Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Sept. 9, 2022

Will higher interest rates impact Colorado ski real estate?

From our friends at Fairview Lending. All opinions are that of the author. 

 

Depending on the Colorado ski town, cash transactions make up between 30-75% of all closed transactions.  With this many cash transactions, what do rising interest rates mean for sales in the various ski towns.  Will there be a slow down  in ski real estate like we are seeing in other markets throughout the country?

 

Why would cash transactions be impacted by rising interest rates?

It seems counterintuitive to think that interest rates would impact cash transactions, but they do.  Most “cash” transactions use some form of leverage.  For example if someone were buying a home in Steamboat or Aspen, in order to close quickly they likely would pull money of a  line of credit (unsecured, secured by stocks, secured by another house).   This is typically short term and then they would put longer term financing in place.  With interest rates around 3% less than 6 months ago, this strategy worked great especially with interest rates as low as they were.

 

Rising interest rates change the cash equation

With rising interest rates even cash buyers are impacted. As mentioned above the overwhelming majority use some sort of leverage.  As interest rates have risen so rapidly and are expected to continue everyone is impacted even the person buying a 3 million second home in “cash”.

 

Rising interest rates are a “symptom” of the economy

Although rising interest rates are driving considerable behavior changes, they are not the only variable at play.  For high-net-worth borrowers, we have also seen substantial losses in the stock market and an uptick in talk about a recession.  Although interest rates are a large driver, I would be remiss to say that they are the only driver slowing down high-end ski real estate.  General economic conditions including a reset in the stock market along with recession talk are also large contributors to the slow down in real estate prices.

 

What do rising interest rates mean for Colorado ski real estate sales and prices?

As interest rates continue to rise, even Colorado ski towns with a substantial number of cash transactions will be impacted.  In Aspen, June signed contracts for single-family homes plummeted 71.4% year over year, with new listings rising 33.3% in the same period. Signed contracts for condos dropped 80% compared to last June.

Summary

I see most mountain towns values coming in flat to a 5-10% decline over the next 6 months or so. Remember this is after multiple years of 30% plus gains in many of these markets.  As we are seeing in Aspen and various ski towns, there is definitely a change in the air and one of the prime culprits is higher borrowing costs.  The higher rates will even impact the most expensive markets in the country like Aspen that has one of the highest percentage of cash transactions.  On the flip side, the good news for basically every mountain town is that there is not much new inventory coming on the market which should limit the downside risk

Posted in Market Updates
Sept. 9, 2022

Upcoming Short-Term Rental Rules in Frisco and Silverthorne

The towns of Frisco and Silverthorne will be the next to crack down on short-term rentals. Here's an update from the Summit Association of Realtors Executive Director about what to expect. 

SILVERTHORNE:

The Town of Silverthorne will host 3 Open Houses on Monday, Sept. 12 to get feedback from the Public on a proposal to cap STR's at 10% in most neighborhoods around Town. The other areas in the Town Core and along the river will be capped at 50%. This proposal will allow 400 additional STR permits.

Please plan to attend an Open House on Monday to give your input! There is also a short survey you can take.

Short-Term Rental Open House

Share your thoughts on short-term rentals in Silverthorne by attending an Open House on Monday, Sept. 12 at the Silverthorne Pavilion. Town staff will be on hand to discuss the concept of capping the number of short-term rentals in Silverthorne from: 

  • 7:30 to 9:30 a.m. 
  • 11:30 a.m. to 1:30 p.m. 
  • 4:30 to 6:30 pm.

Light refreshments will be available at all open house times.

You can learn more about short-term rentals in Silverthorne and take a quick online survey here. 

 

FRISCO

The Town of Frisco will have an update on an ordinance to cap short-term rentals at 22%. The staff recommends the ordinance change from a 22% cap to 25% due to a Court of Appeals ruling in New Orleans. The Town previously wanted an exempt status for local homeowners to be able to rent out their properties when they go on vacation.   The Court of Appeals in New Orleans struck down a similar ordinance in August. Staff also suggests that Tuesday night's first reading and vote on the ordinance be tabled. The Town currently has 20% STR's. 

