The Pine Beetle has devastated our forests in Summit County and many Silverthorne, Frisco and Breckenridge homes have felt the effects as one after another, trees have died.  I have experienced it first hand, as my home in Mesa Cortina, which backs to Forest Service land, has been in the thick of it.  The beetle hit Grand County first and have been moving south.  Currently, most of the lodgepole pines in the forest around the Silverthorne area  are brown, and more will turn brown next year as the beetle infest new trees when they fly in July.  Our neighborhood has been diligent about spraying and taking out infected trees, but it is almost useless as there are so many beetle.  The best we can do is cut down dead trees to reduce the fire danger.

pine beetle killed trees

Frisco is being hit as the beetle are moving further south, and Breckenridge is also beginning to see brown trees. Many of the people searching for Summit County real estate want cabins in the woods and don't want to feel that they are in the suburbs.  For that reason, although we have few "cabins", wooded area are very popular with buyers, and homes that are adjacent to Forest Service land sell for a premium.

Most of us who live here realize that mother nature will have her way, and when the trees are dead and removed, the aspen, spruce and young pines that are in the understory will get more light, grow faster, and fill in fairly quickly.  Our views will improve and the autumn will be even more beautiful as the aspen leaves turn.  You can see in this photo to the left that there are plenty of aspen that are still green, and they will flourish without the pines competing for water and light.   Our fire danger should decrease and overall, it won't be such a bad thing.  It will be painful while it happens, as the trees are unsightly until their brown needles fall off  and  removing trees can be expensive.  Spraying the trees during the summer is the only way to protect them and even then it is not a guarantee. 

beetle killed trees

So far, I have noticed no decrease in property values due to the pine beetle.  In fact, the average price of homes has increased more than 16% over last year and there are 25% fewer homes and condos on the market.  Buyers are asking Sellers to identify and remove all beetle trees before the closing occurs.  They know there is a chance that more trees could be infected the next year but are willing to accept the risk as part of living in the woods. Every part of the county has good views, and people will appreciate being able to see them from their homes, even though they mourn the loss of some trees.  In the past it has been hard to have both trees and views, but now it may be possible!  These photos were both taken in the Forest lands behind my home.  The Forest Servide will shortly be taking the dead trees out as part of a wildfire mitigation plan.

 

18 Comments on Will Summit County property values be affected by the Pine Beetle epidemic?

JUN
10
2007

That's the first we have heard of the pine beetle.  Very informative.

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4:04pm • #1
5 Featured Posts
You are lucky not to have it in New Hampshire.  Beetles of some sort are affecting the entire Rocky Mountain region, and even the Pinon pine in New Mexico.  I was in Sun Valley Idaho last winter and their Spruce trees are being hit.  Global warming is getting the blame as the temperatures no longer drop to cold enough levels to kill the bugs. 
4:08pm • #2
261,881 Points 26 Featured Posts Outside Blog
Joanne; we go through this about every 10 to 20 years - it is devastating while it happens - we have been able to recover - only because they allowed logging for a short time - we have the spotted owl issue here - but to save the rest of the trees they did allow a lot of deceased timber to be removed.
9:29pm • #3
5 Featured Posts
The last time it went through here was around 1985 and when we had two really cold winters in a row it killed the beetle.  Our winters are just too warm any more!  We did have a cold week or two this year, but not cold enough.  The Forest Service will be doing some logging, but only around inhabited areas.  The rest of the forest will just have a lot of standing dead timber in it.  At least we don't have spotted owls, but the lynx and the boreal toad sometimes become issues.
10:02pm • #4
JUN
15
2007
3 Featured Posts
Joanne- I've been surprised at how much it has spread. I also remember the infestation in the 1980s. Hopefully it can be addressed so that we won't loose whole forests.
9:57pm • #5
MAR
01
2008
It has been the real estate marketers in Summit County who have been behind the 16% figure you mention.  It is all about making big money NOW.  This has been coming for years.  The idea of buyers paying hundreds of thousands of dollars to live in a dead forest and waiting until they are 125 years old for the return of mature trees is an unlikely unfolding of the situation.  Greed has driven some very unwise and unstable market conditions in Summit County.
t bill
6:08pm • #6
5 Featured Posts
HI T Bill, I don't disagree with you that greed as caused prices to increase somewhat, but I do take issue that it is "real estate marketers".  Sellers are the ones that set prices, and I often disagree with them, but the market is what determines the prices in the end.  If no buyers are willing to buy, prices come down.  You can see that all over the country. I have not seen instability in this market however.  I am cautious about the coming year, but as long as baby boomers have money and want to buy second homes, and many do, our market will be ok. 
6:25pm • #7
MAR
14
2008
As a former resident and recent visitor to Breckenridge and Summit County, I see a dead and dying forest.  It really started some years ago.  I would have to agree that T Bill has a point about the "Real Estate Marketers".  I know many there.  The Realtor's "line" during the past several years has been along these lines - "There is no more land.  You need to buy now."  Joanne, many, if not most, of your baby-boom buyers rarely spend a day in these homes.  These second-home buyers bought expecting a future much different than what is coming to light now.  It was an investment by the wealthy with more cash than they knew what to do with.  Kind of sad really, to see one after another of the empty homes.  But, that is beside the point.  The real estate that buyers were encouraged to buy before it's all gone is very different now.  Clearly the pine beetle was not a part of the "real estate marketers" sales strategy in recent years.  
DIM
11:58am • #8
5 Featured Posts
Property values in Winter Park have been affected by the Pine Beetle but they are much further along in the cycle than we are here.  People here are aware of it but still are buying property.  More than 2/3 of our business is from second home buyers, and yes, many sit empty much of the year.  We are losing much of our forests, unfortunately.  Thanks for your comment!
12:07pm • #9
JUL
24
2008

