Snow means that we will have more terrain open at the ski areas.  It means that more people will come up here for ski trips and they will be renting condos.  It means that people may decide that they don't really want to fight the snowy roads and the traffic on Sunday night as they head home, and perhaps they will decide to buy a colorado condo and stay longer! 

Not many places love getting snow, but we do.  Our economy in the mountains of Colorado relies on it.  We have four major ski areas in Summit County; Breckenridge, Keystone, Copper Mountain and Arapaho Basin.  More than two thirds of our housing is owned by second home owners, and some of those people also rent their homes and condos on a part time basis.  The more snow we have, the better we like it. 

Many people come here for the winter, and then discover our summers.  Summer is even more incredible (and much shorter) than the winter.  Daytime temperatures are usually in the 70s.  A hot day is 80'.  We don't have air conditioning as we don't need it and opening a couple of windows is sufficient. 

I will say that last year we had too much snow.  You don't hear me saying that very often.  We didn't get snow until Thanksgiving, and once it started, it didn't stop.  That is ok until April, because we love powder days, but he ski areas close mid-April.  This year, many ski areas closed with an 80" base, but people in Denver are playing golf and are no longer interested in skiing.  If there are no paying customers, it does no good for them to stay open.   Locals all have season passes so they make no money if we ski longer. 

In May, we are ready to get out in the garden and on the hiking trails.  Last June we still had so much snow on the peaks that we couldn't do any mountain hikes until the middle of the month.  It was lucky for us that it melted slowly because we could have had flooding otherwise, but we all had a serious case of cabin fever by the time June 1st rolled around. 

Little snow came this fall, and we were all getting anxious.  With the economy the way it is, having no snow would have been the death of many local businesses.  But now it is snowing!  Copper Mountain has had 26" in the last three days and we are hopeful that last years pattern will repeat (except it can stop May 1st this year!)

Traditionally, in second home markets, it has been much easier to get financing than in primary home markets.  About a third of our transactions were cash, which of course, is the easiest of all!  Today, financing has become an issue when condos and townhomes are being purchased.  Many people buying second homes prefer a condo as they don't have to worry about maintenance.  The roof and exterior are taken care of by the homes association. 

It has always been the case that the property had to qualify together with the Buyer, but the lenders now must approve all the details of the HOA.  They look at Decs and Bylaws, number of rentals (do ski condos with 3-7 day rentals count?) whether there is a front desk or not, and how much money the HOA has in reserves.  I recently wrote a long post about the changes we are undergoing, and can't copy here for fear of "duplicate content"!  If you would like to read more about our Summit County, Colorado real estate issues and how they compare to yours, just click the link above.

Loans are now an issue for our markets too!  Is your market affected the same way?  Perhaps you don't have the percentage of condos that we have, but most vacation home markets do.

The IRS recently issued a ruling that will force second home owners to rent their properties if they want to sell and do a 1031 tax deferred exchange into another property.  With two years of rentals and only 14 days or less of owner use per year, they will be able to do the exchange and defer taxes (assuming they will rent the replacement property as well).  In the past, the rules were not clear, and many who only rented occasionally and had a lot of owner use went ahead and did the 1031 as there was nothing that said that it would not be allowed. 

The new ruling may have an impact on people who do not use their second homes much anyway.  I would think that, if they intend to sell in the future, they would make sure they have the two years of records showing owner use vs rentals.  In my market, many people live only an hour or two away, and use their second homes much more than 14 days a year.  They will not be willing to curtail their use, and may just bite the bullet and pay the taxes if they sell.  Perhaps they will decide not to sell, and just hold on to it to avoid paying the taxes.   The good news in most resort areas will be that there is a gain on which to pay taxes, unlike many metropolitan areas of primary residences. 

The lines between second home and rental property are now going to be much more clearly defined! 

Is there such a thing as affordable real estate in Summit County?  

One of the areas that is seen as a good value is Wildernest.   It is near Silverthorne, but not actually in the Town of Silverthorne.  Wildernest is a large subdivision that sits at the base of Buffalo Mountain.  (A great hike, by the way!)  There are a lot of condominium complexes on the hillside and it has more reasonably priced real estate in it than many other parts of Summit County.  The name is confusing as there is also a property management company named Wildernest, and they handle a lot of the properties there, but they are not exclusive to the Wildernest area.    You can see a list of properties they manage at http://www.wildernesthoa.com/.  There, they have all the Home Owner association documents online for the condo complexes and home owner associations managed by Wildernest Property Management. 

