What was once the hottest market segment is facing glut of inventory. “We have what is to most knowledgeable observers an oversupply of fractional interest units for a resort the size of Aspen/Snowmass,” wrote Randy Gold, a principal in Aspen Appraisal Group who has been a real estate appraiser in Aspen for more than 30 years.
ASPEN SNOWMASS REAL ESTATE — Despite a resurgence for fractional ownership projects this spring, a recent study sees a tough year ahead for what was once the hottest market segment in Aspen and Snowmass Village real estate.There were 20 sales of fractional interests in various projects in April for $10.25 million, according to Land Title Guarantee Co.’s monthly analysis of market activity. The dollar volume was up 91 percent from April 2009.But for the year to date, there have been 57 sales of fractional interests, a decrease of 56 percent, Land Title Guarantee Co. reported. The dollar volume through April was $28.9 million, a decrease of 77 percent from the same period in 2009.The lack of activity isn’t for lack of inventory. Aspen Appraisal Group did a recent analysis of all segments of the Aspen-Snowmass real estate market and found a “huge amount of unsold inventory” in fractional ownership condominiums, relative to other market segments.
By Scott Condon, May 31, 2010, The Aspen Times
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