The Town has made it clear they would like to hear from all affected communities. Please plan to attend the Council Meeting on Tuesday, Sept. 13, at 7:00 pm.

SAR will issue a formal Call for Action on Monday, but we want you to put the date and time on your calendar and plan to attend!

Attached are the staff memo and the Court of Appeals ruling. Below is an article to the New Orleans ruling:

https://www.usnews.com/news/politics/articles/2022-08-23/new-orleans-short-term-rental-rule-struck-down-by-court

July 5, 2022

The Market has Shifted

It's no secret the Fed's plan to slow down the real estate market is working. Here's what's happening in Summit County

The high Number of new Listings is Normal

In June 2022 the Summit County MLS had 483 new real estate listings. If you've been subscribed to my real estate listing alerts, it may have seemed like everything is on sale. However, that's only because we were bouncing back from a near record low number of listings and we're finally seeing a slow down in demand. But in reality, June is always the busiest month for new listings in Summit County. 

New Listings

 

Active Listings are up but Inventory is still low

There has not been this many available mountain properties for sale since August of 2020. But the June numbers of 1,110 Active Listings is still relatively low compared to our pre-covid inventory numbers. As I mentioned above, June is always the highest number of new listings so even if demand just stays flat, expect active listing numbers to trend back downward. 

Active Listings Summit County June 2022

 

Months Supply of Inventory is up, but still low

Months Supply of Inventory is calculated by determining the number of homes sold per month and dividing by the total number of properties for sale on the last day of the month. Much like above, we're headed back towards a more normal level of supply but Summit County is still historically low. 

Months Supply of Inventory

 

What's happening with pricing? 

June 2022 price per square foot is up 19.2% from June 2021 but we are seeing a slight decrease from the April 2022. If I had a crystal ball, I think the April high would be the record for around the next year. We should get back to a place where negotiations can occur between buyers and seller. However, I am not predicting a long-term large price drop. 

Summit County Price per Foot

 

According to the Pulsenomics 2021 Q3 Home Price Survey. Prices are expected to continue to appreciate until 2025. With most of the appreciation having already occurred, and modest appreciation to follow. If you're looking to purchase, this means waiting will cost you, not just with home price but also with interest rates continuing to rise until Summer 2023. 

 

Summary

We're getting back to a more normal market but that doesn't mean we're in a crash. Properties are going to take longer to sell but in the long-term there are still record high prices to be seen in Summit County. If you're ready to buy now, I think you're in a great place to negotiate below list price and look back at yourself like a winner. All that being said, we are in unique times with the treasury raising interest rate while entering a recession (normally it's opposite). I would not recommend overextending yourself for a second-home right now but if something is comfortably in your budget, go for it!

Posted in Market Updates
May 17, 2022

March 2022 Market Analysis-From our friends at Land Title

To Our Summit County Customers and Community,

Across Summit County, March saw tight inventory and soaring demand. Prices remained high with the average residential price at $1.3 million for March.

 

Here are highlights:

  • Market Analysis by Area for March 2022: There were a total of 165 transactions and $188,605,550 in monetary volume. The average transaction price for all 18 reported areas, plus Deed Restricted transactions, was $1,166,957. The average residential price was $1,302,323 and average residential PSF was $810.

  • Market Analysis by Area 2022 (3 Months) YTD: There are a total of 396 transactions with $475,025,520 monetary volume. The average transaction price is $1,246,443, the average residential price is $1,346,963 and the average residential PPSF is $772.

  • Market Snapshot for FULL Years 2022 vs 2021: Average Indicators for $: Single Family +33, Multi- Family +9% and Vacant Land +32%. Median Indicators for Single Family +39%, Multi- Family +5% and Vacant Land +16%.

  • Market Analysis % Change YTD March 2022: Monetary volume in March 2022 was down -17% from March 2021. Transactions were down 37% from March 2021. YTD 2022, $ volume is pacing 3% down from YTD 2021, and transactions are 31% down from YTD 2021.