When people are looking to buy a condo as a short term rental, we suggest that they find one that has access to a hot tub, as many skiers like to soak in the hot tub at the end of the day and having it improves the rental income.  Some of the Wildernest complexes that fit that requirement are Timber Ridge, Buffalo Ridge, Buffalo Village, Treehouse, Snowscape, Gore Trail, Watch Hill, Salt Lick, Prospector Village and Forest Park.  Others that allow homeowners to have their own hot tubs are Miners Creek, Buffalo Mountain Townhomes, Saddle Ridge and most of the duplexes that are dotted over the mountain.  Condo complexes that don't have hot tubs are turning into local's housing, with second homes scattered among them.  Those are Aspen Shadows, Villamont, Silver Queen West, Silver Queen East, New Lamartine, Buffalo Woods, Snowbird, Woodworks and Summit Point.  A new townhome complex, Rolling Ridge, is now under construction at the base of Wildernest.  It will have roomy townhomes with garages that will be priced between $500,000 and $600,000. 

The Summit Stage has a bus that services the area, connects with the Silverthorne busses, and from there enables people to access other parts of the county.  Wildernest is not far from I-70 and is central to the four ski areas in the county, being about 20 minutes from Keystone and Copper Mountain, and 25 minutes from Arapahoe Basin and Breckenridge.  Vail is only 30 minutes away in good weather. 

The names of subdivisions in Summit County are often similar to each other.  To make things even more confusing, nearby, in the National Forest, is the Eagles Nest Wilderness area, which people often call Wildernest.  There is also a subdivision named Wilderness (no T on the end)  in Breckenridge. 

If you are looking for a place has great space for the money, check out Wildernest.  In our MLS you would need to search the Silverthorne area, as the two areas are combined together.  Let us know if you have any questions.  We know the area well!

I am the representative from my Summit Association of Realtors to the Rocky Mountain Resort Alliance.  We meet three times a year and compare notes on our markets, trends and activity levels.  RMRA is composed of Boards of Realtors in resort areas in the Rocky Mountains, from Whistler  to Park City to Telluride. 

Each representative  gave a report on the state of the real estate markets in our areas, comparing sales for 2007 to 2006, and reporting on what we are seeing as trends for 2008. The general trend seemed to be very similar to what we have in the Summit County Colorado real estate market, where our number of sales was 14% lower than a year ago, but the average price was up 19%.  Total dollar volume was up about 14%.  Fewer units sold could be construed as a weak market except for the fact that we did not have a lot to sell most of the year, and as a result, with more Buyers than Sellers, prices increased dramatically. 

The Telluride representative reported that high end single family properties were still moving strongly; that Buyers are cautious but still buying.  In the Mountain Village, properties are selling for about $800 a sq ft with the highest sales currently around $1200 a sq ft.  Two new projects are scheduled to be built soon, and pre sale prices are projected to be around $1900 to $2200 per square foot.  Those prices are much higher than we are seeing at the base of Peaks 7 and 8, where ski-in Breckenridge condos are selling for $1000 to $1500  per sq ft. 

Jackson Hole, Wyoming has three new condotel projects underway, and they will be selling for $1300-1600 per sq ft.  They also had a lower number of transactions and higher sales.  Commercial property sales in Jackson have been very strong this year as well. 

The other Summit County, (Utah), home of Park City and Deer Valley, also saw increasing prices in the high end.  Lower priced properties that are older and dated have been slower to sell.  We also have seen that Buyers in our county want the remodeling done before they buy it.  Second home owners want a base to play, not another place to work on.  Preparing the home to sell is very important today, and I don't just mean staging, but keep it updated as well.  

Whistler, in British Columbia, Canada, actually had more transactions than the year prior, and prices were up about 8%.  They have a shortage of high end single family homes, which have been selling for about $1300 per sq ft.  The demand from many international Buyers  is causing inventory levels to fall and prices to increase.  The winter Olympics are coming to Whistler soon, and the community will benefit from the amenities that are left as a legacy when the Olympics are done. 

In Vail, new condominiums being built in the Lionshead area are selling for $3000 to $3600 per square foot!  The higher priced units have ski mountain views and a great location, and it just goes to show that Buyers are willing to pay more for a premium location.  The trickle down effect from the high end condos and homes caused lower priced properties further away from the mountain to increase too, and it makes  affordability problems for locals, who end up commuting longer distances in order to be able to afford a home of their own.  Most areas are actively trying to provide affordable local's housing. 

