Prestige Killington Real Estate Blog

Killington Resort Village(image courtesy of www.discoverkillington.com)

Prestige Real Estate firmly supports the development of the Killington Resort Village for several reasons:

New construction will raise real estate values and heighten interest in existing properties. Some people have argued that new residential construction (both homes and condominiums) will have a negative effect on Killington real estate.

We believe just the opposite. Having been involved in several new construction projects (Winterberry, The Lodges, Topridge Duplex Homes and The Vistas), we have seen how new construction has had a positive impact on the market value of nearby property.

New construction will bring new buyers to our region. Several buyers with whom we have worked were also considering new construction at other ski resorts. Had we not been able to present to them new projects in Killington we strongly believe they would have bought elsewhere. The new residential units to be built at the “Village” will excite buyers who have complained about the lack of “new product” in Killington.

The Village will bring back skiers who have left for other areas. Skier visits to Killington have declined over the decade from well over a million to just over 600,000. We need to attract new visitors and we need to convince people who have left Killington (for other resorts with a village) to return. Those who worry about traffic on the access road or overly crowded conditions on the mountain forget that we have the capacity for a significantly larger number of visitors than are currently here.

New commercial development will create an incentive for existing businesses to make improvements. New retail/commercial space is of concern to some but we believe that new competition is beneficial to everyone. More traffic coming to the area will benefit existing businesses as well as new businesses. In addition, existing businesses who have become complacent may be forced to update, benefiting all customers and ultimately themselves.

Construction of the Village will bring a substantial number of jobs to Killington. There will be many new jobs for people year round helping to stimulate business during traditionally slow periods.

On January 11, 2009, an informational meeting was held at the Sherburne Elementary school in Killington.  Members of the Killington Economic Development and Tourism Commission (EDTC) as well as Select Board members and other town volunteers presented the rationale for purchasing a 37 acre parcel of land located on Killington Road known as the “Fireside” property.  Well over 100 people attended the meeting to hear the presentation and voice their support, concerns, and/or questions.

The EDTC contends that the land is necessary to host events critical to building a vibrant four-season economy for the town.  The conceptual site plan presented at the meeting indicates proposed event areas, parking, trails, and access points.  The land is being offered to the town for $850K.  Costs have been estimated at approximately $700K for site development, not including bathroom facilities. 

The EDTC and Select Board are proposing that the town voters approve a Municipal Bond in the amount of $1.4 million to cover the outstanding costs.  According to the presenters at the meeting, revenues associated with the Options Tax will be sufficient to cover the cost of the bond spread over 20 years.  The vote will be held through Australian ballot at the Killington town meeting to be held the first Tuesday of March, 2010.  Absentee ballots will be available prior to the meeting.

Although attendees at the meeting were generally supportive of bringing new events and business to the town and many attendees seemed supportive of the land purchase, a number of the attendees requested that revenue projections be presented supporting the expenditures.  No revenue models or new visitor projections were developed or presented.

An additional meeting prior to the town meeting in March will be “warned” and held for further comment and discussion.  Watch for future announcements.

Only 35 condominiums sold in Killington in 2009 down almost 30% from 2008. At an average sale price of just over $207,000, a decrease of 17% since 2008, the total market revenue from Killington condo sales was $7 million, down more than 40% from the previous record low!

There was only one Killington land sale during the entire year compared with five in 2008.

The only bright spot in the whole picture is that the number of Killington home sales and the average sale price of Killington homes rose, but ever so slightly.  For all of the data on Killington real estate sales, read the latest Prestige Real Estate newsletter which provides a review of all of 2009.

For the first time since I’ve been selling real estate, I have to say that the adage of “location, location, location” is not the case these days!  It’s all about the PRICE. 

Buyers are looking at a broad range of properties that sometimes have very little in common.  In the past, a buyer would narrow their selection down to a single condo complex or would prioritize some amenity offered.  Today, buyers seem to be willing to “trade-off” location and amenity preference and  buy the property they feel is the greatest value for the price. 

Multiple simultaneous offers are not uncommon.  In most recent cases, the property that is purchased is based on which Seller is willing to take the greatest discounted price. 

For details on year-to-date Killington real estate sales and more information on trends in the Killington real estate market, see the latest Prestige Real Estate quarterly newsletter, currently posted on the Prestige Real Estate of Killington’s website.

