Appraisals continue to be the knothole in a lot of real estate transactions. If you’ve ever had one come in low, then you know how frustrating it can be to look at the comparable sales and try to make sense of how the appraiser came up with that value. Underwriters and Investors struggle to make sense of the hodge podge of commentary and adjustments on appraisals as well.

In an attempt to provide consistency and accuracy to the appraisal process, Fanniemae and Freddiemac have implemented UMDP(Uniform Mortgage Data Program) and ready or not, it rolls out on all appraisals completed  on or after September 1. FHA has issued guidance that they will follow suit shortly thereafter.

So what does this mean to the rest of us?

The MLS is the most common source appraisers use for their information gathering on comparable sales and currently, it MAY OR MAY NOT provide all of the data they will be required to report. Therefore, they will have to call you to get it if you’re the listing agent. This will slow things down a bit and your timely response, if you’re the listing agent, will be very important to getting appraisals completed on a timely basis.

Here are some of the significant data changes:

Days On the Market: Days on market (DOM) is now defined as the total number of continuous days. DOM is required for the subject and the comparables.  So, even if it is taken off the market for a short while and then relisted, the appraiser will have to count all of the days it has been listed.

Offering Price : The original offering price and history of all price changes must be reported.

Sale Type : Sale type must now be reported and the allowable choices are:

1. REO sale

2. Short sale

3. Court ordered sale

4. Estate sale

5. Relocation sale

6. Non-arms length sale

7. Arms length sale

The appraiser will have to start at 1 and choose the most applicable choice in
order from 1-7.

Financial Assistance: All financial assistance must be reported. Financial assistance is now defined as: “Financial assistance or concessions paid by any party on behalf of the borrower include both monetary and non-monetary items, including below-market-rate mortgage financing, gifts of personal property, payment of property taxes and/or HOA dues for a period of time, etc.”

Site Area : Sites and parcels with less than one acre must be reported in square footage. Sites over 1 acre are reported in acres.

Property View : A view rating and view factor must be assigned to all sites. The allowed rating choices are: Neutral, Beneficial or Adverse. There are 12 established view factors which include water view, golf course view, industrial view, power lines, etc.

Property Style : Appraisers must use appropriate architectural design type indicators such as “Ranch”, “Colonial”, “Rambler”, “Farmhouse”, etc. Descriptions such as 1 story, 1 1/2 story and 2 stories are no longer acceptable.

Condition of the subject property : An overall condition rating must be assigned from the predefined condition categories provided.  The appraiser must also report any “material work” done to the kitchen and bathrooms in the last 15 years. The work must be categorized as “not updated”, “updated” or “renovated”. Specific definitions are provided for each of these terms. The time frames of all “material work” done must be provided in the following intervals: less than one year, one to five years, six to ten years, eleven to fifteen years, or timeframe unknown.

The standardized “Not Updated”, “Updated” and “Remodeled” definitions as well as the condition ratings will be used to describe the condition of the property.

Page 2 of the appraisal:   

Sale Date of Comps : The appraiser must now report the contract date as well as the closing date of all comps.

Quality of Construction : This is one of the most significant changes being made!  The appraiser must report a quality of construction rating of the subject and all comps from a list of 6 predefined quality levels. See my website for a copy of the exhibit which explains these in great detail.

Basement and Finished Rooms Below Grade : The total square footage of below grade improvements (unfinished basement) must be reported. The finished square footage below grade must be reported. Percentages are not acceptable. The access to the basement must be reported as either “Walk out”, “Walk up” or “Interior only”. The number and type of finished basement rooms must be reported. The allowable room types are “Recreation Room”, “Bedroom”, “Bathroom”, or “Other”.

AMC Reporting : The appraiser is now required to report the name of the Appraisal

Management Company involved in the assignment.

On a final note:    Despite all of these changes, nothing takes the place of the Underwriter’s review in the process. It is ultimately the underwriter who is held responsible for insuring that the appraisal is acceptable and supports the value. There is a process that takes place once the appraisal is in that tests the appraiser’s result against an automated valuation model for QC purposes. If this process, in our operation called Fraudguard, detects that there are other, potentially closer or more recent comps, it will red flag the appraisal data and the underwriter may have to further investigate value through the use of a review appraisal or by getting additional information from the current appraiser. So, it’s never over these days until we have a firm commitment from the Underwriter.      –Jim Ramsey

The market has a long way to go to get to reach equilibrium. This continues to be a strong buyers market, and sellers should expect aggressive offers. This just reinforces how critical pricing is if you wish to sell in this market.  Our market tends to move slowly in the winter and picks up momentum as we hit summer and fall. Let’s hope that this holds true.