Aspen had 19 sales of homes over $10,000,000.  However, they now have enough property for sale in that price range to last three years, so it is possible that prices may moderate a little this year.  The last quarter of 2007 was slower than expected, and they actually ended up about 2% lower in total dollar volume.  New construction in Aspen is running about $3000 a sq ft, while 10-15 year old homes are going for around $1200 per sq ft. 

Overall, with the exception of Sun Valley, who had fires this summer,  prices were up and sales were down because fewer properties were for sale.  Most Realtors are seeing that Buyers, many of whom can pay cash, are cautious but still ready to buy when they find the right property at the right price.  The loan problems haven't really affected the high end of the market.  Sellers need to have their properties priced realistically, updated and staged to sell.  If the location is good and the finishes are updated, the property will sell.  Summit County Colorado vacation home prices are excellent values compared to the other resort areas, and we have the added advantage of being close to Denver, so that most people don't have to drive more than a couple of hours to be at their second home.   Most of our homes and condos, even new construction, are $400 per sq ft or less, something hard to find in other resorts!  We have four world class ski areas within minutes of each other, so you can be away from the ski area base, not pay the price for location, yet still be very close to skiing at your choice of mountains. 

Joan Snodgrass meme'd me.  I thought I had got by without anyone doing it, but she finally caught up with me. 

Many of you know from my posts that I was born in New Zealand, so that makes me a Kiwi.  My family moved to the US when I was 12 and I am now a naturalized American citizen.  We try to go back for visits frequently. 

I married young, leaving college after a year, and have two kids, a son and a daughter.  My daughter Meredith works with me and I introduced her in a post a little while ago.  My son lives in Kansas.  My kids each have two of their own, making me a grandmother before I turned 40.  I raised my family in the Kansas City area, and worked for a department store chain that has since been absorbed by Dillards. 

I trained as a hairstylist and that is what I did for quite some time.  I became a manager, then area manager of the salons the department store owned, and in 1986 they gave me a promotion to district manager, based out of Denver, Colorado.  Bless their hearts, they paid to transfer me there, then 7 years later offered me a buyout with a year of paid salary as they had a restructuring of the management in the stores.  I didn't have to take it and could have kept my job.  After 24 years with them it was like getting a divorce.   When the Dillards takeover occured a couple of years later, people were let go with no notice and little severance pay, so I was really lucky to have had the opportunity to go voluntarily. 

But I was 45 with no college degree and no kids at home any more, and still needed to work.  While living in Denver we had fallen in love with the mountains and had decided that we would like to take an early retirement and move there.  However, this was about 10 years early.   I knew that a being a "beautician" even in a management postion would give me little clout when looking for another job.  With no degree, the only thing I could see was working for myself.  I accepted the buyout with my last day being May 30th,, signed up for real estate school, listed our house for sale in June, sold it in July, moved to the mountains and I was licensed by September. 

That was just over 14 years ago and I have never looked back except to wave goodbye.  My year of salary really helped me get started as it took the pressure of making an income off me for a while and gave me money to advertise and get my website (such as it was 15 years ago) started.  it is much harder for a new agent to start today than it was then.   Today I have a great team that I work with...(I am the old one!) I worked for Century 21 for the first two years, then switched to Coldwell Banker and have been there ever since. 

I have three cats but am allergic to dogs.  As most of you know, I ski, but didn't take it up until moving to Denver at almost 40 years old.  My husband is recently retired from being a contractor so that he can spend more time with his elderly  parents, and my 85 year old Dad is getting a divorce!  My sister is an artist, and I have also taken up oil painting in the last couple of years.  I have a brother who gets to attend car races as he takes care of the wireless communication for the drivers and pitcrews. 

I have been active with my Board, recently having been involved with helping our Association buy a building for our offices.  Today I am the Rocky Mountain Resort Alliance representative from our Board, and I am writing this from Telluride as I am attending a meeting there.  Nice job perk!  I get to ski half a day tomorrow and we have another meeting in the afternoon.  I started the Vacation and Second Home group here on AR and am glad our readership is building.  I think it is important to know what is going on in other resort areas.  I will post a report on this meeting in a day or two. 

My next designation will be Eco Broker as I already have GRI, CRS, MRE (A Colorado designation) RSPS, e-Pro, ABR and ASR.  I believe in education and think I need to know more about environmental issues. 

Thanks for the meme Joan.  I hope you all weren't bored to death! 

