|
We hope that you had a wonderful winter in Aspen this season. With mountain closings, and heading into Q2 2024, it’s a great time to reflect on the residential real estate market in Aspen and surrounding communities. Only one phrase comes to mind: “Continued rocket ship appreciation” in almost all asset classes. The narrative of the appreciation story in Aspen is that new/er construction continues to outperform condos and single-family dwellings that need updating. That is largely due to both the hassle factor and the sustained very high cost of labor and materials despite the Fed’s raising of rates. The cost to build a ground-up/new construction right now in Aspen is +- $1800-$2,000 a foot. Remodel costs are in the +-$1,000-$1,100 a foot range. Buyers in this market would far prefer to reward a developer or owner handsomely for the efforts of building a new home with highly stylized finishes vs. taking on that effort themselves. Thus, the continued escalation of average price per square foot pricing, despite higher rates. The net is that Aspen, in our professional opinion, consistently proves to be one of the two best residential markets in the United States for investment AND useful enjoyment. As always, feel free to reach out to us about any properties that you might be curious about in Aspen or surrounding markets. Happy Spring!
|
