Seller's Market Dealt a Blow by Recent Economy Slump

Many thought the Roaring Fork Valley's real estate market bubble was unpoppable despite the looming economic conditions throughout the country.  However, this year's slow economy has created a slump in real estate transactions from Aspen to Parachute.  What was once well know as being a seller's market is now slowing leaning towards the favor of the buyers.  In recent years,  typical homes were not on the market long before they were snatched up by aggressive buyers.  August proved to produce the highest dollar volume in real estate transactions this year, however, it still fell 21% below August 2007.  Total transactions for the year are down 33% and sales were down 44%.

There is speculation that the more astute buyers are waiting until asking prices are lowered, but others in the mortgage and real estate industry see the market holding current value throughout the winter and into next summer. 

The staggering numbers have caused several industry companies to scale back their operations.  Both Mason Morse and Aspen Sotheby's Internationl Realty have close their Basalt offices, and architects throughout the valley have started to consolidate. 

Some feel that the luxury high end may not be as effected by the economic down turn as buyers in that bracket are a unique customer and often come from areas and countries that may not be exposed to the current financial woes.

Information and stats gathered from Aspen Daily News. 10/1/08 by David Frey