explorebigsky.com
REAL ESTATE
Big Sky Weekly
Big Sky Real Estate Update: Reflections on 2011 and predictions for 2012 From the local experts at Sotheby’s International Realty, Jeff Helms, Tallie Jamison and Ryan Kulesza First and foremost, we want to welcome you back to Big Sky, the best place to enjoy the holiday season. Since your last visit, we’d like to bring you up to speed on our local real estate market. What follows is an overview of the last year’s activity in our entire region including the Meadow, Mountain, and Canyon areas, as well as the four resorts. There is a lot of data and doing the research on your own can be daunting, so we’ve done the work for you. We invite you to review the numbers in our data driven report on pages 30 and 31 or visit us next to the Hungry Moose for a personal overview.
A YEAR IN REVIEW
In 2011, we created a marketplace in which properties actually traded. That may sound insignificant, but in comparison to 2009 and 2010 where we saw a relatively inactive marketplace, we had difficulty determining values because there were so few sales. Thankfully, now, we can look at comparable data within distinct segments and discern true market value. Just over two hundred properties traded hands this year, for a total of $106,000,000 (excluding Yellowstone Club transactions). We hit an important milestone late this year: our inventory levels fell below 500, contracting by 38% since the highs of 2008, when we had over 750 listings in the entire Big Sky market. This absorption shows both confidence in the market and a correction in the balance of supply and demand. 75% of the transactions were under $500,000, leading buyers to seek value at price points over $500,000. We were encouraged to see many $1M+ sales in the fourth quarter.
BUYERS’ MARKET
The most important step a buyer can take towards making a purchase is to get an education on the finer points of their market segment. Well priced properties, foreclosures in particular, have seen
multiple offers within 48 hours and even sold over the listing price. Buyers need to know when to strike so they don’t miss a great opportunity. With the combination of decreased prices and very low vacancy rates in the long- and shortterm rental markets, investors have begun to allocate money to acquire income-producing properties. We expect 2012 to continue to be a buyer’s market, with high-end properties in particular.
DISTRESSED PROPERTIES
Short sales, foreclosures and bank-owned properties are still affecting our overall market. In 2011, 24% of solds were technically classified as distressed, while only 10% of our active listings are distressed. In other words, we have a high demand for distressed properties, but the supply has been diminished. Buyers continue to ask for a list of foreclosures; that list is shrinking. The opportunity to purchase top quality distressed real estate is now.
PREDICTIONS
We remain cautiously optimistic about the overall Big Sky market. Over the past year, we have watched Yellowstone Club stabilize, Moonlight Basin begin to emerge from bankruptcy, and Spanish Peaks Holdings II, LLC file for Chapter 7 bankruptcy with all services coming to halt. Through it all, Big Sky Resort seemed to make wise and prudent decisions in all facets of their operations. Resort areas rely heavily on real estate sales in order to sustain their business models. Thus, you can anticipate new product development and releases in the later half of 2012 in order to generate much needed revenue to sustain operations in both Yellowstone Club and Moonlight Basin. For example, we expect the release of the final phase of the Powder Ridge Cabins (4B), a ski-in ski-out condo development at Big Sky Resort.
We anticipate vacant land sales to increase in 2012 due to such low prices throughout Big Sky. Inventory levels in Moonlight Basin will continue to diminish into the first quarter of 2012, which will lead to an increase in value for many of the ski-in ski-out properties there. Yellowstone Club will continue to see absorption in their secondary market, which will eventually lead to new developer releases. They are launching built product that the consumer can purchase ‘turnkey’. Yellowstone Club will continue to be our glimmer of hope in the high-end luxury segment. As occurred in 1998 to 2001, when YC values improve, the rest of the market follows. We confidently predict that in 2012, absorption rates in Moonlight Basin, YC and Big Sky Resort will increase over 2011. We guarantee that Big Sky remains an incredible destination with quality of life unmatched by any other mountain resort community. Our advice to you is to begin tracking the data in order to stay in tune with market dynamics. Insider’s Edge The Big Sky real estate market can be difficult to navigate. It’s hard to predict true market values, so we rose to that challenge by developing a solution called the “Insider’s Edge.” On this portion of our website, we will simplify local news and real estate updates. Now more than ever, buyers and sellers need a knowledge-based resource to make informed real estate decisions. Jeff, Tallie and Ryan are an integral component of the leading real estate firm in Big Sky and are proud to live, work, and play here. See our Year End Review on pages 30 and 31 for an in-depth analysis of the entire Big Sky real estate market.
