Bachelor Gulch Report

Slight Uptick in Activity in the Bachelor Gulch Real Estate Market

Welcome to your September Bachelor
Gulch Market Update. Are we seeing
signs of a positive trend in BG real estates
sales?
If I squint really hard at the graph to the
right, I see activity picking up slightly. We
had no sales in BG in the first quarter this
year. Since April 1, we’ve had 8 sales with
3 more properties under contract.
Assuming the 3 properties close, we will
have 11 sales in 2010, 1 more than we had in
2009.
I’d like to believe we will have at least 3-5
more sales before the end of the year. If

that happens, we will definitely end the

year on a high note, after a miserable start.
Why do sales continue to be so slow in BG?
On the reverse I show the difference be-
tween list price and sales price. Sellers are
simply not reducing their list prices in re-
sponse to the slow market.
The graph to the left charts the difference
between final list price and sales price. If I
compare sales price to original sales price,
the discount would be over 20%. Clearly,
significant discounting is required to make
a sale. We need to see list prices come
down further before activity will pick up.
 Inventory Continues to be a Concern Across the Valley
We are seeing ac-
tivity picking up in
the overall market
but inventory re-
mains too high. The
graphs on this page
show inventory lev-
els in both the over-
all market and the
Bachelor Gulch
market.
Buyers have too
many choices which
results in a lack of
urgency. Their per-
ception seems to be
“why buy now when

the huge inventory

will force further
price reductions?”
This sentiment may
be true in the lar-
ger market but as
you can see, the
inventory in
Bachelor Gulch
has not exploded
like the overall
market. So Bache-
lor Gulch buyers
don’t have as many
choices as those
looking to purchase
on the Valley floor. You would think this would be good news for Bachelor Gulch sellers. So why
aren’t we seeing more sales? I think we still need to see list prices come down. In BG, the average list
price is $1,050/SF. The average sales price is $806/SF. The gap is still too wide. In Beaver Creek,
the average list price is $860/SF, the average sales price is $811/SF and sales are up.
I also send this newsletter out by email and many folks have
opted to go that way. Let’s save a tree and all convert to email.
Send me a note at Terry@TNolanProperties.com and I'll add
you to my e-mail list. If you know of anyone considering a real
estate transaction, I would appreciate your referral. All refer-
rals receive my immediate attention.
Best wishes to you and your family. Take care.