Killington Real Estate Blog

It is difficult to say anything positive about the real estate market in general these days and the Killington real estate market seems to be no exception.  There is bad news everywhere, whether you look at sales volume, prices, days on market, inventory levels, or even availability of financing.

The problem with trying to draw conclusions for the Killington real estate market is that there are far too few data points to make any general statements.  With only two single family homes sold in the first half of the year, it would be ridiculous to make general statements about pricing trends.  The same is true for the condominium market.  Only eight condos sold in the past three months and twenty condos sold since the first of the year.  The bright spot may be that three building lots sold compared to none during the same period last year. 

See Prestige Real Estate’s complete newsletter for the 2nd quarter of 2008 for the complete article and specific sales information for homes, condos and land.  For information on Killington VT properties for sale, visit the Prestige Real Estate website.

It seems that the pendulum has swung completely in the other direction.  None of us who are even just slightly tuned in to the news can avoid hearing about the “mortgage crisis” that many in the US are facing.  The truth of the matter, however, is that the “overlending” (i.e., lending money to people with “borderline” ability to pay) which created the problem initially wasn’t done in Killington.  In fact, there is only one foreclosure in the Killington market that I am currently aware of.  The “fix”, however, whereby lenders have tightened lending standards like a noose are being applied universally, including to the Killington market.

About a week ago, we were told that Fannie Mae and Freddie Mac would not finance a condominium purchase in Killington.  The problem initially seemed to focus on the properties being considered “investment” properties, not second homes.  Another issue seemed to center around requiring added protections for mortgagees and guarantors.  These safeguards involved making changes to condominium documents which is not an easy process.  Thirdly, there seems to be an issue financing a property that has extensive commercial activities such as restaurants and health clubs.  It seems that new “issues” seem to be identified daily.

There is a meeting of representatives of the Boards of many of the Killington condominium associations on Saturday, June 7th.  The difficulty in financing condominium purchases is a major topic for discussion on the meeting agenda.  Two attorneys, familiar with the Killington condominium documents, have been asked to review the new lending requirements and summarize recommendations for the attendees.  These recommendations will then be reviewed by the Association Boards which may, in turn, recommend amendments to the existing condominium documents.  I just hope that if these changes are made, new requirements don’t emerge, necessitating more changes. 

This all seems so unnecessary.  Had lenders used reasonable and judicious qualification standards to begin with, we would not be in this predicament.  In addition, these requirements are being applied across the board whether or not a local problem exists.  The “pendulum” has swung to the other extreme.  Let’s just hope that it doesn’t take long to reach a point of sanity and equilibrium!

What do you think?

Although property sales did not compare with the “boom times” of 2003 through 2005, overall Killington real estate sales volume was better than in the first quarters of 2006 and 2007.  Sales revenues of $4.5 million for the quarter were up 27% over the same period last year.

Condo Sales
Twelve condominiums sold during the first quarter of this year compared to nine each in the previous two years.  In almost all cases, prices decreased, but only by a small percentage.  Condominium inventory continues to rise with 150 condos on the market on March 31^st compared to 131 in 2007 and 116 in 2006.

Home Sales
One home sold in Killington during January through March 2008. This home was located at The Woods and sold for $375,000. Unlike last year, there are no homes under contract (4 were pending at the end of March 2007).  The home inventory is also rising.  Thirty three homes were listed at this time last year ranging in price from $275,000 to $2,300,000.  On March 31, 2008 there were 42 homes listed, ranging in price from $209,000 to $1,950,000, including eight multi-family homes.

Land Sales
One parcel of land sold this quarter, the same as last year.  This lot was a ski on/ski off parcel with a 6 bedroom permit located at Topridge and sold for $700,000.  There are 24 parcels for sale, almost twice the inventory of last year, ranging from a 1 acre lot listed for $60,000 to a 37.45 acre commercial listing for $2,950,000.   It should be noted that the septic rules changed in Vermont this past year, in some cases, making it easier for land to “perc”.  Because of this we anticipate seeing more land for sale in the spring of 2008 and land values should be going up.