explorebigsky.com
December 16, 2011 29
Condos
121
59%
$0-$100,000
46
22%
$0-$100,000
$3,148,834
3%
Homes
55
27%
$100,001-$200,000
37
18%
$100,001-$200,000
$5,518,500
5%
Land
28
14%
$200,001-$300,000
26
13%
$200,001-$300,000
$6,506,339
6%
Commercial
2
1%
$300,001-$400,000
26
13%
$300,001-$400,000
$8,765,525
8%
$400,001-$500,000
15
7%
$400,001-$500,000
$6,512,300
6%
$500,001-$600,000
5
2%
$500,001-$600,000
$2,774,000
3%
$600,001-$1,000,000
26
13%
$600,001-$1,000,000
$20,087,999
19%
$1,000,001-$3,000,000
20
10%
$1,000,001-$3,000,000
$32,885,684
31%
$3,000,001-$5,000,000
4
2%
$3,000,001-$5,000,000
$14,945,000
14%
$5,000,000+
1
0%
$5,000,000+
$5,300,000
5%
Sold By Type With Condo values generally down as much as 60% from the highs of 2007 and long term vacancies staying below 3%, investor interest in this product type rose in 2011. Interest in vacant land continue to lag as replacement costs are still significantly higher than the cost of already built homes and condos. We traded two commercial properties in all of Big Sky and continue to see a high vacancy rate in commercial leases. *Data does not include all Yellowstone Club transactions
Price Ranges Sold by Transaction Count
Price Ranges Sold by Dollar Volume
A wave of activity occurred in the lower end market (under $500K) and we expect it to flow into the higher end market (over $500K) in 2012. Value opportunities have been absorbed (read: sold) in the low end market and buyers have just started to participate in the higherend market in an effort to find value in well-priced inventory.
It is intersecting to see that while the lower end market (below $500K) represents 75% of the transactions, it is only 31% of the total market volume. It is many people’s perception that foreclosures typically occur in the low end market, but you can see in the list to the left that there were 4 distressed sales over $1M this year.
Profile & Status Updates for our Resorts Moonlight Basin Moonlight Basin is a 8,150 acre public business model situated between Lone Mountain and the Spanish Peaks range in the Jack Creek drainage of Madison County. There are 1651 residential units fully entitled for development of which 353 have been built and sold. Amenities include a spa, 8,000-yard Jack Nicklaus golf course (the back 9 holes are completed) and 1,900 acres of pristine groomers, tree glades, and challenging steep terrain (with more terrain to come). Vacant land parcels vary in size from 1 acre to 160 acres. Residential options include private ski-in ski-out homes, cabins, and condos. Much of their real estate can be accessed on skis to both Moonlight Basin and Big Sky Resort’s 5,512 skiable acres (with the Lone Peak Pass). Moonlight Basin filed Chapter 11 bankruptcy in 2008 and has worked to restructure their debt. A definitive settlement between Lehmann Commercial and Moonlight Basin is tentatively scheduled for December 16th (as of press time). The close of the sale of Moonlight’s assets to Lehmann and an issuance of final decree will mark an official end to the bankruptcy. # active listings: 39 # sold in 2011: 15 Average sold / sf : $521.26
$ active listings: $66,792,000 $ sold in 2011: $27,711,000