  • Residential Cost Analysis: Residential volume in March had 127 transactions with $165,395,077 gross volume. There were 56 properties that sold for $1M and above in March. There were 43 Single Family, 84 Multi-Family and 11 Vacant Land transactions in March 2022. 

  • Average Price History by Type- YTD 2022: Average price for residential Single Family: $2,288,386, Multi- Family: $814,440 and Vacant Land: $664,121.
    Comparative Historical Cost Analysis Comparison 2022-2021-2020: YTD 2022, there were 310 residential transactions and $417,558,430 gross $ volume with 145 properties selling for over $1M. YTD 2021, there were 441 transactions with $455,716,217 gross $ volume with 130 properties selling for over $1M. YTD 2020, 309 transactions with $265,464,100 gross $ volume with 87 properties selling for over $1M.

  • Top Lender Analysis March 2022: There were 448 loans in March, 92 loans were related to sales, there were 180 REFI's and 176 loans were timeshare related. 44% (one of the highest cash months on record) of the real estate closings were cash transactions. 

  • Foreclosure 2022 Update: There were 2 foreclosures in March 2022, no bank sales.

  • New Unit Sales were up (Clearwater Lofts in Keystone) 23, compared to 11 in February.

  • Purchaser Profile Abstract: There were 61 upper end sales in March 2022. Our buyers for real estate transactions for March 2022: Local buyers at 21%, with the

    Front Range demographic at 45% and 33% are out of state buyers with 0% International. There is also a graph included showing demographic trends through 2013 on page 19.

Please note that Land Title data comes from actual recorded transactions at the County Clerk and Recorder’s Office for that particular month. The information is not directly related to MLS data. The data is an unofficial tabulation of Summit County Records that are believed to be reasonably accurate. If you choose to utilize this marketing information in any publications or websites, please make sure you are quoting Land Title as your source. You are welcome to utilize this link within your own websites.

Thank you for your continued loyalty to Land Title.

 

Please reach out with any questions.

 

Brooke Roberts

Posted in Market Updates
May 5, 2022

Colorado Hard Money Lenders Names Mountain Resort Towns One of the Best Colorado Real Estate Investments

ColoradoHardMoney.com by Fairview Commercial Lending recently named Mountain Resort Communities one of the top real estate investments.  A central theme is the amount of cash buyers seeking a hedge for inflation. Summit County's large percentage of cash buyers make our market less sensitive to interest rate hikes. 

 

"Mountain towns: Although, the price points in the various resort communities for single family are very high they will not be impacted the same as Denver. In many ski towns 60-75% of the homes are bought in cash so these buyers are not directly rate sensitive.  Furthermore, there will be a desire to buy into the various ski towns as a hedge against inflation as other assets lose substantial value (Stocks and Bonds have both lost value this year).  Furthermore, build costs will make it prohibitive to materially increase supply." 

 

Take a look at their full blog post here for information on what they see as the best and worst real estate investments in Colorado.

Posted in Market Updates
April 7, 2022

Summit County Ski Resorts 2022 Closing Day

 

The 2022 ski season is beginning to wind down here in Summit County. There are less people wandering Frisco Main Street but there's still over 2 weeks left of great spring skiing and snowboarding. It's my personal favorite time of year for bump skiing. 

Here are the closing dates for our local resorts and don't forget backcountry skiing goes year round! 

• Arapahoe Basin: mid-June

• Breckenridge: May 30

• Cooper: April 17

• Copper Mountain: April 24

• Granby: April 10

• Keystone: April 17

• Loveland: May 8

• Steamboat: April 10

• Vail: May 1

• Winter Park: sometime in May

As of today, April 7th, 2022. I have a few free Loveland Ski area tickets to give away. Give me a call at 303-907-9129 and if I still have them they are all yours. 

 

April 5, 2022

February 2022 Market Analysis-Courtesy of Land Title

To Our Summit County Customers and Community,


Please note that you will see new additions within the monthly report this year: 
One key change is that there is a cumulative total bar for 2022 in all the resort counties on page 2. For example, the  February report will show the gross volume for January in all resort communities, then each month that number will be updated with the last full month so there is a cumulative running total. Also, on page 21 there is a helpful breakdown on Deed Restricted unit sales.

