Stan's Market Report \ december 27, 2008
Dear friends,
Christmas has passed and soon will another year. Except for good health and a wonderful family, 2008 will be a year I will love forgetting. The stock market is part of it, but I think what bothers me most is the uncertainty we all face and the overall lack of consumer confidence. I remain optimistic moving into 2009.
Let me digress to the market report where I compared equal times of up to 12/26/08. I many respects, I was surprised at the strength of the market compared to the nightmares in other locations. For Mountain Homes-51 were sold in 08 for an average of $440,057 or $212 a foot; in 07 48 homes were sold with a price average of $502,008 or $232 a foot. Condos in 07 averaged $252.00 for 58 sold, and for 08 $242,000 for 40 sold. 17 lots were sold with an average of $128,088 in 07 and 15 in 08 averaging $119,000.
Valley lots from 07 to 08 declined in sales from 17 to 4 and price reduction from $141,000 to $126,250. Homes dropped from 25 in 07 with average prices of $498,228 to 14 in 08 with average prices of $445,143.
I will not attempt to correct the statistical flaws in the data, and I am not sure I could even do so in my statistical prime. But, overall, there are solid signs in the market and more stability than I thought before doing the report.
With interest rates declining, and if I wanted Wintergreen for my family, now is a good time to proceed with care and due diligence. In many respects, I see a stable market particularly in the lower sectors and some really good buying opportunities. There will still be some corrections as we move forward, but my belief is the worst is behind us.
The good news is as a company we are still the leader of the pack counting all sides. Building through our builders program is an excellent option, as is a review of available homes and home sites throughout the resort. Call me if I can help in any way-I may not give you the price you want but I will do my best to give you a fair, market price that is neither low nor inflated.
I am also pleased at the cost cutting in the resort which in the long run will return a solid balance sheet and get us to a position where we can concentrate on members and better customer service.
I want to wish all well for the New Year, and God Bless all.
- Stan