Many Summit County homes have nearby fire hydrants that have been buried under piles of snow.  Our recent plentiful snows have been a boon for skiers but make street and home maintenance difficult.   The Lake Dillon Fire Department is asking that if you have a fire hydrant near your home, you "adopt" it, and dig it out!   

Clearing around the fire hydrant will save precious time if it is needed in an emergency.  It is tough enough to fight a fire in freezing conditions, but shoveling around it to find it first makes it that much more difficult.  Notice in the photo the little marker on a metal pole that sticks up above the snow.  We routinely have those on all our fire hydrants, plus our road markers are always double the height that you might find elsewhere.  It helps when the heavy equipment is moving the snow to know where they are.  

The second photo was taken on Granite Street in Frisco.  When we have a lot of snow, it isn't good enough to just move it to the edges of the street. To keep the street at two lanes wide, it has to be piled high.  The town then has to come in with highloaders and trucks and move it elsewhere.  By the end of the season (if it has been a snowy one) the snow storage lots get pretty full!   When I see it snow as much as it has been lately, I wonder how the early settlers in Frisco, Breckenridge and the surrounding mountains managed with just mules and shovels.  It must have been a tough life! 

Does anyone want to share your thoughts?  I am sitting here watching the debates and it seems to me (an indendent voter) that we Americans may have a Democrat in office in about a year. 

I have heard that perhaps the long term capital gain tax rate will go up.  That will affect second home owners and real estate investors.  Will some of those people sell in 2008 so that they get the current 15% tax rate?Some will be able to do 1031 Tax deferred exchanges and it won't matter to them, but many people want to sell their property without buying another one.  Will it cause them to sell sooner than they might have otherwise? 

How about estate taxes?   They have to be redone in the next couple of years; will they go higher?  Democrats  appear to raise taxes but use the money to help people who are in need, although they get accused of creating bigger government.  Republicans, on the other hand, favor businesses and are seen as making the rich richer.  Whether my quick sketches are actually true or not, I don't know, but how would a Democrat in power, perhaps also with a majority in the House and Senate, affect our ability to make a living? 

I look forward to hearing about the vision you see in your crystal ball! 

The post below is a guest blog written by a friend of mine who owns a property management company.  They specialize in high end properties and I have clients who use them as their property management company.  The clients are very happy with their services.  Of course, you will want to do as they did, and interview several companies first. 

I have one thing I want to add to his post, coming from the Realtor perspective: If you would like to do a  Tax Deferred 1031 Exchange  and roll the gain from your current second home into your new one without paying taxes on it, renting it for a while could be to your benefit.  It may allow you to defer the taxes on the gain from your current vacation home that you do not rent, into a new one that perhaps you hope to retire to.  It does mean changing the status of your property for 18 months or so,  and it would also mean renting the replacement home for a while too.  Talk to your tax advisor to see how it might work in your particular situation, but it may be worth it financially to rent your home, even if you would rather not.  A little pre-planning goes a long way!

Here are Mark Waldman's reasons to consider renting your home:

If you own a high-end vacation home, you've probably already thought about whether or not to rent the home while you're not there. For many second homeowners, this makes financial sense. But for other owners, the decision isn't necessarily financial. However, there are many reasons why you need to consider renting your high-end home - and many reasons why a reputable property management firm can actually help you take better care of your property and maintain (or increase) its value. Here are just a few: 

·         Unoccupied homes suffer more damage - Think about it. Mountain homes, in particular, are vulnerable if left unoccupied for long periods. Freezing water pipes are a concern. There's potential damage from violent storms and snowfall. Wild animals can also be a nuisance. If no one looks in on your home for months at a time, even a small problem can turn into a large and expensive one. ·         That "warm, welcome" feeling - Just about any home feels better if it's occupied regularly. It's a subtle difference, but one that you can notice. 

·         Forget the myth about renters "trashing" your home - Your high-end home is going to attract high-end renters - people that appreciate the finer things in life, like your beautiful vacation home. Actually, renters help maintain your property's condition and value by quickly alerting the management company of problems that need to be fixed. ·         Regular cleaning - Another benefit of renting your property is that, after every rental, your home receives a thorough cleaning and dusting. When you do use the property yourself, you'll walk into a clean, fresh-smelling home - rather than starting your vacation with a mop and a feather duster. 