 

Here are highlights:

  • Market Analysis by Area for February 2022: There were a total of 107 transactions and $120,161,549 in monetary volume. The average transaction price for all 18 reported areas, plus Deed Restricted transactions, was $1,205,520, average residential price was $1,312,406 and average residential PSF was $749.
  • Market Analysis by Area 2022 (2 Months) YTD:  There are a total of 231 transactions with $286,419,970 monetary volume. the average transaction price is $1,305,404, the average residential price is $1,377,942 and the average residential PPSF is $746.
  • Market Snapshot for FULL Years 2022 vs 2021:  Average Indicators for $: Single Family +36, Multi- Family +7% and Vacant Land +27%. Median Indicators for Single Family +36%, Multi- Family +6% and Vacant Land +17%.
  • Market Analysis % Change YTD February 2022:  Monetary volume in February 2022 was down -10% from February 2021. Transactions were down 29% from February 2021.  YTD 2022, $ volume is pacing 9% up from YTD 2021, and transactions are 26% down from YTD 2021.
  • Residential Cost Analysis:  Residential volume in February had 81 transactions with $106,304,854 gross volume. There were 39 properties that sold for $1M and above in February.  There were 31 Single Family, 50 Multi-Family and 10 Vacant Land transactions in February 2022. 
  • Average Price History by Type- 2022: Average price for residential Single Family: $2,330,301 Multi- Family: $801,514 and Vacant Land: $641,265
  • Comparative Historical Cost Analysis Comparison 2022-2021-2020: YTD 2022, there were 183 residential transactions and $252,163,353 gross $ volume with 89 properties selling for over $1M. YTD 2021, there were 245 transactions with $261,665,817 gross $ volume with 68 properties selling for over $1M. YTD 2020, 209 transactions with $175,227,700 gross $ volume with 58 properties selling for over $1M.
  • Top Lender Analysis February 2022: There were 365 loans in February, 77 loans were related to sales, there were 174 REFI's and 114 loans were timeshare related. 28% of the real estate closings were cash transactions. 
  • Foreclosure 2022 Update: There were 2 Foreclosures in February 2022 compared to 1 last February 2021.
  • Purchaser Profile Abstract:  There were 40 upper end sales in February 2022. Our buyers for real estate transactions for February 2022: Local buyers at 28%, with the Front Range demographic at 46% and 26% were out of state buyers with 0% International. There is also a graph included showing demographic trends through 2013 on page 19.

Please note that Land Title data comes from actual recorded transactions at the County Clerk and Recorder’s Office for that particular month. The information is not directly related to MLS data. The data is an unofficial tabulation of Summit County Records that are believed to be reasonably accurate. If you choose to utilize this marketing information in any publications or websites, please make sure you are quoting Land Title as your source. You are welcome to utilize this link within your own websites.

 

           Click here for the February 2022 Market Analysis         

Posted in Market Updates
March 10, 2022

Ukraine impact on Colorado ski real estate & What will Cause Colorado ski real estate prices to fall

From our friends at Fairview Lending. All opinions are that of the author. 

 

Ukraine impact on Colorado ski real estate

What a few weeks it has been.  The stock markets have been up, then down.  Interest rates have also spiked only to fall shortly thereafter.  I’ve been asked by several realtors in various ski towns, what is the impact of Ukraine and real estate prices in Colorado.  Will there be a surge in prices as buyers search for “safe places” and safe assets like we saw during COVID?

What has happened economically since the invasion of Ukraine?

