion is desired. The terrain is better suited for alpine skiing than nordic because it is steeper terrain. Any specific proposal for lifts to the expanded terrain would require site-specific analysis.
Some criticism of the plan has been voiced, and more can be expected from the EPA, the Forest Service, and ski industry watchdog group Colorado Wild, because changing from nordic to alpine requires that lifts and ski trails have wide, clearcut trails. Breckenridge-based wilderness activist, Currie Craven also questioned the plan. "How [can it be known] that the development is non-significant before hearing from wild life agencies?" The area in question includes elk habitat and some of the most intact stands of old-growth spruce and fir anywhere in the Ten Mile Range.
For more information about the Breckenridge Ski Area, and Breckenridge real estate, see Susan Gunnin's web site or send her an email.
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