In the first 12 days of August, three Killington condos have sold:

• a one-bedroom Pico condo listed for $129,000 sold for $115,000;
• a one-bedroom Fall Line condo listed for $152,900 sold for $149,000; and
• a three-bedroom Fall Line condo listed for $285,000 sold for $225,000.

In addition, during the same period, four Killington properties have gone under agreement:

• two two-bedroom Pico condos listed for $140,000 and $199,000;
• a three-bedroom Pico condo listed for $200,000; and
• two Killington single family homes listed for $199,500 and $475,000.

This activity marks a significant transition from “lookers” to “buyers.”  All indications are that this trend will continue into the fall.

Five properties sold in Killington, VT in July 2009.  Four of these real estate sales were for condos and one single family home.  Killington condo sales ranged in price from $130,000 to $165,000.  Of those sales, two were located in Sunrise Village, one at Whiffletree, and one at Fall Line.  One single family home sold in Killington on Roundabout Drive for $326,000.

Alhtough more properties sold in June (8 sales) than in July, there are six properties in Killington that are currently under agreement: five condos listed for $129,000 to $285,000, and one single family home listed for $724,000.

Continue to watch this blog for regular updates on Killington real estate sales activity.  To view properties currently for sale in Killington, visit www.prestigekillington.com.

There are only 119 condominiums on the market for sale in Killington, VT.  This is the lowest number of available units since October 2006.  There are 38 studio and one bedroom units ranging in price from $69,000 for a one bedroom Mountain Green condominium to $225,000 for a one bedroom/loft Trailcreek condominium.  There are 42 two bedroom units ranging in price from $79,000 for a two bedroom Mountain Green to $339,000 for a two bedroom Sunrise unit.  There 39 three bedroom units listed ranging in price from a three bedroom Mountain Green for $125,000 to $759,000 for a large town home at Topridge.

Appraisals have become one of the biggest obstacles to buying real estate.  While  appraisers were, in previous markets, under pressure to inflate values,  the pendulum has now swung to the other extreme.  For example, Prestige Real Estate recently sold a condominium for $390,000. The exact same style of unit, in the same complex, sold for $470,000 less than a year ago and there have been no other sales since. Despite this perfect “comparable” sale, the new appraisal came in at only $400,000!  If the buyer was not prepared to pay 30% down at closing, we doubt that financing would have been available due to that appraisal. 

Unfortunately appraisers receive a copy of the Purchase and Sale Agreement prior to conducting their appraisal and they are greatly influenced by the sale price listed on the contract.  Appraisers are also noting the small volume of sales to justify their conservative opinion of values. To make matters even worse, lenders are now hiring appraisers who have never been to Killington (some from out of State)  to perform these appraisals.  A good appraisal is in many cases now left to the luck of the draw!

Freddie Mac and Fannie Mae have come out with a new “Market Conditions Addendum to the Appraisal Report” (April 1, 2009). Once an appraisal is complete, it may need to be examined by “appraisal reviewers” who have the authority to call for a complete review of all condo documents and by-laws. Such a review leaves decision making powers to bureaucrats sitting in offices in other parts of the country who have no practical or real experience with Killington real estate market.   

Our National Association of Realtors is lobbying Fannie Mae and Freddie Mac to relax many of these new rules.  This will take time and we do not see resolution of this in the near future.  So even when buyers start to feel more comfortable about buying in Killington and we begin to write contracts, we are a long way from closing on a deal if the purchase is subject to financing.

There have been seven sales in Killington Vermont since January 1, 2009: 3 homes have sold; 3 condominiums have sold and 1 parcel of land has sold.  There are currently seven properties (1 Killington Home and six Killington Condominiums) under contract and scheduled to close in the near future.  There are 51 homes listed for sale, 125 condominiums on the market and 21 parcels of land listed for sale in Killington.

There have been six sales in Killington since January 1, 2009: 3 homes have sold; 2 condominiums have sold and 1 parcel of land has sold.  There are currently ten properties (five Killington Homes and five Killington Condominiums) under contract and scheduled to close in the near future.  There are 49 homes listed for sale, 131 condominiums on the market and 23 parcels of land listed for sale in Killington.