Big Sky Resort Area Big Sky Resort is a public business model that is owned and operated by Boyne Resorts and is capitalized by CNL based in Orlando, Florida. The iconic Mountain Village operates as the ski area’s hub of activity and nightlife. Amenities include 3,832 acres of worldclass skiing, including 150 named runs covering over 85 miles on three separate mountains and a tram-accessable 11,166 foot peak, heated outdoor pools, two hotels, 18-hole Arnold Palmer golf course located in the Meadow. and a variety of on-mountain summer activities. Residential developer options include ski-in ski-out cabins and slopeside condos, starting at $149,000. There are no developer land options at this time. Mountain Village # active listings: 120 # sold in 2011: 49 Average sold / sf : $189.88
$ active listings: $61,842,650 $ sold in 2011: $21,636,250
Yellowstone Club Yellowstone Club is a 13,600 acre private business model encompassing Pioneer and Eglise Mountains in Madison County, adjacent to Lone Mountain. There are 864 entitlements of which approximately 345 non-equity residential memberships have sold since they opened in 2000. Amenities include 2,200 acres of Private Powder™, a Tom Weiskopf 18-hole golf course, first-class fitness center and outdoor heated pool, 140,000 square foot Warren Miller Lodge housing a spa, kids’ facilities, and a variety of entertainment and dining outlets. Residential options include custom homes, 160-acre private ranches, slopeside chalets, and base lodge Condos which range between $2M and $26M. In 2008, the Club filed Chapter 11 bankruptcy but has since successfully emerged. They are now well capitalized by a group comprised of CrossHarbor Capital Partners, LLC, Discovery Land Company and about 60 members. They have seen strong sales in the last year due to a re-setting of values in the resale market. # active listings: Contact Us Directly $ active listings: Contact Us Directly # sold in 2011: Contact Us Directly $ sold in 2011: Contact Us Directly
Spanish Peaks The Club at Spanish Peaks is a 5,700 acre private business model situated between Big Sky Resort and Yellowstone Club on Andesite and Flat Iron Mountains. They have 850 entitlements of which approximately 318 non-equity Residential and Golf Memberships have been sold since they opened in 2000. Approximately 40 homes have been built with about 6 currently under construction. Vacant land parcels vary in size from 1 acre to 25 acres. Their ski accessible real estate is also uniquely adjacent to a Tom Weiskopf 18-hole golf course, and offers private access to Big Sky Resort’s public skiing. A clubhouse acts as the center of activity for members as well as a yurt near the base of the Southern Comfort lift. In October 2011, their holding company, Spanish Peaks Holdings II, LLC filed Chapter 7 bankruptcy in a Delaware court. Things are changing daily with respect to their future so please contact us directly for the must current information. # active listings: 77 # sold in 2011: 12 Average sold / sf : $562.51
$ active listings: $89,093,688 $ sold in 2011: $$13,683,999
Year in Review - 2011 Properties Sold (To Date) Our mission is to give you the knowledge base to make informed decisions. We represent buyers and sellers.