A new high-speed detachable quad will replace the existing Skye Peak Quad operating out of Bear Mountain base.  This new lift will cut the riding time from 13 minutes to just under 5 minutes.  Additional on-mountain trail improvements and further investments in the snowmaking infrastructure will also be made.

SP Land has announced that the development of the “Village” is on hold.  The Town of Killington wants SP Land to present a new PUD (planned unit development) reflecting proposed changes to the Village project. SP Land requested an extension of the current PUD which the Town had previously approved in 2000 and 2004. ( The current PUD expires in September 2008).  The Town feels that SP Land’s changes are significant enough to warrant a new PUD for approval and, while not opposed to the Village, wants these changes articulated in the new PUD.  Had the Town simply agreed to the extension, SP Land would have gone forward with the State permit process (Act 250).   While there are other issues between them,  the conflict described above represents the most challenging sticking point between the Town of Killington and SP Land.

Home sales were down in Killington with ony 12 properties sold in 2007.  Although the average sale price was $521,000 up from  $391,000 in 2006, like Killington condominiums, the number of sales decreased, from 23 to 12. The lowest price paid for a home in Killington was $269,000 for a 2 bedroom home on Bart’s Hill Road.  The highest price paid was $1,275,000 for a newly built 4 bedroom home with over 5,000 square feet of living space.  There are currently 37 homes for sale in Killington with an average listing price of $659,000.  For the full story on 2007 Killington Real Estate in Review

2007 posted a new low for Killington condominium sales with only 51 sold.  The lowest priced sale was for a one bedroom/one bath Mountain Green Condominium for $75,000 and the  highest price was for a ski on/ski off duplex town home at Topridge for over $900,000.As of December 31, 2007 there were 127 condominiums for sale in Killington: 4 studio units; 42 one bedroom units; 41 two bedroom units; and 40 three bedroom units.  For the full story

Since our last formal update, at the end of the 3rd quarter of 2007, in Prestige Real Estate’s quarterly newsletter, 14 Killington condominiums, 3 Killington homes, and 1 parcel of Killington land have sold.  That is down fairly substantially in all three categories from the same period last year.  Killington condo sales year to date are down 18%, Killington house sales year to date are down 63% and land sales year to date are down from 15 parcels last year to just one this year.

I think this continued real estate market slide is attributable to:

1) National media continuously reporting that the real estate market is in serious trouble and has not seen the worst yet, causing potential buyers to hold off; and

2) Buyers exercising caution in light of new Killington Resort management.

One thing I do know is that foreign interest and investment in the Killington real estate market has increased in light of the decreased value of the US dollar.  The last three purchase & sale agreements that we have put together involve Brits buying Killington real estate.

All I’ve heard since Killington ski resort opened this year on November 16th is how good the skiing has been.  I finally let some friends talk me into getting out onto the mountain today.  Boy, is it good!  It would not be an exaggeration to say that the conditions were as good as they are in the middle of the winter. 

So, three cheers for the new mountain management.  I have been outspoken, to anyone who would listen, that we need to give the new team a chance.  It took American Skiing Company years to run the operation down as far as it went.  It’s going to take time and some tough business decisions to get it back to where it should, can, and will be.  The new team has my support.  A strong mountain operation can only help all of the other businesses in town, along with raising Killington real estate values.

So tell all your friends to try Killington again.  I think you will all be pleased with what you find.

Four condominiums have sold in Killington since our last update (11/6/07); all were two bedroom condominiums and sold for $95,000 to $227,000. Only one house has sold in Killington, a three bedroom two bath chalet listed for $289,000 and selling for $269,000.  There are 7 properties currently under contract and scheduled to close in the near future; five condominiums and two homes.  Prestige Real Estate of Killington is invovled in five of these 7 real estate transactions, three Killington condominiums and both Killington homes.