Today, June 3, 2007, with a total of 93 lots for sale in Breckenridge, only 12 are priced under $250,000. Of those, 3 are in RV parks and 5 are at an elevation of about 11,000' where summers are very short. Looking at the other end of the price range, 16 lots are priced over $1,000,000 with the highest priced lot being a ski-in/ski-out acre at the base of the Peak 8 base area, priced at $2,500,000. If you don't need as much land you can find a half acre lot for a mere $1,800,000.
These numbers don't really reflect the true state of the market however, at least in the last year. In Breckenridge, since June 1, 2006, 207 lots sold. That could mean that if no new lots come on the market, (which they will), we may only have enough lots available to last less than six months. However, we really need to break it down by price group to get an accurate picture of the market. Of those 207 lots, 91 were listed at $250,000 or less. Today we have only 12 in the same price range. Last year 8 lots listed at $1,000,000 or more sold, and now we have double that on the market. When almost half the sales last year were under $250,000, how are 9 lots today going to fill that demand? My guess is that we won't sell as many as 207 lots again this year. Some of those Buyers will decide that they like Silverthorne too, and there are some very nice lots around the Three Peaks golf course at reasonable prices.
What it does mean is that home prices will continue to escalate. With little land available at a reasonable price, and with the banks telling builders that the land should be no more than 25% of their costs, the only houses that will be built from now on will be well over $1,000,000. Prices in the lower brackets will continue to push up as long as we have a shortage of land. As Will Rogers said, "buy land, they ain't making any more"!
Imagine buying these and having to keep them as part of your home! 
Comments(12)