From the National Association of REALTORS: Vacation Home Sales On The Rise

From the National Association of REALTORS:

Vacation Home Sales Pick up Slack as Investments Wane

Vacation home purchases recovered strongly in 2013, helping to offset some of the inevitable flagging interest in investment purchases the National Association of Realtors® (NAR) said today.  NAR's 2014 Investment and Vacation Home Buyers Survey shows an increase in vacation-home sales during the year of 29.7 percent.  There were 553,000 such sales in 2012, an estimated 717,000 in 2013.

At the same time investment purchases retreated from the elevated levels of 2011 and 2012, falling 8.5 percent to 1.10 million in 2013 from 1.21 million in 2012.  There were 1.23 million such sales in 2011.  NAR's investment sales figures do not include institutional sales.  Sales of owner-occupied homes rose 13.1 percent to 3.70 million last year from 3.27 million in 2012.

NAR Chief Economist Lawrence Yun said the pullback in investment activity is understandable. "Investment buyers slowed their purchasing in 2013 because prices were rising quickly along with a declining availability of discounted foreclosures over the course of the year," he said.

"In 2011 and 2012, investment property was a no-brainer because home prices had sharply over corrected during the downturn in many areas, creating great bargains that could be quickly turned into profitable rentals. With a return to more normal market conditions, investors now have to evaluate their purchases more carefully and do their homework."

Yun said the improvement in the vacation home market was also anticipated.  "Growth in the equity markets has greatly benefited high net-worth households, thereby providing the wherewithal and confidence to purchase recreational property.  However, vacation-home sales are still about one-third below the peak activity seen in 2006."

About 13 percent of all 2013 sales were of vacation homes, up from an 11 percent share in each of the previous two years. This was the highest that recreational property share has been since 2006.  The portion of sales accounted for by investment activity fell to 20 percent in 2013 from 24 percent the previous year.

The median investment-home price was $130,000 in 2013, up 13.0 percent from $115,000 in 2012, while the median vacation-home price was $168,700, up 12.5 percent from $150,000 in 2012.   The median owner-occupied home price was $189,000, a 2013 increase of 11.2 percent.  All cash purchases were common for both investment and vacation home transactions as were large down payments.  Forty-six percent of investment purchases were all cash while the median downpayment for buyers obtaining a mortgage was 26 percent.  The median downpayment for mortgaged vacation homes was 30 percent although 38 percent were all cash sales.  Distressed homes continued to play a significant role in the non-owner occupied market, accounting for 47 percent of investment sales and 42 percent of vacation homes. 

While NAR said lifestyle factors were the primary motivation for vacation home buyers and rental income was driving investment purchases, the data also shows some blurring of the lines.  Five percent of vacation-home buyers reported they had already resold their property and while 9 percent plan to do so within a year. Buyers plan to own their recreational property for a median of 6 years, down from 10 years in 2012.

Yun said those figures "reflect the 28 percent of recreational property buyers who said they purchased to diversify investments or saw a good investment opportunity."   Eighty-seven percent of recreational buyers did state an intent to use their property for vacations or a family retreat and 31 percent say they will eventually use it as a primary residence; 23 percent intend to rent the property to others.

Forty-one percent of vacation homes purchased last year were in the South, 28 percent in the West, 18 percent in the Northeast and 14 percent in the Midwest.  Sales of investment properties followed a similar pattern with 38 percent purchased in the South, 25 percent in the West, 18 percent in the Northeast and 19 percent in the Midwest.

Fifty percent of investment buyers said they purchased for rental income, 34 percent wanted to diversify their investments or saw a good investment opportunity, and 22 percent bought for a family member, friend or relative to use.  Seven percent of investment homes purchased in 2013 had already been resold by the time of the survey and another 10 percent were planned for sale within a year. Overall, investment buyers plan to hold the property for a median of 5 years, down from 8 years in 2012.

The typical vacation-home buyer was 43 years old, had a median household income of $85,600 and purchased a property that was a median distance of 180 miles from his or her primary residence; 46 percent of vacation homes were within 100 miles and 34 percent were more than 500 miles. Investment-home buyers in 2013 had a median age of 42, earned $111,400 and bought a home that was relatively close to their primary residence - a median distance of 20 miles.

NAR conducted its 2014 Investment and Vacation Home Buyers Survey in March 2014 among buyers of about 2,203 homes purchased during 2013 from a representative panel of 2,008 U.S. households. The survey controlled for age and income, based on information from the larger 2013 NAR Profile of Home Buyers and Sellers, to limit any biases in the characteristics of respondents.  NAR's analysis of U.S. Census Bureau data shows there are 8.0 million vacation homes and 43.7 million investment units in the U.S., compared with 74.7 million owner-occupied homes.

