Eagle County’s Property Values – Going Nowhere

This report is intended as a “thinking persons guide” to understanding current (May 2014) Market forces – that affect your Property Value…

It is important to consider how all these individual Market Forces come into play when evaluating Real Estate values and trends in Eagle County, Colorado today.

1 – Appreciation in the Stock Market (overall) has greatly outpaced Real Estate appreciation in Eagle County – when you consider the last 12-15 months.  Why invest in Resort Real Estate if you get a better return elsewhere?

2 –  Eagle County Resident Property owners (as in Pitken County) are paying the HIGHEST Health Insurance costs in our Nation.  Now add in the “resort premium” we all pay for for local gasoline and inflated grocery prices…then ask…can my family afford a bigger Mortgage?  Vail Resorts (this year) dropped Health Insurance coverage for their part time employees…(Click Here)

3 –  Eagle County’s Taxes.  A savvy Resort Real Estate investor would look at PropertyEmpty-Wallet Tax trends for at least the last 3-5 years…with an eye to the future.

What has Eagle County has experienced?  Where our Public School District was unsuccessful in getting voters to vote for an additional permanent Property Tax increase…the Eagle River Fire Protection District was successful in getting their Tax increase through (2012)…(Click Here)  Mid-Valley Property owners “take the hit”.  Insiders expect our Public School District – to be back (November 2014) with another Ballot Tax request…read: another run at your property’s value..

Metro District “mania”- The so called “Metro Districts” have been traditionally used by Eagle County Developers to attach to Property/Home owners long term (usually Bond debt) to pay for the infrastructure improvements for a new Development…example…Roads, Water/Sewer, Natural Gas, Cable, Phone…you name it.  That additional residential (30 year bond?) debt on top of the Property Owners mortgage.

4 –  It’s “my agenda but you have to pay more” syndrome!  The classic (and continuing) example – “everybody in Eagle County has to pay more to subsidize the Airlines to bring more tourist Flights into Eagle County!”  From a strictly “cost accounting” perspective there is ZERO evidence that, for all Property Owners, this helps anyone other than the Airlines and the local non-profit groups – promoting this (special interest) agenda.

5 – Nationally the economic picture is scary.  When you look at the ratio of the number of new Private Sector jobs being created vs. folks becoming more dependent on the Federal Government (food stamps, indigent healthcare costs)…it’s not hard understand how the Nations debt (has ballooned under Obama in six years) to a very frightening $17 Trillion.

This is not particularly uplifting news when you think about it – is it?

So?  So, the ECT will leave you with some “happy news” for this coming week (May 19th –23rd 2014).  The news is coming from the Town of Gypsum and their City Council.  It will have a positive economic effect for all Eagle County folks who shop at Gypsum’s Costco and elsewhere in Gypsum.

OK – the ECT folks “wont steal the thunder” from their City Council – reporting their news (yet) – Stand by.  PS  Happy Mothers Day 2014

-CM

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