MARKET NOT GREAT IN CASTLE PINES VILLAGE
My “Anecdotal” Observation
I am currently representing a couple whose primary focus is on Castle Pines Village (CPV), a luxury gated and golf community to the south of metro Denver. Because of their schedule and need to narrow their search I previewed eight homes yesterday. Asking prices were from $800,000 to $1,200,000 Two of the homes were occupied, two were being “packed” and four were vacant. That is a reallly unusual ratio of essentially unoccupied homes and is testimony that the market is soft in this luxury segment.
What Did I Find Next?
They had enough interest in one of the homes and requested a preliminary evaluation so I searched for recent sales of similar homes. Of the six recent sales, one was “lender owned” and two were “short sales”. Days on market were 717, 606, 113, 208, 170 and 622. A full 50% of these transactions were of the “troubled” variety. Several of these had turned over twice over the past three years and we found a reduction in price of from 15% to 30%. Those figures are almost unheard of in a community like CPV.
Is There a Lesson or a Message?
I think so. It is that this economy is reaching both up and down the ladder and having an effect on higher income owners along with lower and middle income people. Because we don’t know all of the circumstances we can certainly not make any judgements, but with this kind of result there becomes a better understanding of why high LTV jumbo loans are so scarce and why lenders have so tightend their underwriting.
Why should I (You) Care?
If you have been considering CPV there are opportunities for buyers. While you may not realize as much from the sale of your, say, $400,000 home as would have been the case 12-15 months ago, the potential savings if you “buy up” will be significant.
You can contact me to discuss your individual situation at 303-721-1100, ext. 1 or russ@buyerbroker-denver.com