8 Compelling Reasons to Buy Now
8 Reasons To Buy a Vail Luxury Condominium RIGHT NOW!
There will never be a better time. Learn why.
1. The demand for luxury condos in Vail Village and Lionshead has decreased compared to the 2006-2008 period. This has led to a price drop from the market highs of 2007, so you can find the condo you’ve dreamed of at a significant price reduction.
2. Sales have improved from our 2009 lows. Prices are not rising again yet. From June 30, 2010 to June 30, 2011 there were a total of 105 accepted and closed contracts on Vail Village and Lionshead condominiums. This compares with only 71 condominiums closed during the prior 12 months from June 30, 2009 to June 30, 2010. Sales have been about equally divided between new and older Vail condominiums Even with this encouraging increase, there is still a 24 month supply of Vail luxury condominiums on the market based on the current average sale of about 9 condominiums per month.
3. During the aforementioned time period (June 30, 2010 to June 30, 2011) new luxury condominiums in Vail Village commanded prices from $844.00 per square foot at Manor Vail to $2,737.00 per square foot at Solaris. Lionshead condominiums have ranged from $665.00 per square foot at Montaneros to $2,164.00 per square foot at the Ritz-Carlton Residences. The price per square foot figures at the high end, which is on new construction, are a little misleading because some of these closed properties went under contract during the market peak year of 2007.
By comparison, during 2007 prices for new construction were as high as $1,750 per square foot in Lionshead at The Arrabelle and $3,000+ per square foot inVailVillageat the Chalets at the Lodge at Vail. Your potential savings if you buy now may be sizable.
4. The new condominium buildings are now complete. Some developers and their construction lenders are seriously discounting their prices to complete the condominium sales in their new buildings.
5. Some sellers are now more anxious and motivated to sell at very attractive prices than we have seen in about ten years. This will continue because of the imbalance between the 214 properties for sale and the reasonably small number of actual current buyers.
6. Mortgage interest rates are close to or below historically low levels. Many economists expect that mortgage interest rates will soon increase as a result of current and projected government spending, so now is the time to act.
7. It is likely that capital gains taxes on the sale of real estate will increase in the future. The current rate of 15% is the lowest in my lifetime. If this happens, sellers who have real appreciation, which means capital gains, above their purchase price and current basis, will realize smaller net proceeds than they would receive under the current tax laws. Alert sellers will recognize this and reduce their selling price to a number that will generate a sale and closing in 2011.
8. The construction industry is hurting because of the weak Vail/Beaver Creek real estate market. Therefore, if you are considering remodeling a property that you currently own or buying a property that needs remodeling, now is an ideal time to remodel.
If you or someone you know is seriously considering buying a Vail condominium, now is the time to obtain a reasonably priced family legacy property and/or a good investment. If you already own a Vail luxury condominium and want to trade up to something bigger and/or more desirable, you will probably save more money on the "buy" side than you will give up on the sale of your current property.
As a point of information, Vail Luxury Condominiums means all Vail condominiums and townhomes located in Vail Village and Lionshead.