Vacant Land Market Update
It’s a great time to purchase vacant land. Although we are seeing some positive activity in vacant land this year we aren’t experiencing the same flurry of activity and reduction in inventory that we are seeing for homes, townhomes and condos.
A quick look at the stats for vacant land in the Winter Park area, (this area as categorized by the Grand County MLS starts at Winter Park Resort and ends at the top of Red Dirt Hill in Tabernash) reveals that there are 319 active vacant lots listed, which is actually down 1% from last year. Last year there were 44 vacant lots sold vs. 49 this year…a slight increase of 11%. Sold volume is up this year over last year by 63%, $8,953,888 this year vs $5,479,400 last year. Average sales price this year is up 46% $182,732 this year vs. $124,532 last year. Percent of list to sale this year is at 86% vs 85% last year.
Of the 49 lots that sold in the past year, 25 of them closed under $100K with an average sales price of $65,456. 19 sold in the price range between $101k and $200k with an average sales price of $134,195. 4 sold in in the price range of $201K to $300K with an average price of $268,188. The only lot to sell over $300K, in the Rendezvous subdivision, closed for $560K.
So what do these numbers mean? We are sitting on a large amount of inventory. Based on the number of lots sold and the amount of active listings, it will take about 6 years to sell through the inventory. The bulk of the activity is happening under $200K with the highest percentage of sales under $100K.
If you are hoping to sell your lot in the current market it is all about pricing. Since there is a surplus of inventory the buyers are looking for good deals and they are willing to wait. However, the vacant land market continues to be a mystery. You just never know when a vacant lot will sell. So even with the excess inventory, if you are hoping to sell property, keep it listed.
If you are looking to buy vacant land there are some great opportunities. Some things to keep in mind, carrying costs are higher for vacant land than a home or condo because the property tax is higher. In the state of Colorado vacant land is taxed at 28% of assessed value vs. single and multifamily homes that are taxed just under 10% of assessed value. It’s a good idea to get educated on the different subdivisions because many have architectural building requirements which can affect building costs. It is expensive to build in mountain communities. For “stick built construction”, most contractors up here are starting their quotes around $225 per foot to build. The sky is the limit from there. The cost of raw materials is high, especially with all the construction happening in Colorado, and site prep can be expensive.
A Real Estate of Winter Park Realtor would be more than happy to share their expertise with you about embarking on a mountain home building project.