Notable Sales in May 2011:

The highest priced sale in May was a commercial property:

5/10/2011 $2,430,000 Ten Mile Subd Lot A with Easement & ROW – 0865 North Summit Boulevard, Frisco aka Taco Bell.  This commercial building is 2,661 SF in Size, and has .63 AC Land. It was built in 2003.  PPSF is $913.19

The highest priced non-commercial sale in May:

5/23/2011 $2,250,000 Lewis Ranch at Copper Mountain Subd Lot 1 – 0988 Beeler Place – 3 Bedroom 5 Bath YOC 2006 with 4,742 SF Living Area on .18 AC Land. PPSF is $474.48.  This is a new Construction Sale.

The highest PPSF in May:

5/17/2011 $2,025,000 One Ski Hill Place Condo Unit 8410 – 1521 Ski Hill Road, Breckenridge – 3 Bedroom 3 Bath YOC 2008 with 1,593 SF Living Area.  PPSF is $1,271.19.

May 2011 Notes:

• Summit County Gross Real Estate Volume Graph: May was a decent month, topping the number of transactions over May 2010, with slightly less gross monetary volume due to the lower prices in Summit County.

• Market Analysis by Area for May:  There were 107 transactions in May with $56,177,600 in monetary volume. Breckenridge normally tends to have the majority of transactions each month with 26 and $17,988,800 monetary volume in May. The Median Residential Price for all 19 areas combined is lower this month at $400,000.

Market Analysis by Area YTD: As of this May YTD, there have been 491 transactions with $249,258,800 monetary volume, the median residential price is $408,750 for all 19 areas with and average residential PPSF is $321 for all 19 areas.

• Market Snapshot: The Median Price for Single Family from 2010 to YTD 2011 once again shows an increase of 1%.  The Median Price for Multi-Family from 2010 to YTD 2011 is flat at 0% and the Median Residential Land price is continues to fall with a 44% decrease 2010 to YTD 2011. The Breckenridge Golf Course saw a big spike from YTD 2011 from full year 2010 at 15% increase Median Single Family and Keystone also saw a spike at 86%! Frisco saw a spike in Median Multi- Family with a 15% increase.

• Market Analysis % Change: YTD 2011 Monetary Volume for transactions recorded is up 20% compared to YTD 2010.   YTD 2011 transaction volume for all transactions recorded is up 26% compared to YTD 2010.  Monetary Volume for May 2011 is down 11% compared to May 2010 and transactions for May 2011 are up 14% compared to May 2010.

• Residential Market Sales by Price Point: There were 84 Residential Improved Units sold in May with $48,737,100 gross volume. 35% of the residential sales are $500K and under. There were 14 Residential sales over $1M ( same as April). There were 34 Single Family transactions totaling $28,372,600 and 50 Multi-Family transactions totaling $20,364,500 in May.

• Average Price History: YTD Single Family Residential Average Price paces at an increase this month YTD at $780,637, Multi-Family Residential is flat to last month’s chart at $409,389 and Vacant Land Residential continues to drop at $261,997.

• Historical Cost Breakdown: In YTD 2011- there were 384 Residential Improved Unit Transactions  (Gross- $212,892,600) vs. 2010 YTD- 299 transactions (Gross- $171,410,500)  and YTD 2009-263 transactions (Gross -$171,512,200). YTD 2011 is showing steady signs of improvement with more transactions and higher gross volume over the past years this same time.

• Cash sales were 53% in May. There were a total of 444 loans in May. 50 loans were related to sales, there were 168 REFI’s and 226 Deed of Trust were recorded for timeshare sales. Cash transactions are about half of the number of sales transactions in May.

• Bank Sales:   There were 14 Bank Sales in May, totaling $7,368,400 in Gross Volume or $526,314 per unit. ( a little higher than April) This accounts for 13% of the overall gross volume in sales. YTD, there have been 58 Bank Sales totaling $26,520,500 in Gross Volume or $457,250 per unit, this accounts for 11% of the gross volume sales.

