Though it’s a world-class ski area, Keystone Resort has been a bit of an anomaly in its appreciation of condominiums and townhomes. While other Summit County properties have seen steady rises since the 1990s, Keystone has experienced ebbs and flows since the mid 1990s.
Many people believe that the enormous addition of River Run Village flooded the market with high-priced luxury units that didn’t sell as quickly as developers had hoped. By 1999, the average price of the units had actually dropped by 13%, leaving early investors shaking their heads, though the number of units sold finally went up by 17%.
The addition of so many new high-end condominiums even affected sales and values of older condominiums. While the concept of fix-and-flip is usually a solid one in Summit County, in Keystone, it backfired on many investors, who found themselves competing with the newer units on the market. In the early 2000s, Keystone real estate sales continued to go up and down, from a 5% increase in 2001 to a 33% drop in 2002.
Keystone real estate seems to have evened out lately. The glut of properties on the market has decreased, reducing the amount of supply in comparison to demand. From 2005 to 2006, the average price only increased by 1%, but the volume sold rose by 24%.
From 2006 to 2007, the average price of Keystone Co real estate increased by about 35%, and the volume sold rose by 5.8%. And in 2007, Keystone had the highest average sales price of a single-family home, at $1,338,203, out of all of the towns in Summit County, including Breckenridge.
In general, investors are gaining more confidence in Keystone’s real estate market, as it’s still a world-class resort offering year-round activities. Moreover, the flood of new development seems to have reached an end, as Keystone, like everywhere else in Summit County, is running out of land that can be developed.Keystone real estate appreciation