How to Buy a Home in Ski Country
BOSTON ( TheStreet) -- Good real estate deals are available in many U.S. ski areas these days because of the housing bust -- but things are beginning to go downhill for bargain hunters.
"Buyers had more of the upper hand for a long time in many markets, but that dynamic is starting to change," says Andrew Ernemann, president of the Aspen Board of Realtors in ski-friendly Aspen, Colo.
Ernemann, a broker/associate at realty firm B.J. Adams & Co. says Aspen home prices stabilized in 2012 after tumbling during the Great Recession.
"There are still values to be found, but the market is much more in balance," he says.
In the ski mecca of Park City, Utah, Jeff Spencer of Resorts West Real Estate reports that Realtors saw an uptick in sales beginning Jan. 1.
Market tracker Zillow.com estimates median Park City home prices rose 9.2% over the 12 months ended Jan. 31 to reach $433,700. Similarly, the typical Aspen home value gained 7.1% over the past year to hit $1.14 million, according to Zillow.
Still, price in both towns have managed only to hike partway back up the mountain toward their previous peaks.
Zillow (Z) estimates Aspen's average home prices are still off 34.5% from an early 2008 high of $1.74 million, while Park City values are 21.7% below their pre-recession peak of $554,200.
"People might have missed the bottom, but still we're close enough to it that this is a good time to jump in," Spencer says.
Here are some tips from Ernemann, Spencer and other experts on how to ice the best deal on the ski home of your dreams:
Know when to buy
Rich buyers historically propped up Aspen's housing prices even when the U.S. economy tanked, but even they couldn't protect the local market from the Great Recession and the recent housing bust.
"We learned in 2008 and 2009 that we're not immune to broad economic cycles," Ernemann says.
So buyers looking for the best prices in ski country should obviously hunt for deals when the housing market and broad economy are weak -- as they still somewhat are today.
The time of year when you look for ski properties can also make a big difference.
For instance, Ernemann says Aspen's bargain hunters often wait until just past the community's key February/March and July/August home-buying seasons and focus on properties that didn't sell.
Only pay for what you want
Prices on ski homes and condos tend to vary based on a wide range of location-related factors, from the quality of a property's mountain view to how close it is to ski trails, shops and restaurants.