• Foreclosure Info: May- There were 14 Fee Simple properties that made it to the PTD process. YTD: 136 FEE SIMPLE properties are in the Foreclosure PROCESS. Blue River, Silverthorne and  Breckenridge show the highest numbers of Fee Simple properties enduring the Foreclosure process.

The highest priced sales are the assemblage purchase for Lowes in Silverthorne:

4/27/2011 $3,963,000 Bass Auto Park Subd Lot 1 & Sec 12-5-78 Arctic Placer MS #12964 aka 0201 Buffalo Mountain Drive – Two Commercial Properties with a total of 22,986 SF Building Area and 3.8 AC Land Area.  YOC 1986.  PPSF is $172.44.  Purchaser is:  Lowes HIW, Inc.

4/27/2011 $2,750,000 Bass Auto Park Subd Lot A aka Buffalo Mountain Drive (N/A Street Address)  Vacant Commercial Site of 7.4 AC Land Area.  PPAC is $371,622.  Purchaser is: Lowes HIW, Inc.

Highest Priced Residential Sale:

4/29/2011 $2,235,000 Swan River Valley PUD Lot 1, Parcel C aka 2045 Tiger Road – 5 Bedroom 5 Bath YOC 2007 with 4,775 SF Living Area on 3.76 AC.  PPSF is $468.06.  This is a New Construction Sale.

Highest PPSF April 2011:

4/1/2011 $805,000 One Ski Hill Place Condo Unit 8216 aka 1521 Ski Hill Road – 1 Bedroom 2 Bath YOC 2008 with 691 SF Living Area.  PPSF is $1,164.98.  This is a New Construction Sale.

April 2011 Notes:

• Summit County Gross Real Estate Volume Graph: April was actually a great month in Summit County, with $66M Gross Volume, the best so far in 2011.

• Market Analysis by Area for April:  There were 106 transactions in April with $66,323,300 in monetary volume. Breckenridge had 39 transactions, Keystone 13 transactions and The Breckenridge Golf Course area had 10 transactions in April. The Median Residential Price for all 19 areas combined is at $500,000.

Market Analysis by Area YTD: As of this April YTD, Breckenridge has had 126 transactions, Median Residential Price =$551,000, Breckenridge Golf Course area has had 32 transactions with Median Residential Price=$957,000, Wildernest has had 29 transactions with Median Residential Price = $275,000, Frisco has had 28 transactions with Median Residential Price=$400,000, Silverthorne has had 26 transactions with Median Residential Price = $375,000 and Blue River has had 26 transactions with the Median Residential Price=$502,500.

• Market Snapshot: The Median Price for Single Family from 2010 to YTD 2011 once again shows an increase of 8%.  The Median Price for Multi-Family from 2010 to YTD 2011 increased to 2%.  The Median Residential Land price is continues to fall with a 44% decrease 2010 to YTD 2011.

• Market Analysis % Change: YTD 2011 Monetary Volume for transactions recorded is up 34% compared to YTD 2010.   YTD 2011 transaction volume for all transactions recorded is up 29% compared to YTD 2010.  Monetary Volume for April 2011 is up 63% compared to April 2010 and transactions for April 2011 are up 16% compared to April 2010.

• Residential Market Sales by Price Point: There were 87 Residential Improved Units sold in April. There were 14 Residential sales over $1M!. The most active price point went up a little bit at $300K to $400K.  YTD there have been 116 Single Family sales totaling $88,722,900, 184 Multi-Family totaling $75,432,600 and Vacant Land at 30 transactions totaling $8,566,900.

• Average Price History: YTD Single Family Residential Average Price this month at $764,853, Multi-Family Residential is at $409,960 and Vacant Land Residential continues to drop at $285,563. All three of these categories are up slightly from March 2011.

• Historical Cost Breakdown: In YTD 2011- there were 300 Residential Improved Unit Transactions  (Gross- $164,155,500) vs. 2010 YTD- 213 transactions (Gross- $109,612,500)  and YTD 2009-194 transactions (Gross -$117,609,100). YTD 2011 is showing steady signs of improvement with more transactions and higher gross volume over the past years this same time.

• Top Lender Graph: Cash sales decreased to 59% in April. There were a total of 407 loans in April. 43 loans were related to sales, there were 137 REFI’s and 227 Deed of Trust were recorded for timeshare sales.