  1. Fed on track for rate increases: the federal reserve has confirmed that rate increases are on track and they might need to have larger increases in subsequent meetings as inflation remains stubbornly high
  2. 10 year treasury declined / mortgage rates declined: It is interesting that the federal reserve is clear that they are raising rates, but at the same time interest rates are falling. Remember the fed only controls the short term markets and not long term treasuries, which mortgages are pegged off.  Treasuries are “set” by market forces, in this case, there is a huge flight to safe assets like US treasuries during times of war and uncertainty.  As more people buy treasuries their prices go up, and in turn yields (long term rates) go down.  This creates a whole new problem for the federal reserve and could force them to increase rates even more.
  3. Stock market has declined substantially: As mortgage rates went down due to a flight to safer assets, the stock market has also gone down substantially as investors are nervous about riskier assets.  As stocks go down, wealth decreases which at some point decreases consumer confidence.

Will there be a flight to “safety” in Colorado ski towns?

With everything going on since the Ukraine invasion, it makes me wonder if we will see another Covid type repeat in Colorado ski towns where there is an insatiable demand.  During Covid, there was a huge “flight to safety” as people wanted to be in smaller, safer markets.  This led to huge price jumps in every ski market in Colorado with some topping 50% increases year over year.

With the war in Ukraine continuing, will Colorado ski towns see the same response in real estate to the current crisis?  I think the factors today are a bit different, I don’t think there is the same perception of personal “safety” from the crisis in Ukraine but there is now a big push out of risky assets into safer assets which fits with Colorado ski real estate.

Will there be an increase or a decrease in Colorado ski real estate prices?

Although we will not see another huge increase in real estate prices in the mountains like the Covid bump, it will remain desirable as buyers look for safe places to park assets as opposed to the stock market.  This will keep Mountain real estate a desirable asset to own which will keep prices high albeit the appreciation rates will be slower than the past 3 years.

Summary

 

I don’t think that the Ukraine invasion is market moving unto itself for Colorado ski real estate, but the invasion does put further pressure on other assets which will drive high net worth individuals to diversify their portfolio into safer assets.  From a real estate perspective, mountain real estate will continue to be a “haven” for investors looking to hedge against downside risk.  Although I don’t think we will see the same appreciation we saw during Covid, the mountain communities look to stay at their highs with little respite in sight for buyers as prices look to increase a bit further.

 

What will cause Colorado ski real estate prices to fall

If you’ve been reading the news, it seems to be everywhere, complaints against vail resorts are plastered all over the media.  With Vail the largest owner of resorts in Colorado and the United States will this derail the real estate party in ski towns or is there something bigger lurking that will radically change the real estate trajectory.  Will we see a 2007 repeat in Colorado ski real estate?

Complaints about Vail resorts impact on ski real estate

I recently read a Denver post article about Vail resorts and the diminished guest experience.  It gave a scathing review of Vail resorts.  On top of that I have written prior that Vails stock is taking a beating as a result of their lackluster execution of the ski season this year.

  1. Epic pass sales are up 76% vs. the 2019/2020 ski season, meaning the slopes would likely be more crowded to start with regardless of any labor issues.
  2. With resort living becoming increasingly more expensing, MTN’s wages are allegedly not keeping up in their local markets
  3. A pandemic-triggered escalation of real estate prices has reduced the number of homes available to local workers for rental
  4. H2-B and J-1 international work visas, which ski resorts have historically used to fill employment gaps, are in especially short supply leading to continued labor issues.

It doesn’t take a rocket scientist to figure out what was going to happen this season.  Vail dropped the price of their passes by 20% to sell more and it worked.  They sold 76% more passes but unfortunately they did not add any new capacity.  This has led to a “diminished guest experience”.  How could any rational person not see that this would happen?

Unfortunately part of the issues are a result of Vails own making, but the overwhelming majority is well outside of their control.  For example in Breckenridge house prices have increased almost 40% in one year.  This has priced would be renter out as houses get sold.  Furthermore, the demand to visit/live in the mountain towns has skyrocketed creating even more demand for workers with less housing.  Unfortunately I don’ see a great solution to the issues facing Vail.

On a positive note, Vail’s performance or lack thereof will have no impact on real estate prices in the various resort communities.   This will definitely not be the impetus for any real estate pull back.

Will rising interest rates impact purchases in Colorado ski towns?