Call us directly for up-to-date market information - 406.995.2244 PROPERTY
LIST PRICE
ORIGINAL PRICE
$/SF
Canyon Area TBD Gallatin Road 1000 Cascade Creek Road 531 Cascade Creek TBD Storm Castle Road 54320 Gallatin Road
$79,000 $92,000 $79,700 $130,000 $184,900
$99,000 $92,000 $79,700 $130,000 $194,900
127.42 296.77 120.76 194.03 264.14
PROPERTY
LIST PRICE
ORIGINAL PRICE
$/SF
PROPERTY
LIST PRICE
ORIGINAL PRICE
62 Candlelight Meadow Drive
$180,000
$180,000
96.83
Michener Meadows Lot 20
$225,000
Grey Drake Lot 7
$299,000
75 Firelight Drive
$174,900
$174,900
94.08
517 Firelight Drive
$169,900
$180,700
79.43
Moonlight Basin
397 Firelight Drive
$179,900
$179,900
96.77
Saddle Ridge C2
74 Candlelight Meadow Drive
$184,900
$184,900
86.44
Saddle Ridge F2 Saddle Ridge F4
$314,900 $359,000 $389,000
PROPERTY
LIST PRICE
ORIGINAL PRICE
$/SF
$685,000
Powder Ridge Cabin 47
$1,195,000
$1,195,000
358.43
$299,000
Summit Hotel Room 1007
$1,600,000
$1,600,000
513.31
5 BEEHIVE BASIN Road
$849,000
$1,100,000
287.8
44 Summit View
$1,274,000
$1,274,000
148.61
38 Middle Rider Road
$1,695,000
$1,695,000
339.88
928 Cascade Creek Rd
$84,900
$95,900
141.5
Summit View Lot 5
$225,000
$699,000
Cascade Sub Lot 186A
$199,000
$395,000
Lot #168A Cascade SD
$180,000
$224,900
Cascade 126A
$299,000
$299,000
Cascade Lot 340, Block 6
$280,000
$310,000
Cascade Lot 120A
$299,000
$350,000
90 Summit View Drive
$349,700
$349,700
Ridgeview Lot 3
$890,000
$890,000
$329,900 $359,000 $399,000
$/SF
178.82 203.86 220.9
34 Primrose Lane
$300,000
$309,000
121.21
503 Firelight Drive
$195,000
$195,000
91.29
Saddle Ridge B2
$410,000
$410,000
232.82
43 Paintbrush Place
$425,000
$425,000
130.65
49 Candlelight Meadow Drive
$201,000
$201,000
93.97
Saddle Ridge D2
$430,000
$430,000
244.18
381 Firelight Drive
$206,000
$219,000
111.71
277 Candlelight Meadows Dr
$199,900
$199,900
93.45
65550 Gallatin Road 1299 Dudley Creek Road 312 Windy Pass Trail 49825 Gallatin Road 355 Beaver Mountain Trail
$449,000 $429,000 $599,000 $699,000 $749,900
$495,000 $623,000 $599,000 $699,000 $824,900
249.44 268.13 183.97 272.2 314.42
2575 Curly Bear Road Silverbow 48
Saddle Ridge L1 Saddle Ridge U1 Alpine Meadows Suite 6A
$225,000 $239,000
$279,000 $375,000
173.08 170.71
Alpine Duplex 1A Alpine Meadows Suite 6C
$499,000 $595,000 $1,295,000 $1,395,000 $1,595,000
$499,000 $649,000 $1,295,000 $1,395,000 $2,250,000
229.32 276.1 518 604.42 531.67
84 Lazy T-4 Road
$1,174,900
$2,300,000
162.06
Deer Run 4E
$210,000
$224,900
110.06
Luxury Suite 2C
$1,495,000
$1,695,000
498.33
200 Towering Pines Road
$1,595,000
$2,499,000
299.59
677 Sunburst Drive
$239,000
$279,000
115.46
Cowboy Heaven Cabin 10
$450,000
$699,000
576.92
Spanish Peaks
54725 Gallatin Road
$1,695,000
$2,349,000
426.2
2575 Curley Bear Road
$239,000
$239,000
137.04
Cowboy Heaven Cabin 11
$542,000
$865,000
694.87
Cabin 23
$1,699,000
$1,699,000
591.57
500 Beaver Creek Road
$1,495,000
$1,550,000
282.08
51 Rose Hip Circle
$259,000
$259,000
135.32
Mountain Home 60
$895,000
$895,000
349.61
Cabin 22
$2,250,000
$2,450,000
657.32
360 Rainbow Ranch Road
$1,995,000
$2,285,000
306.92
647 Sunburst Drive
$275,000
$275,000
125.46
Mountain Home 63
$899,000
$899,000
340.53
6519 Beaver Creek Rd
$999,999
$2,595,000
571.43
59400 Gallatin Road
$97,500
$125,000