• Bank Sales:   There were 10 Bank Sales in April, totaling $5,130,000 in Gross Volume or $513,000 per unit. This accounts for 7.73% of the overall gross volume in sales. YTD, there have been 44 Bank Sales totaling $19,152,100 in Gross Volume or $435,275 per unit, this accounts for 9.92% of the gross volume sales. This month’s Banks Sales are about the same as last year.

• Foreclosure Info: April- There were 16 Fee Simple properties that made it to the PTD process. YTD: 109 FEE SIMPLE properties are in the Foreclosure PROCESS. Blue River, Silverthorne and  Breckenridge show the highest numbers of Fee Simple properties enduring the Foreclosure process.

The Highest Price for March 2011 is a commercial property:

3/31/2011 $1,850,000 Frisco Station Commercial Condo Units: 5 through 10 Inclusive aka 0842 North Summit Boulevard.  The Total Commercial Improved space is:  8,393 SF, built in 1988.  PPSF is $220.42  Retail Commercial Use.

The Highest PPSF for March 2011:

3/24/2011 $930,000 Water House on Main Street Condo Unit 5109 aka 0600 South Main Street – 3 Brm 3 Bath YOC 2008 with 1,405 SF Living Area.  This is a New Construction Sale.  PPSF is $661.92

March 2011 Notes:

• Summit County Gross Real Estate Volume Graph: March was a positive month, over last year in both gross monetary volume and number of transactions. The first 3 months of 2011 are above last years first quarter.

• Market Analysis by Area for March:  There were 102 transactions in March with $44,858,700 in monetary volume. The Copper area is showing some more activity. The most transactions continue to be in Breckenridge.

• Market Analysis by Area YTD: As of this quarter- Breckenridge has had $45,546,400 monetary volume, with 87 transactions, Median Residential Price at $454,750 and average PPSF is $425. Copper shows $4,786,500 with 12 transactions,  Median Residential Price $362,500 and average PPSF is $366, Frisco has had $10,330,000 with 22 transactions, Median Residential Price at $400,000 and average PPSF is $241. Keystone has had $11,727,700 with 28 transactions, Median Residential Price $353,100 and average PPSF is $316. Silverthorne has had $7,851,800 with 18 transactions and the Median Residential Price is $338,000 with the average PPSF is $221.

• Market Snapshot: The Median Price for Single Family from 2010 to YTD 2011 once again shows an increase of 2%.  The Median Price for Multi-Family from 2010 to YTD 2011 decreased by 1%.  The Median Residential Land price is continues to fall with the 41% decrease 2010 to YTD 2011.

• Market Analysis % Change: YTD 2011 Monetary Volume for transactions recorded is up 92% compared to YTD 2010.   YTD 2011 transaction volume for all transactions recorded is up 132% compared to YTD 2010.  Monetary Volume for March 2011 is up 20% compared to March 2010 and transactions for March 2011 are up 19% compared to March 2010.

• Residential Market Sales by Price Point: There were 72 Residential Improved Units sold in March. There were 4 sales over $1M. The most active price point was $200K to $300K.  YTD there have been 74 Single Family sales totaling $52,556,800, 139 Mulit-Family totaling $55,845,900 and Vacant Land at 24 transactions totaling $6,062,000.

• Average Price History: YTD Single Family Residential dropped again this month at $710,227, Multi-Family Residential dropped at $401,769 and Vacant Land Residential continues to drop at $252,583.

• Historical Cost Breakdown: In YTD 2011- there were 213 Residential Improved Unit Transactions  (Gross- $108,402,700) vs. 2010 YTD- 137 transactions (Gross- $71,855,500)  and YTD 2009-148 transactions (Gross -$83,877,000). YTD 2011 is showing steady signs of improvement with more transactions and higher gross volume over the past years this same time.

• Top Lender Graph: Cash sales decreased to 43% in March There were a total of 491 loans in March. 58 loans were related to sales, there were 188 REFI’s and 245 Deed of Trust were recorded for timeshare sales.

• Bank Sales:  Bank sales are slightly down remain about the same in March. Bank owned properties continue to clear out as foreclosure action slow in March.  There were 13 Bank Sales in March, totaling $4,630,900 in Gross Volume or $356,223 per unit. This accounts for 10.32% of the over all gross volume in sales.