For more information on this or owning a vacation home in Telluride, please contact Telluride Real Estate Corp. at 970-728-3111, www.telluriderealestatecorp.com or info@telluriderealestatecorp.com.

From The Telluride Watch: Telluride Tourism Up in 2013

Telluride Tourism Sees Growth in 2013

by Samuel Adams

Mar 12, 2014

TELLURIDE – Things are looking up for Telluride’s tourism industry, according to Matt Skinner, chief operating officer of the Colorado Flights Alliance, Michael Martelon, president and CEO of the Telluride Tourism Board, and Brad Larsen, director of sales and marketing at the Telluride Ski Resort.

The three gave presentations outlining the strength of the region’s tourism economy last week during TTB’s annual meeting at the Sheridan Opera House.

More people are flying to the region, said Skinner, who oversaw an increase in 10,000 seats sold in 2013, increasing total seats sold from 54,000 to 64,000. The increase, he added, was due in large part to the addition of Allegiant Air, a low-cost airline.

But he said his work is not done – CFA was working to secure more flights from large hubs like Dallas, Atlanta, Chicago and others.

“Our continuing mission is to add airline access to the Telluride and Montrose region,” Skinner said in an interview after the presentation. “We had a solid jump in seats and traffic, and we look forward to continuing that in the next couple of years.”

While CFA increased seats and passengers, more visitors are skiing this winter season, said Larsen during his presentation, who said that skier visits are up nine percent from last year, and Telski’s lodging options are seeing a 19 percent increase in occupancy.

On top of all that, last year’s combined winter and summer tourism revenue in Telluride and Mountain Village increased by $16.4 million compared with 2012, said Martelon.  

“I just report the numbers,” said Martelon during the presentation, which was packed with local realtors, business owners and elected officials. “We try to enhance the brand, but you’re responsible for that growth.”

Martelon pointed to an increase in revenues per available room, using RevPAR, a hospitality performance metric that he said reflects the overall health of the region’s tourism industry. RevPAR, he said, is calculated by multiplying a hotel’s average daily room rate by its occupancy percentage, which has been increasing in Telluride and Mountain Village since he joined TTB in 2011.

“RevPAR is one of many key metrics that we use to gauge the lodging performance in the region,” he said during the presentation. “Ultimately our organization is funded by the lodging community, so it’s imperative that we support their success. RevPAR is one way to measure that success.”

With Telluride’s improving tourism market, the towns of Telluride and Mountain Village have felt the buoyancy.

“We were 9.5 percent over what we budgeted for 2013 in sales tax revenues,” said Telluride Town Manager Greg Clifton, after the meeting, “and I think this is reflective of strong growth throughout the year, particularly during the summer months.”

Similarly, Mountain Village’s sales tax revenues are growing. The town saw an average growth of roughly 18 percent in the core winter months (Dec.-March) and summer season (June-Sept.), from 2011 through 2012 and 2012 through 2013, according to Martelon, who added March 2013 was the highest tax revenue month in Mountain Village’s history).

In addition to a healthier national economy, longstanding summer festivals that are growing in attendance and increased heritage tourism, Clifton attributes some of the town’s growth to TTB’s “remarkable” efforts to market the destination.

Last year, TTB, CFA and Telski announced a new combined marketing campaign to promote Telluride using digital media.

“The integrated approach and shared analytics between the three entities is a first [for all three of us], and I think it’s working to promote the destination,” Martelon said in an interview.

With the increase in skier visits and the town’s recovering tourism industry, Larsen implemented a survey method asking guests about their experience at the resort, another industry formula called the Net Promoter Score.

A “promoter” is a respondent that gives their experience at the resort a score of nine or ten (one being the least satisfied, ten being the most satisfied). A “passive” respondent, said Larsen, gives the resort a seven or eight, and “detractors” give the resort between a one through six.

“Our core net promoter score that our or organization looks at every day is the ‘Likelihood to Recommend’ [the resort to others] score,” said Larsen. “Our season-to-date score is now 81. This score is excellent.”

Telluride Included In The Top 10 Ski Resorts For Real Estate Investing As Reported By RealtyTrac

Based on factors such as distance from the nearest airport, median list price, unemployment rate, gross rent yield, rental vacancy rate and "pure awesomeness factor," RealtyTrac has ranked Telluride #10 in their rankings for "The Best Ski Resort Towns For Real Estate Investing."