There is no doubt interest rates are rising on treasuries and in turn mortgage rates.  The federal reserve has telegraphed a more aggressive rate stance which will put further upward pressure on mortgage rates.  How will the increasing rates impact Colorado ski real estate?  Long and short, interest rates should have a limited impact due to the number of cash purchases.  In most major ski resorts in Colorado the number of cash purchases are between around 40% and 70%. This is a huge percentage of purchases that are not interest rate sensitive as they have no mortgage.  Here is a past article on this topic: Best Colorado ski town investments.  With such a large percentage of properties being bought with cash, a move upward in rates is unlikely to be the catalyst for a slowdown in ski real estate.

What is the real risk to ski real estate?

If mortgage rates and the performance of the largest ski hill operator are not going to slow down ski real estate, what will?  With appreciation averaging north of 25% per annum throughout the ski towns with some as high as 40%, the pace of increases is unsustainable.

Resort real estate is highly correlated to stock market performance. With the huge quantity of cash transactions, much of these funds were from gains on equities.  Furthermore, the demographics of various ski towns throughout Colorado are heavily invested in the stock market due to their net worth.  As the stock market is now beginning to correct, ski real estate will invariably slow.

Will there be a correction in ski real estate like the stock market?

With a high correlation between the stock market and ski real estate, will there also be a correction in ski real estate.  As of writing this the Nasdaq is off almost 15% for the year with the S&P down around 10%.  With a correction underway, what happens to real estate?

Fortunately, although there is a correlation between the stock market and ski real estate it is not a one for one correlation.  For example a 20% drop in the market, might lead to a flattening or possibly a loss of 2-5% in ski real estate.  Remember even if real estate values flatten this is after 30% gains last year in many markets so it is important to keep it in perspective.

Summary

 

Long and short, I don’t see a fire-sale coming with values plunging in ski real estate as the market corrects, but the market will flatten and there is a risk of a small give back in appreciation depending on how severe the correction is.  Fortunately there is zero excess inventory in the various resort towns and build prices are extremely high coupled with so many cash purchases, the downside risk in ski real estate is radically different than 2007.

Posted in Market Updates
Dec. 30, 2021

December 2021 Market Update-Courtesy of Land Title

To Our Summit County Customers and Community,

Please note that Land Title data comes from actual recorded transactions at the County Clerk and Recorder’s Office for that particular month. The information is not directly related to MLS data. The data is an unofficial tabulation of Summit County Records that are believed to be reasonably accurate. If you choose to utilize this marketing information in any publications or websites, please make sure you are quoting Land Title as your source. You are welcome to utilize this link within your own websites.

PAGE8SUMMITNOVEMBER2021

 

  • Market Analysis by Area for November 2021: There were a total of 238 transactions and $286,148,104 in monetary volume. The average transaction price for all 18 reported areas, plus Deed Restricted transactions, was $1,167,089, average residential price was $1,248,038 and average residential PSF was $747.

  • Market Analysis by Area YTD 2021 (11 Months): There were a total of 2,685 transactions totaling $2,847,896,769 in monetary volume. Average transaction price was $1,084,960, average residential price was $1,113,676 and average residential PPF was $675.

  • Market Snapshot for FULL Years 2021 vs 2020:  Average Indicators for $: Single Family +24%, Multi- Family +23% and Vacant Land +28%. Median Indicators for Single Family +21%, Multi- Family +21% and Vacant Land +36%.

  • Market Analysis % Change YTD November 2021: Monetary volume in November 2021 was down 25% from November 2020. Transactions were down 40% from November 2020.  YTD 2021, $ volume is pacing 36% up and transactions are up 7% from YTD 2020. 

  • Residential Cost Analysis:  Residential volume in November had 194 transactions with $242,119,336 gross volume. There were 89 properties that sold for $1M and above in November.  There were 84 Single Family, 110 Multi-Family and 12 Vacant Land transactions. 

  • Average Price History by Type-YTD 2021: Average price for residential Single Family: $1,720,419, Multi- Family: $743,429 and Vacant Land: $473,558.