• Foreclosure Info: March- There were 18 Fee Simple properties that made it to the PTD process. The overall difference for March 2011 compared to March 2010 with Foreclosure actions is 53 vs 62 which is a -14.5% difference- the bank owned properties continue to clear out as foreclosure actions slowed in March.

2/16/2011 $2,685,000 One Ski Hill Place Condo Unit 8516 aka 1521 Ski Hill Road – 4 Brm 4 Bath YOC 2008 with 1,891 SF Living Area.  This is a New Construction Sale. PPSF is $1,419.88.  This is also the highest PPSF paid for February.

-Second Highest Priced sale for February 2011:

2/15/2011 $1,750,000 Bluesky Breckenridge Condo Unit 502 aka 0042 Snowflake Drive – 4 Brm 5 Bath YOC 2005 with 2,362 SF Living Area.  PPSF is $740.90.

-There are two new “affordable” unit projects that are starting to close:

Peak One Neighborhood had 3 Sales, with a gross volume of $787,100 which is $262,367 Average Price per Unit.  This project is located in Frisco.

Valley Brook Townhome had 2 Sales, with a gross volume of $432,000 which is $216,000 Average Price per Unit. This project is located in Breckenridge.

-There were also a couple more new sales in the Water House at Breckenridge:

Gross Volume: $1,155,000, Average Price:  $577,500,# Sales: 2, Average PPSF: $538.93

February 2011 Notes:

• Market Analysis by Area for February:  There were 89 transactions in February with $38,351,800 in monetary volume. Breckenridge was the most active area with Keystone coming in second.

• Market Analysis by Area YTD: There have been 176 transactions with $81,899,200 in monetary volume so far. The Median Residential Price for all 19 areas is $403,000. There have been 55 transactions in Breckenridge, 22 in Keystone, 15 in Blue River, 14 in Frisco, 14 in Silverthorne and 13 in Wildernest. The average Residential Price Per Square Foot for all 19 areas is $322.

• Market Snapshot: The Median Price for Single Family from 2010 to YTD 2011 increased by 2%.  The Median Price for Multi-Family from 2010 to YTD 2011 increased by 7%.  The Median Residential Land price is still struggling with a 41% decrease 2010 to YTD 2011.

• Market Analysis % Change: YTD 2011 Monetary Volume for transactions recorded is up 24% compared to YTD 2010.   YTD 2011 transaction volume for all transactions recorded is up 47% compared to YTD 2010.  Monetary Volume for February 2011 is up 6% compared to February 2010 and transactions for February 2011 are up 35% compared to February 2010.

• Residential Market Sales by Price Point: There were 65 Residential Improved Units sold in February. There were five other sales over $1M, two homes in the Highlands, two homes in Breckenridge, and one in Copper Mountain.

• Average Price History: Single Family Residential dropped a bit YTD at $705,177, Multi-Family Residential increased at $429,237 and Vacant Land Residential continues to drop at $185,923.

• Historical Cost Breakdown: In YTD 2011- there were 141 Residential Improved Unit Transactions  (Gross- $73,491,600) vs. 2010 YTD- 72 transactions (Gross- $38,284,300)  and YTD 2009-92 transactions (Gross -$52,456,000).

• Top Lender Graph: Cash sales are at 51% in February. There were a total of 625 loans in February. 44 loans were related to sales, there were 222 REFI’s and 359 Deed of Trust were recorded for timeshare sales.

• Bank Sales:  Bank sales are slightly down with 10 this month, totaling $4,972,900 in gross volume which accounts for 13% of overall gross volume. There have been 21 Bank Sales YTD through February 2011, totaling $9,391,200 in Gross Volume, or $447,200 per Unit .  This accounts for 11.47% of the Overall Gross Volume in Sales.

• Foreclosure Info: February- There were 11 Fee Simple properties that made it to the PTD process. Directions to view Foreclosures: Go to www.co.summit.co.us, on the left hand side, click on “Treasurer and Public Trustee”, Click on “Foreclosure Property Search”, Click on the “Foreclosure List ( PDF format)”.