For more information on Telluride real estate, please contact Telluride Real Estate Corp. at 970-728-3111, info@telluriderealestatecorp.com, or visit www.telluriderealestatecorp.com

Men's Fitness Names Telluride Best Ski Trip For Views

From Men's Fitness:

BEST FOR VIEWS

Telluride, CO

There are few authentic-feeling ski towns left, and Telluride is one of them. Located at the end of a box canyon, there’s only one road in and one road out. It has super-remote access to more than 2,000 acres of terrain, 127 trails, bowls, and several long four- to five-mile runs. It’s the kind of town where everyone knows everyone, and there’s a “free box” in the center where people can trade gear. After you’re done shredding the slopes, you can go to Brown Dog Pizza for a cheap slice and pint of Pabst, like a true Colorado native.

www.telluriderealestatecorp.com, info@telluriderealestatecorp.com, 970-728-3111.

From The Telluride Watch: TEX Receives Improved Weather Forecast Service

TEX Receives Improved Weather Forecast Service

by Samuel Adams

Dec 29, 2013 | 213 views | 0  | 12  |  | 

TELLURIDE – Every holiday season, visitors flock to Telluride to ski, and many arrive here through the Telluride Regional Airport, TEX. But with the region’s snowy December and frigid temperatures, landing at or departing from the Telluride airport – the highest in North America – can be a tricky procedure, given its short runway and variable winter weather conditions.

This month, TEX began receiving Thermal Aerodrome Forecasts, or TAFs, a service provided by the National Weather Service. Every six hours, TEX receives a detailed TAF forecast, specific to a five-mile radius around the runway. TAFs provide TEX with accurate accounts of such variables as wind speed and direction, visibility, precipitation and wind shear.

TEX air traffic control staff receives the reports from the NWS, and then relays the latest information about weather conditions to pilots.

Since the airport began receiving TAFs, airport operators and pilots have been able to make better weather planning decisions, said TEX Manager Rich Nuttall.

“Additional weather forecasts we receive, coupled with the advanced radar coverage that went into operation this past summer, are continued improvements that will help our airport,” he added.

This summer, TEX installed wide-area multilateration systems, which offer improved radar capabilities for air traffic control, which help to better-predict weather changes. 

NWS meteorologist Jim Pringle is enthusiastic about TEX’s recent improvements in weather prediction, thanks to the TAFs. “Some of the smaller regional airports that don’t have access to TAFs can’t anticipate all these variables in the weather that are essential to safe flying,” Pringle said.

While TAF reports contain much crucial information, the most important is probably its updates on wind shear, specifically regarding the way in which the wind’s speed is changing and its direction over the runway.

“What’s so important about TAFs is that they [detect] wind shear near the runway and report [it] to the airport,” Pringle said. Without TAFs, he explained, “the airport doesn’t know about wind shear until a pilot tells them.” 

Telluride Real Estate Corp. can be reached at www.telluriderealestatecorp.com, 970-728-6655, or email info@telluriderealestatecorp.com. 

From The Telluride Watch: Four Telluride Athletes Vying For Olympic Spots

TELLURIDE – Just over six weeks remain until the Olympic torch arrives in Sochi, Russia, heralding the start of the 2014 Winter Olympics and carrying with it the aspirations of thousands of athletes from around the world.

The countdown to this winter’s Olympic Games is especially meaningful for four Telluride athletes, who are in striking distance of securing coveted invitations to compete at the pinnacle of the world’s winter sports competition. Mogulists Joe Discoe and Keaton McCargo, snowboarder Hagen Kearney, and freeskier Gus Kenworthy have all earned spots on the U.S. Ski or Snowboard Team this year, thus embarking upon a fast-paced few weeks of high-level competitions that could pave the way to Olympic Team berths.

Yet despite the hype surrounding the weeks leading up to the Winter Olympics, it’s business as usual for Telluride’s elite athletes, who each say they are tackling the competitive road ahead with the same goals in mind as they would in a non-Olympic winter. That is, to reach their own personal bests at every opportunity.

“You go to every single event thinking the same thing – that is, you want to win,” explains Discoe, who is a member of the U.S. Ski Team’s Freestyle Moguls B team and has been competing at the World Cup level since 2010. “So there hasn’t been a big change in how I’ve prepared for this year, even with it being an Olympic year, because I’m pushing myself to be the best and to try to work harder every season… although it does add a little more pressure.” 

Discoe’s pre-Olympics competitive schedule ramps up the first week in January with a World Cup event in Calgary, Canada. He has already burst onto the competitive stage with gusto this ski season, taking 11th place at last week’s World Cup event in Finland. That’s his best-ever start to the competitive season, he says, and comes on the heels of a succession of significant finishes last season – among them, taking his first career World Cup podium finish at Inawashiro, Japan, and going on to earn gold in dual moguls at the 2013 U.S. Championships.

