Market analysis for The Reserve at Frisco homes.
Whew, 2009 is finally over! It was not a wonderful year for real estate in Summit County Colorado, no matter which town you live in. I am going to post activity reports here for several condo complexes and subdivisions over the next few weeks, and will start with The Reserve.
Click the link The Reserve at Frisco homes 2009 to access the written report, but here is a synopsis.
Currently as of January 9, 2010, there are seven homes for sale in The Reserve. Six sold in the last twelve months, but the highest price was only $890,000. All six homes sold between July 31st and November 20th, so once they started to move, they sold well. Price per square foot ranged between $303 psf to a low of $243 psf, but the lowest price was on the largest house, which is the norm. Smaller homes usually cost more per square foot as kitchens and baths are more expensive to build. More bedrooms or larger rooms cost less per square foot.
Time on the market ranged from 36 days to 419 days. The home that sold in 36 days actually went under contract in less than a week and the price was only discounted by $1,000. There is something to be said for pricing properly in a poor market. It sells faster and for much closer to asking price than a home that is listed for more than a year with repeated price reductions. It often will end up selling for more than a comparable home in the latter situation. The one that sold for the highest discount off the list price sold at 92.6%. The median and the average of all sales were actually very close to each other, at around 96.3%. All these figures are computed using the last listed price, not the price when first put on the market.
The homes that are currently listed range in price from $719,900 to $1,399,000. Four are listed at more than $1,000,000. Based on sales for 2009, I would guess that the three lower priced homes will sell first. Our market is improving, albeit slowly, with a $1.5M home in Frisco just going under contract, and a home in Breckenridge that sold for a new record price of more than $8,000,000 recently.
But don’t get your hopes up just yet! Looking at the numbers, at the present time we have just over a year’s worth of inventory in The Reserve. However, there are a lot of people who would like to sell but are holding off until the market improves. If those homes come on the market this year, we could end up with more than a year of inventory as prices will not increase. In fact, they may continue to decrease for a while longer.
We are not done with foreclosures and short sales yet. There is one of which I am aware in The Reserve, although it is not listed for sale at this time. It is possible there will be more, and they will affect home values. It is not yet a good time to sell, but it is definitely a good time to buy. It seems that we are nearing the bottom of the market, but we won’t know we were there until prices and sales both start to increase again. Need more details? Let us know and we will be happy to get them to you.