-Highest Priced sale in January 2011:

1/3/2011 $3,700,000 Baldy Ridge Estates PUD Lot 7/8 aka 0070 Green Jay Lane – 6 Bedroom 7 Bath YOC 2005 with 6,978 SF Living Area on 3.527 AC Land.  PPSF: $530.24

-Highest PPSF in January 2011:

1/4/2011 $725,000 Lone Eagle above River Run Condo Unit 3003 aka 0280 Trailhead Drive – 2 Bedroom 2 Bath YOC 2000 with 1,018 SF Living Area – PPSF: $712.18

There were some notable sales at the Water House on Main Street Condo in Breckenridge project in January:

Totaling: $7,089,000 in Gross Volume, with an Average Price of $787,667 per Unit, encompassing 9 Sales at an Average Price PSF of $615.37

January 2011 Notes:

• Summit County Gross Real Estate Volume Graph: January 2011 was way up from January 2010 with monetary volume and transactions.

• Market Analysis by Area for January: There were 87 transactions in January with $43,547,400 in monetary volume. The Median Transaction price for all 19 areas reported was $400,000, with the median residential price at $409,000. Valley Brook and Peak One Neighborhood both started closings in January, also Water House in Breckenridge made a difference this month. Overall, January was a good month. The averages are showing an increase as well.

• Market Snapshot: The Median Price for Single Family from 2010 to YTD 2011 increased by 11%.  The Median Price for Multi-Family from 2010 to YTD 2011 increased by 16%.  The Median Residential Land price is still struggling with a 30% decrease 2010 to YTD 2011.

• Market Analysis % Change: 2011 Monetary Volume for  transactions recorded is up 45% compared to 2010.  2011 transaction volume for all transactions recorded is up 61% compared to 2010. Yeah!.

• Residential Market Sales by Price Point: There were 76 Residential Improved Units sold in January. Price points are all over the board with the most sales in the 200K to 400K price point.  A majority of the Valley Brook and Peak One accounted for the New Construction numbers.  The Average prices for the Residential Improved Units are very similar to 2010 with vacant land still much lower. Average Single Family: $767,461, Average Multi-Family-$426,174 and Average Vacant Land $221,950.

• Historical Cost Breakdown: In January 2011- there were 76 Residential Improved Unit Transactions  (Gross- $40,238,800) vs. 2010 January- 19 transactions (Gross- $10,755,600)  and January 2009-48 transactions (Gross -$27,580,600).

• Top Lender Graph: Cash sales continue to climb – 54% this month! There were a total of 945 loans in January. 40 loans were related to sales, there were 280 REFI’s and 625 Deed of Trust were recorded for timeshare sales.

• Bank Sales: There were 11 Bank Sales in January  totaling $4,418,300 in gross volume which accounts for 10.15% of overall gross volume.

• Foreclosure Info: January- There were 4 Fee Simple properties that made it to the PTD process. Directions to view Foreclosures: Go to www.co.summit.co.us, on the left hand side, click on “Treasurer and Public Trustee”, Click on “Foreclosure Property Search”, Click on the “Foreclosure List ( PDF format)”.

But the Census numbers fall short of county projections, which estimate a 25.8 percent increase in population — a total permanent resident base of more than 29,600 people.

While the correct, exact number is unclear, county planners say it is likely in the neighborhood of 27,000 people. The planners, who calculate county estimates based on information provided by the Colorado state demographer, said they anticipated population counts for 2010 to be a bit lower than initial estimates due to the recession, which likely pushed some residents back toward the Front Range where jobs might be more readily available.

Census data show the Summit County population has aged slightly since 2000, with a current median age of 33 — up from 30.8 10 years ago. The number of residents over the age of 65 has increased from 3.3 percent of the population to 5.3 percent.

Summit has also followed a state-wide trend toward greater diversity, though the county remains predominantly white, according to 2010 Census numbers. Permanent residents who identify as Hispanic or Latino in Summit County have increased to 13.9 percent in 2010 from 9.8 percent in 2000, while over 90 percent of the total population identifies as white.

The county also made strides toward narrowing the gender gap over the last 10 years, although men continue to outnumber women significantly, according to Census numbers. Women made up 41.8 percent of the total population in 2000, but now constitute 43 percent of the total number of permanent residents.

Summit County continues to trend ahead of the state and the nation as a whole in terms of education and income. Summit County residents boast a per-capita income of over $35,000, while the state-wide per capita income is just over $29,500. Nationally, it’s just over $27,000.