The coming "Perfect Storm" for Summit County Real Estate will probably reduce prices significantly in many areas of the county. It's simple economics. When Supply increases and demand decreases, prices fall. Easy credit and plentifull money were a major contributor to risiing prices the past 10 years. The second contributor to rising prices was peoples interest (the people who want to vacation someowhere beutifull), in owning a second home somewhere with allot to do. Those people (70%) of homeowners, also wanted an investment that would appreciate. They all bought, fueled by .COM money and the rising stock market of the 90's and also because anyone could borrow cheap money, causing many people who otherwise would not have the ability to buy a second home (or become a wanna be developer), easily buy a second home or start a development between 1995 and 2007. That artificial demand drove price up above normal levels. Now the easy money is gone (demand is falling off) AND to make matters worse, the economy has slowed down (in other parts of the world more than Summit County). To make it even worse, the tree's (about 70% of them) are all going to look terrible. This will cause less people to be interested in buying a second home here, and more people (especially the people who saw their investment second home) increase in value 100% want to sell. So when the listings (or supply) increase dramatically (we have seen a 30% increase in listings) and demand decreases, prices will fall. I don't care what any bs'ing realtor or lender tells you, prices will fall. Some areas  will fall more than others, but in the end, the days of huge appreciation is over in many pockets of Summit County. And don't let anyone BS you into thinking it's gonna change soon. It will take 50-100 years for the forest to grow back. IF you had the choice of investing your vacation dollars in many different areas, and one of them had 70% of the landscape about to look like crap, would you invest ? You may not stop visting the area, because you will still be able to do the same activities, but you (if you aren't an idiot or extremely rich)would probably not put a substantial amount of risk and or net worth into owning real estate their. Some area's will get price reduction/demand reduction less than others, depending on their exposure to the beetle kill and views/activities and amenities. Any place where their is little or no control over the Pine Beetles and allot of Lodgpole , and has seen significant price appreciation will probably get ugly in more ways than one. I have been through this in other markets and industry's and speak from experience and reason.

9:28am • #10
OCT
10
2008

Hard to disagree with the previous note.  The past decade in Summit County has been a clear example of hyper-inflation in real estate.  Much like the situation in Japan in the early 90's (not to mention the 1920's in the US).  Combined with the destruction of the landscape it seems a massive correction in prices is in order.  And, if you have not been there recently, you probably have no idea how dramatic the death of the forests  and/or how quickly it has occurred. It is hard to even imagine.

8:24am • #11
5 Featured Posts

The pine beetle infestation is minimal now compared to the economic situation in the world.  It has finally affected us and prices, while not in free fall, have not appreciated in the last year.  What will happen in the next six months or a year remains to be seen.  You can see updates on the Summit County market on my main website/blog at www.mountain-living.com/blog

Thanks for your comments!

9:03am • #12
NOV
04
2008

Nobody who can afford Breckenridge is going to buy real estate there. Dead trees are just the beginning of a story that promoted ridiculous home/condo prices over the past two decades - it was obsurd. I'm afraid it is not the place it used to be. The Pine Beetle has destroyed the forests in Summit and Eagle Counties.

2:44pm • #13
FEB
23

It's rainy in February. Breckenridge and Summit County are in very serious trouble. Dead trees are everywhere.

1:03pm • #14
MAY
07

OH MY! It is frightening what has happened to the forest there. It is absolutely unbelievable.

4:47pm • #15
MAY
18

Joanne, I'm afraid you need to update your page. Property values are being hurt. The terrain is turning brown and the decline in value is much more than a general decline nationwide. The notion that  "prices of homes has increased more than 16% over last year" is simply false. I have to assume that statement is from many years ago.

Lauren Wright
5:12pm • #16
5 Featured Posts

Hi Lauren, this post is an old one and is from June of 2006, almost 3 years ago.  Yes, our property values are now decreasing but it isn't because of the pine beetle.  I have yet to have a client tell me that they won't buy here because of the dead trees.  The economy has affected us, as it has everyone else too.   People are cutting their dead trees and some clearing is going on near neighborhoods.  The trees in the National Forest will stay there but will gradually be replaced by young trees coming up, and by aspen.   You can read more current information about how the economy has affected our resort area at www.mountain-living.com/blog.

8:09pm • #17
JUN
02

Joanne --  Visited Breckenridge and wanted to see what was on the internet about the pine beetle. I am extremely surprised to see your comment "I have yet to have a client tell me that they won't buy here because of the dead trees." The fact that prices are so very, very high is of course part of the problem, I'm sure. But, people must be saying "No thank you" because of the pine beetle (and yes prices). It takes decades and decaces for new trees to grow with such a short growing season there. It is really scary and sad.

Gwen
10:57am • #18

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Summit County, Colorado Realtor l Joanne Hanson

Frisco, CO

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Coldwell Banker Colorado Rockies Real Estate

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The Colorado mountains, real estate, ski resorts, lifestyle and vacation homes is my focus. We talk about buying and selling ski condos in Breckenridge, Keystone and Copper Mountain. Homes and land in Frisco, Dillon and Silverthorne are also in our market area
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