  • Comparative Historical Cost Analysis Comparison 2021-2020-2019: YTD 2021, there were 2206 residential transactions and $2,456,768,244 gross $ volume with 817 properties selling for over $1M. In 2020, there were 2054 transactions with $1,858,415,856 gross $ volume with 589 properties selling for over $1M. In 2019, 1741 transactions with $1,426,370,906 gross $ volume with 402 properties selling for over $1M.

  • Top Lender Analysis November 2021: There were 502 loans in November, 177 loans were related to sales, there were 218 REFI's and 107 loans were timeshare related. 26% of the real estate closings were cash transactions. 

  • Market Highlights:  Please see page 11 of the Market Analysis- Note the higher priced sale in November 2021 in Breckenridge (Four O'Clock Sub) at $5,750,000. The top priced PSF was in Breckenridge (One Ski Hill Place) at $1,742. 

  • Purchaser Profile Abstract:  There were 98 upper end sales in November 2021 compared to 119 in October. Our buyers for real estate transactions for November 2021: Local buyers at 27%, with the Front Range demographic at 42% and 31% are out of state buyers with 0% International. There is also a graph included showing demographic trends through 2013 on page 17.

View Full Report Here

Posted in Market Updates
Dec. 22, 2021

New Summit County Rental Regulations Explained

We finally have some clarity on the county's path for new rules surrounding short-term rentals. Thank goodness Summit County officials took a more reasonable approach than the Town of Breckenridge, who decided to effectively ban new STR's in all but a select few condominium buildings.  

The county's new rules are only applicable for un-incorporated Summit County. These rules apply to areas such as Wildernest, Summit Cove, Dillon Valley, Peak 7, and more. If you own property or are looking for property within any of the town limits these rules are NOT applicable. Other Summit County Towns such as Frisco and Dillon will likely be making changes to their own rental rules, so make sure to check my blog often for updates on that. 

 

Why the changes? Summit County has always been and will always be a resort destination. Second homes will always exist in Summit County. However, with the rising popularity of AirBNB and VRBO, many full time residents feel they are being priced out of living in the area. There are increasingly fewer long-term leases available to locals. Without a local workforce, businesses can't function or cater to our visitors. Personally, I believe all the above to be true but I'm not comfortable restricting owners property rights and I think there are better ways to solve the locals housing problem. 

Relatively, the new rules are reasonable. The county officials had to do something or else the radicals would have done...well, something radical. Below is a brief summary of the new rules. For the full ordinance click here.

The majority of second home owners will be able to rent their property a maximum of 135 nights per year. There is no restriction on what nights you can rent, so an owner could maximize profit by only renting during the highest revenue nights per year such as Christmas, New Years, and Fourth of July.

If your second home is in a resort overlay zone such as Keystone or Copper Mountain, there is no cap on nights.

Locals will be able to rent their primary home a maximum of 60 nights per year for a reduced license fee. 

If your property meets a strict set of criteria and goes thru a review process, you could obtain a Type III rental license allowing you additional occupancy or unlimited rental nights per year. Some of the guidelines for a Type III license are below. You can read all the guidelines on page 23 here

  • For Single Family Homes
    • A minimum distance of 100 feet from occupied areas (including hot tub or fire pit) of your property to the neighboring lots
    • OR the existence of an existence of an Accessory Dwelling Unit (ADU). An ADU is a great option if you have the space, this could be an apartment on top of a detached garage which you long-term rent to a local. This give you stable income and should qualify the primary home for a Type III license
  • For Multi-Family or Condominium Complexes
    • Only available in large condominium complexes with over 100 units. 
    • Significant on-site amenities as evidenced by at least 3 of the following: pool, hot tub, sauna, game room, tennis / pickle ball courts, or other significant amenities as approved by the Review Authority
    • Direct, private shuttle to a ski area or public transit within 100 feet of the property

 

If you'd like to find a property that would allow for a specific license type please reach out to me at TZimmerman@CBMP.com or call me at 303-907-9129. I have a list of all exempt buildings in Breckenridge or I can focus on properties that would be eligible for a Type III license. 

Posted in Happenings