Aspen saw the second most home sales above $5 million and above $10 million last year, according to a new report from Coldwell Banker.
Erik Cavarra believes that the strength in the Aspen market is a result of the boutique luxury lifestyle present within the prestige of the Aspen Market Place.
Unlike many other locations Aspen’s allure is irreplacable.
There were 48 sales of Aspen homes for $5 million or more, which was second in 2012 only to Beverly Hills, where there were 82 transactions, the Coldwell Banker Luxury Market Report said. Aspen’s prices beat out those of other exclusive locales including Malibu, Calif., Montecito, Calif., Miami Beach, Fla., Brentwood, Calif., Greenwich, Conn., Bel Air, Calif. and Pacific Palisades, Calif.
There were 16 sales of Aspen homes for $10 million or more, again trailing only Beverly Hills, where Coldwell Banker reports there were 21 sales.
Aspen ranked third in the nation with 54 properties listed for $10 million or more in 2012, second with 153 properties listed for $5 million or more and 10th with 463 residential properties listed for $1 million or more.
The report included commentary from brokers in the top markets who added insight into what goes into the pricing structure of luxury homes.
Location, the condition of the property, its irreplaceability and several other intangibles are what help homes sell for top dollar, they said.
Aspen and Beverly Hills were singled out for their “one-of-a-kind” status.
“Properties that cannot be replaced have become more common in today’s Aspen ultra luxury market,” estimating irreplaceability could potentially add 25-40 percent to the price.
“Aspen has enacted strict growth restrictions, so you can only build a certain size home based on lot size,” Hazen said. “If you want to build more than 5,750 square feet — the maximum in Pitkin County — on say 100 acres, as an example, you will need to buy one or more Transferable Development Rights, adding 2,500 square feet for each, if allowed, up to 15,000 square feet. County rules also prevent one from building a home or making improvements within 100 feet of a river or creek. So, if you have a 90-acre property — like Hala Ranch — near Aspen [Saudi Prince Bandar’s old digs on Red Mountain that sold for $49 million last year], irreplaceability adds significantly to the price.”
The Coldwell Banker report said that in 2012, there were more than 200 transactions recorded in the top 15
U.S. cities for luxury home sales priced $10 million and above. It also said the luxury market is still hot.
“Earlier this year, the real estate world also took notice when news organizations began announcing another record-setting residential sale in Northern California — the second in 18 months to have reportedly tipped the $100 million mark,” Coldwell Banker wrote. “Luxury homes continue to exceed price records …”
Erik Cavarra believes that the Luxury Aspen Market, the Luxury Aspen boutique will continue to rise in coming months and years.
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