·         Peace of mind - Knowing that your vacation investment is being cared for by a good property management company is a tremendous benefit - whether you live 100 miles or 1,000 miles away. ·         Managing your investment. Your vacation home is an investment. Your other investments - stocks, bonds, funds, etc. - most likely have managers that watch them to make sure they are earning you the maximum return on your money. A good property management firm will do the same for your vacation property investment.   

When you're considering a property management company, there are many factors to consider, including the company's reputation, maintenance and cleaning staff, and commitment to marketing your home to reliable, high-end clients. Ask around. Talk to other owners in the area. And make sure you talk to several firms - it will become obvious which management companies possess the professionalism to help you take care of your investment. 

Mark Waldman is the owner of Summit Mountain Rentals, which specializes in high-end vacation properties in Frisco and Breckenridge, Colorado. Mark also owns the Hotel Frisco, voted "Best Lodging in Summit County" by Summit Daily News readers in 2003, 2005, 2006 and 2007. For answers to your questions on managing you vacation property, call Mark at 1-800-383-7382, or e-mail, info@summitrentals.com. Also, be sure to visit their Web site at www.summitrentals.com. 

Please note that the above photo is of a home in Waterdance, and it is not for rent or sale.  It is simply a photograph of a home that is very representative of homes in the area.

Blog updated:  The box about not having permission to post incorrectly is confusing to me.  I do have permission to post this information, even though I did not write it.  It is not copyrighted...just to clarify the red X below!  I am posting this "pointless" post anyway, as I think my guest blogger had good information to share.

Is 45 Over the Hill?  That is how old you need to be to join the Over the Hill Gang at Copper Mountain.  If your spouse is younger, that is ok as they can still join too.  Only one person in the couple has to meet the age requirements. 

The Over the Hill Gang, or OHG, as the refer to themselves, is a ski club at Copper Mountain.  A similar group, called Over the Hill Gang International, skis at Breckenridge and Keystone, but they are two separate clubs.  The group at Copper skis on Saturday, Sunday, Tuesday and Wednesday with Guides who are members of the Copper Mountain Ski School.  That allows the members to be able to ski through Ski School lift lines which are much shorter during busy periods.  The Guides offer Gang members clinics and workshops on a regular basis, in which members are able to participate for a small fee.  When not sking in clinics, the members and Guides ski in small groups on terrain that is comfortable for everyone in the group. The group "No Worries Mate" skis green runs at a comfortable rate of speed for beginning skiers, or skiers who are rehabilitating from an injury.  Many of the members ski with replacement knees and hips and are not willing to stop for something so minor!   They might slow down temporarily, but the "No Worries" group does not often have anyone skiing in it! 

"True Blue" skiers stay on groomed blue runs, with their preferred terrain often being under the Timberline chair where the snow is usually better and the crowds less.  Many of the members in this group are looking to learn how to ski bumps and perhaps some steeper, black runs.  With clinics and encouragement, most of the skiers in True Blue  move up to "Groomed Zoomers".  Skiers in this group like a little more speed, but they often break up into sub groups to ski either bumps or just grooomed runs.  Their favorite runs are Triple Treat and Golddigger when freshly groomed. 

The top group of skiers go by the name of "Club Incline", and to ski with this group you must be able to ski anywhere on the mountain.  They might ski Tucker, Resolution Bowl or any of the gladed trees runs at Copper, and perhaps that would be after starting out in Spaulding Bowl.  If the snow is good, you will find them there! 

If you are not quite ready for anything thrown at you, but are a confident skier who skis 'almost' anywhere then you want to join the group with the largest membership, which is "Club Decline".  They ski bumps, powder, grooomed, ungrooomed, bowls, trees and steeps, but perhaps not at full tilt like Club Incline.  They are still better than 90% of the skiers on the mountain, and when you realize that most of these skiers are over 55, you know that they are not opting for rocking chairs as they get older!  The majority of skiers in OHG are bikers, hikers and are extremely active, physically fit people year round. 

To join the club, which is headed by Joe Quarantillo of Copper's Ski School, ohg@coppercolorado.com all you have to do pay your dues and buy your pass.  You will find all the information at http://www.coppercolorado.com/lessonsrentals/ohg/index.htm  Not only do they ski in the winter, but the club offers many summer activities, plus social opportunities.  It is a great way to meet other people with similar interests.  I have guided for OHG now for about 14 years, and constantly admire the fitness level of the members.  There is no getting them down.  We have many members well into their 70s and even a few in their 80s who ski 100 or more days a year.  How is that for a goal?  After I started skiing with OHG, it became one of mine.