Approximately 94 percent of Summit County residents over the age of 25 have completed high school or some higher level of education, compared with just shy of 89 percent of people state-wide and 84 percent of people nationally in the same age bracket. Likewise, 48 percent of locals over 25 hold a bachelor’s degree or some higher degree while only 35.5 percent of Colorado’s population and 27.5 percent of people across the country can make the same claim.

reprinted from the Summit Daily

2010 Sales Summary

According to Land Title,  the total amount of all real estate transactions in Summit County 2010 was $689,439,815. This is a $6,430,715 or 2% increase which is great news considering the national real estate situation which is somewhat unsettled to say the least.

For 2010 there were a total of 898 residential transactions vs 825 in 2009 which is 8.9% increase. Virtually all categories, single family, condo, townhomes, and duplex all showed increases. Breckenridge showed the greatest increase of transactions with a 21% increase (includes sales at One Ski Hill Place).

Foreclosures that were filed in Summit County were up 123%. In 2009 at total of 47 properties went to sale at the courthouse. In 2010, that number increased to 105. We consider ourselves to be fortunate given the current real estate environment. We do, however, expect that number to increase, but the total numbers should still be relatively low.

Average Sales Prices 2010 vs. 2009

The average residential sale price is $770,797 vs $905,030 a -14.8% decrease. Not all areas are the same. In Breckenridge,  the average price for a single family this year was $979,510 vs.  $1,050,488 in 2009 or a -6.8% change.

For multi-family properties,  the average price county-wide was $425,080 vs $398,051 in 2009 or a +6% increase. A large part of the increase is are the sales at One Ski Hill Place. It these are factored out then condo prices show approx -10% change. Much of this can be attributed to the lending requirements of Fannie Mae regarding those properties with front desks and commercial space. Very hard to get a fixed rate loan on this type of property.

Active Listings: The active listing inventory for the Summit County residential market is 1,319. For vacant land the number is 368. For a total of 1,687. We should see an increase in the number of listings as we move more into March. This about the same total as we saw this time last year.

REO(Banked owned) – Short Sale listings: The MLS is showing only 23 properties in the county showing these designations. I would expect this number to increase slightly in the coming months.

Month of inventory: Based on the current inventory and sales of residential units (49) for the previous 30 day period shows the market has a long way to go to get to equilibrium. This is a 26 month supply is almost too ridiculous to print. This continues to be a strong buyers market and sellers should expect aggressive offers. Our market tends to move slowly in the winter and picks up momentum as we hit summer and fall.

Active Listings: The active listing inventory for the Summit County market is 2344. Of that total 1,864 are residential and 480 vacant land. I expect that as we get closer to winter the number of residential listings will decrease until March when we typically begin to see an increase.

REO(Bank owned)-Short Sale Listings: Of the active listings, there are 31 properties listed as short sales, (.01%) and 16 properties listed as REO sales, (.01%). While I expect to see this number slowly increase we are very lucky to have such a small number of distressed properties at this time.

Months of Inventory: Based on the current inventory and sales of residential for the previous 30-day period, the market has roughly 17-months of inventory available. The inventory of homes and land at today’s prices continues to favor the buyer interested in an investment property, vacation home or moving up to a larger home or better location.

Sales Summary:
Total Sales 2010 Vs 2009:

For 2010, there have been 654 residential properties sold in the market as compared to 565 for the same period in 2009 which is a 16% increase in sales. Of the properties sold, 17 have been REO’s, (.03%). In 2009 for the same period, there were 7 REO sales.

For the year, there have been 379 properties sold priced below $500,000, 218 properties sold between $500,000 and $1,000,000 and 98 properties sold over $1,000,000.

Average Sales Prices 2010 Vs 2009:
The average sale price is $661,355. For the same period in 2009, the average sales price was $728,550 which is an (9.2%) decline in price respectively year over year for the same period of time. Areas such as Breckenridge typically have a much higher average price and this year is no different with an average price of $958,984. This is an -11.7% reduction from the $1,085,504 in 2009.

Market Activity Commentary:
This continues to be a strong Buyers market and the time may be right for that investment in a vacation home or investment property.
The hottest segments of the market are residential (homes and condos) priced between $500,000 and $300,000 as roughly 175 or 20% of the sales have occurred in this segment. Interestingly, the next most active price point is $1,000,000-$1,500,000 with 41 sales for a 15% market share.