Vail Valley Investing

Vail is pushing towards the 50th year anniversary. As such, physical appearances and infrastructure start to deteriorate and need to be updated to the current standard.

Vail has always prided itself on being a top international resort. To maintain this standard and continue to appeal to the high end consumer it is important to have new, modern and attractive buildings and amenities.

In dealing with high end resort properties, the mountain is what initially attracts the consumer, then the amenities must keep pace in order to sustain the continued interest.

Thus, the current renewal and redevelopment renaissance, known as Vail’s New Dawn.

At this time, the base area and Village of Vail are under going a $3 billion dollar renovation and improvements. Beaver Creek which is much newer and already has a very high appeal to the high end consumer is undergoing one half billion in projects at the entrance.

Now only are they in the process of some new condo/hotels, but also there is now a gondola from the new Four Seasons in Avon up to Beaver Creek Landing.

From 2004 through 2006, the annual rate of appreciation averaged 14.6%. During that time the average days on the market fell from a 15 year average of 270 days on the market to 160 days on the market.

Although the market is cooling a bit, we do not see it coming to an end. Currently the days on market since January 2007 is up to 290 days. In part this “stall” could be a reflection of the national “Real Estate” market news.

The following figures take the average sq. ft. price for the county during the years listed and compare it to the percentage of growth +/- for the years shown.


Year           Avg. Sq. Ft. $        Year Prior %

 1991              $165

 1992               $178                       8%

 1993               $202                      14%

 1994               $230                      14%

 1995               $244                       6%

 1996               $253                       4%

 1997               $294                      16%

 1998               $297                       1%

 1999               $297                       0%

 2000               $335                      13%

 2001               $348                       4%

 2002               $378                       8%

 2003               $388                       3%

 2004               $494                      27%

 2005               $637                      29%

 2006               $754                      18%

These numbers are averaged for Eagle County. Currently, the village Sq. Ft. price is from $1800 to $2700.

As an investor, one should look at their other portfolio properties and do a line by line comparison. Depending on your initial down payment, this will dictate if there will be

any cash flow from short term rental. The factor to really pay attention to is how have the previously owned properties value increased over the time of ownership?

The benefits to vacation home ownership are numerous, lifestyle options, portfolio diversification and investment returns to name a few.

The National Association of Realtors study of the most expensive resorts in the US, outpaced the average rates of appreciation by 2:1.

What will happen in the future? You have an incredible ski mountain, a massive refurbishing of the mountain base and town, a fabulous snow year, Vail’s # 1 ranking in many ski publications, Vail & Beaver Creek have positioned themselves to be here long into the future.

I am always available to help you with your questions and guide you through this process. Many of our resell properties have rental histories available for review. If you have never considered vacationing in the Vail Valley, this just might be the perfect opportunity. I look forward to helping you make an informed decision.
Madeline