USA Today : Stock market woes hit Stowe, Vt., second-home market

[WWF-VT]

http://www.usatoday.com/travel/dest...2009-06-08-stowe-vermont-housing-market_N.htm

"Stowe has a second-home market that relies on executives from the financial services industry in New York and Boston. Because they've been hammered by the stock market collapse, vacation home sales have stalled."


Could be a similar story across VT ski areas

 

[thetrailboss]

Well, Stowe is in a class of its own...the real estate there is way overpriced.

 

[Geoff]

Could be a similar story across VT ski areas

The real estate market ground to a halt 18 months ago everywhere. It's not just Vermont. Just like in 1989, I don't think we've seen the worst of it yet. The unemployment rate is still rising. Banks are reluctant to foreclose on vacation home property that won't do well at auction.

In the last collapse with the S&L debacle, it took 3 to 3 1/2 years before the auctions started happening that reset valuations. I expect the same to happen this time around. In another 18 months, the auctions will start happening and the new, lower market price point will be established. Last time, the market was then flat for 3 or 4 years. I think we're in for a repeat at least in the vacation home market. The real value for a condo in ski country is when the prices drop so you can buy it 100% financed and have it generate enough income as a rental to cover all expenses. It's still a ways from that price point and that's where the auction prices are likely to be.

 

[St. Bear]

From the article:

Jack and Laura Lancaster are selling a private, hilltop estate on 150 acres with views of Stowe Valley and Mount Mansfield.

Price: $3.8 million
Bedrooms: 5
Bathrooms: 5
Size: 6,096 square feet
Features: Master suite with his and her bedrooms, bathrooms and studies, indoor pool with sauna and whirlpool, wine cellar, onebedroom guest suite with kitchen, three-car garage, tennis court, three-bedroom caretaker house.

I love the idea of his and her bedrooms, bathrooms, and studies. I'd never see my wife.

/I kid, I kid

 

[ski_resort_observer]

Like Geoff said this is not exactly ground breaking information. When I left Jackson, Wy there were over 800 realtors, now there are less than 300. Places in Florida, Nevada and CA prices have fallen from their lofty real estate prices of a couple of years ago so far it makes the Stowe real estate market look healthy. It's all a matter of perspective. All the resort towns have been hit hard by the real estate meltdown, especially the big destination resorts out west.

Since AIG is one of the companies at the center of the storm you'd think someone would have been aware that the timing of Stowe's 400m developement would be a problem but I guess the problem that was brewing with AIG's division of financial products was off the radar enough from their core business and they were caught with their pants down.

 

[billski]

Well, Stowe is in a class of its own...the real estate there is way overpriced.

And a corollary: The real estate owners are over paid. :evil:

 

[GrilledSteezeSandwich]

I ready somewhere recently that 2nd home values in Vermont are down like 20-30%..in this recession I know that there are so many homes on the market and very few buyers..if the trend continues..there could be some bargains out there...it doesn't concern me..if I ever had enough for a vacation home, I'd use the money for lots of steezy trips..

 

[GrilledSteezeSandwich]

And a corollary: The real estate owners are over paid. :evil:

The ones that still have jobs.,.

 

[billski]

The ones that still have jobs.,.

and the remainder are floating is so much bonus money it doesn't matter to them...

 

[GrilledSteezeSandwich]

and the remainder are floating is so much bonus money it doesn't matter to them...

only a small percentage of people got huge bonuses...home prices in Stowe are still way cheaper than alot of Rocky Mountain towns..A buddy of mine got a room at the new hotel for $249..if they can just knock another buck fiddy off that..I'll be staying in the lodge..

 

[billski]

only a small percentage of people got huge bonuses...home prices in Stowe are still way cheaper than alot of Rocky Mountain towns..A buddy of mine got a room at the new hotel for $249..if they can just knock another buck fiddy off that..I'll be staying in the lodge..

Sounds like you're splitting hairs between the top 5% income bracket and the top 4% who can afford mansions. 2M, 5M, 25M, heh, all the same to me....

 

[GrilledSteezeSandwich]

Sounds like you're splitting hairs between the top 5% income bracket and the top 4% who can afford mansions. 2M, 5M, 25M, heh, all the same to me....

I feel for those who were worth $100 million back in 2007 and are now only worth $30 million..cutting back from 2 ounces to 1 ounce of cavier per day has got to be rough as long as they don't have to shop at Target with the non-elite..