Within the last 6 months 12 homes in the Basalt area have sold with a price per sq ft between $ 130 - $ 780. Discounting the one off on Riverside for $780 the per square foot average is $275.
101 Stackyard is a 6 bedroom 12 bath short sale that sold recently for $ 130.37 per sq ft in Basalt
Most of these sales were in Basalt proper but this analysis includes the short sale 3 miles up the frying pan on Stackyard. The issue here is days on market. If one takes the perspective of a bank or corporate seller 120 days on market is a long hold time.
Several of these were short sales, REO (bank owned) auctions or otherwise motivated sellers, and it is my belief that there will be more motivated sellers in the Basalt area in the future. Stackyard was on the market for over 600 days. Other distress sales of note particularly include local foreclosure and REO expert Kim McKinley’s sale on two rivers road for $570,000, this was a 2400 Sq ft 3 bedrooms, 3 baths on 6 acres with a 4 car garage that sold to the previous owner for $ 950,000.
Active comps range between 325 and 1000 per sqft, indicating that most sellers in the Basalt market are wildly optimistic in their pricing expectations. Kim McKinley states “We have several foreclosures in Basalt coming to market on within the next 60 to 120 days, the process is lengthy however there will be several on the market by this summer. A new foreclosure coming to market in Emma shortly could be priced to really open some eyes”.
With a target hold time of 90 to 120 days on market sold price per square foot on these foreclosures is likely to negatively impact the Basalt Real Estate Market.
A big factor for the Basalt and Carbondale markets is the challenging nature of financing particularly with jumbo loans. With the universe of borrowers shrinking due to tightening guidelines and the dearth of availability of loans over $ 417,000 things don’t look good for either Basalt or Carbondale. \
It is my prediction that both markets will gradually begin to revolve around what borrowers are required to put down 20% - plus $ 417,000, so I see Basalt, Missouri Heights and Carbondale revolving around the $450,000 to $ 750,000 unless it is an exceptional property or acreage etc.
Markets that will be particularly hard hit (in order of damage) include Aspen Equestrian Estates, Cerise Ranch and Elk Run. There is a recent article in the Wall Street Journal that states virtually anyone who bought between 2004 and 2008 will be in a negative equity situation and I would agree. The bright side is for those with cash or those who could not afford our market previously have an opportunity that may just be a once in a lifetime one!
Drew Kitchell can be reached at 970-379-7777 / ResortTown @ Gmail.com and his blog is at http://ResortTownBlog.com