Kearney, who is a member of the U.S. Snowboardcross team and has been competing in World Cup events for the past two seasons, also says that he plans to tackle each coming race as its own distinct event, and not necessarily as a precursor to a potential Olympics start. “At the end of the day, all of these competitions are potential Olympics qualifiers. So that’s good to know. But once I’m in the starting gate, all of that goes out the window,” he says, adding that he expects the competitive pressure to build as the calendar gets closer to February 7, the first day of the 2014 Olympics.

Kearney says he is entering this season with more confidence than in years past thanks to the momentum he is carrying from last season, which culminated in a top-ten finish at the season finale World Cup in Spain. He also celebrated a first-ever World Cup SBX team win last winter as well.

Newer to the professional circuit is Telluride teenager McCargo, who made it onto the U.S. Ski Team’s radar last season with her two NorAm Cup wins and three NorAm podium finishes (the NorAm Cup tour is one competitive level below World Cup.)  She finished last winter on a high note, winning both single moguls and dual moguls at the FIS Junior World Championships in Valmalenco, Italy.

As a member of the U.S. Ski Team’s Freestyle Moguls C Team, McCargo says her sights are set on earning a starting spot at upcoming World Cup events. She’ll have that chance this weekend, as she competes at the U.S. Selection Event in Winter Park. The event is used to qualify skiers to start in NorAm competitions and U.S. World Cups.

McCargo says she’s feeling confident, despite the added stress of being continually reminded that this winter marks an Olympic year. “I want to think I’m trying hard and doing my best at tackling this season like any other season,” she explains. “Now I’m in a good position to get on the World Cup, so that is my goal for now.”

Kenworthy, who is on the Freeskiing Halfpipe and Slopestyle Pro Team, will have his shot at winning an Olympic berth in coming weeks as well, as he embarks upon a fast and furious schedule of high-level freeskiing events. Four Olympic qualifying events remain before the U.S. Olympic freeskiing team will be named, with Kenworthy slated to start at one of those this weekend in Copper Mountain. He’s hoping to carry some momentum into this winter from his successful 2012-13 season, in which he won a Euro X Games bronze medal, won slopestyle at the SFP World Championships, and was ranked the top skier within the Association of Freesking Professionals for the third consecutive year.

While earning a U.S. Olympic Team berth will prove challenging for all of these athletes, requiring consistently spectacular results throughout the next five weeks of competition, the fact remains that having four athletes in the running for a Winter Olympics start speaks highly of Telluride’s reputation as the home of elite winter sports athletes. Kearney points to the local education system, which has historically been highly supportive of young athletes pursuing their athletic aspirations. The Telluride Ski Resort also deserves credit for breeding high-level competitors, he says, just by virtue of the terrain found here. Local ski programs, like the Telluride Ski and Snowboard Club, offer young athletes a tremendous springboard for establishing professional careers, he adds.

“Telluride is one of the best mountains in the United States, with some of the best coaches in the world and the most motivated kids,” McCargo said. “That, added with the support we get from the community, means the most to our success.”

For more information, please contact Telluride Real Estate Corp. at 970-728-3111, info@telluriderealestatecorp.com or visit www.telluriderealestatecorp.com.

16" Of Snow In Telluride In 48 Hours!

From the Telluride Ski Resort:

Over 7.5 feet of snow this season!

Telluride is starting the season with some of the best snow conditions in years. By the end of November, 75 inches of snow fell in Telluride, and already in the first week of December another 16 inches has been added to the total. All this snow has made more terrain open to the public earlier than in past years. Here's a breakdown of upcoming lift openings:

Plunge Lift (Lift 9) - This Saturday

Lift 9 will open for the season on Saturday with access via Telluride Trail to Lookout and the 4,5,6 Loop. See Forever and the 4,5,6 Loop will also re-open on Saturday morning.

Prospect Bowl, Lifts 10-14 - Saturday, Dec. 14th

Prospect Bowl, with lifts 12 and 14, will open for the season on Saturday, December 14th. Lift 10, with beginner and intermediate terrain accessed via Lifts 11 and 13, will also open on the 14th.

Oak Street (Lift 8) and Coonskin (Lift 7) - Saturday, Dec. 14th

Lift 8 will run daily from 9am to 1:30pm starting on December 14th. Lift 7 will open on December 14th and will run daily from 9am to 4pm.

For more information, please contact Telluride Real Estate Corp. at 970-728-3111, info@telluriderealestatecorp.com or visit www.telluriderealestatecorp.com.