178.57
41 Blue Flax Place
$350,000
$350,000
179.49
Mountain Home 47
$1,079,000
$1,079,000
421.48
820 Elk Meadow Trail
$3,250,000
$3,595,000
449.7
Beavercreek West Lot 22B
$279,000
$399,000
21 Blue Flax Place
$299,000
$315,000
107.25
Alpine Meadows Chalet 76
$1,295,000
$1,295,000
488.68
658 Elk Meadow Trail
$5,000,000
$5,000,000
542.53
Buck Ridge Ranch Lot 12
$299,000
$450,000
Deer Run H2
$375,000
$395,000
176.3
126 Diamond Hitch Road
$2,495,000
$2,495,000
629.57
$5,000,000
542.53
Porcupine Park Lot 13A
$369,000
$369,000
C3 Blue Spruce Way
$325,000
$375,000
161.21
10 Hackamore Rd
$2,335,000
$2,750,000
447.92
Ranch 121
$140,000
$140,000
Greathorn Ranch Tract 1
$3,200,000
$4,750,000
3525 Ringneck Road
$299,000
$299,000
163.93
17 Renegade Road
$3,995,000
$4,650,000
574.99
Ranch 23
$139,900
$255,000
Deer Run G1
$395,000
$489,900
185.71
105 Peaks View Drive
$4,495,000
$4,950,000
620.6
Ranch 122
$195,000
$195,000
Deer Run I2
$375,000
$375,000
176.3
Lot 20 Diamond Hitch
$499,000
$499,000
Ranch 31
$197,000
$298,000
Spanish Peaks Club Condo 16D
$329,000
$399,000
153.74
Mountain
Big EZ Estate 20
$179,900
$229,900
$359,000
$359,000
Deer Run I1
$375,000
$375,000
176.3
The Lodge at Big Sky #320
Wildridge 37 Ski Tip Glade 12
$1,050,000
$1,050,000
Meadow Area RJS Building Unit 204 659 Spruce Cone Drive Gallatin Building Unit 13
$275,000 $295,000 $34,900
$275,000 $350,000 $39,900
98.33 95.36
$32,900
$39,000
71.21
Spruce Condo 6
$63,750
$75,000
101.19
F2 Blue Spruce Way
$345,000
$345,000
171.13
The Lodge at Big Sky #214
$29,900
$29,900
64.72
Gallatin Building Unit 16
$48,000
$90,000
89.55
$472,500
158.41
Hill Condo 1192
$40,000
$40,000
90.91
$65,900
$65,900
56.81
Spanish Peaks Club Condo 21D
$339,000
193 Spruce Cone Drive
Hill Condo 1243
$40,000
$48,900
90.91
Firelight Condo 3C
$85,000
$85,000
77.84
Crail Creek Condo 615
$399,000
$495,000
159.6
Hill Condo 1203
$37,950
$54,950
86.25
Firelight Condo 6A
$75,000
$99,500
68.68
Spanish Peaks Club Condo 27A
$424,900
$448,000
176.82
Hill Condo 1264
$52,000
$52,000
118.18
Silverbow 55
$75,000
$75,000
107.76
Hill Condo 1260
$49,000
$49,000
108.89
Firelight Condo B6
$79,900
$94,900
73.17
Hill Condo 1277
$75,000
$99,000
112.28
Firelight Condo C8
$84,900
$84,900
77.75
Hill Condo 1229
$63,000
$65,000
143.18
Firelight Condo B8
$77,250
$77,250
70.74
Hill Condo 1352
$65,000
$125,000
147.73
Firelight Condo 5C
$85,000
$115,000
77.84
Hill Condo 1334
$78,000
$78,000
177.27
Yellowstone Condo 88
$83,500
$83,500
Cedar Creek Condo 8
$82,000
$82,000
144.88
8 Firelight Drive
$89,900
Spruce Condo 51 Firelight Condo 19C
Elevation 6000 B1 Lone Peak Townhome 10 145A Pheasant Tail Rd
$550,000 $499,000 $444,900
$550,000 $499,000 $509,000
203.18 207.92 173.92
133A Pheasant Tail Lane
$497,500
$497,500
166.28
$519,900
$549,000
204.04
125.75
Spanish Peaks Club Condo 8E
$89,900
82.33
2265 Little Coyote Road
$299,000
$319,900
190.69
Cedar Creek Condo 15
$84,000
$84,000
107.28
$94,900
$99,900
110.09
2455 Little Coyote
$350,000
$350,000
194.44
Cedar Creek Condo 18
$69,000
$175,000
88.12
$79,900
$79,900
64.75
98 Limber Pine
$329,000
$389,000
219.33
Cedar Creek Condo 10
$70,000
$70,000
89.4
Firelight Condo 16C
$85,000
$85,000
77.84
2550 Curley Bear Road
$426,900
$449,500
144.61
Cedar Creek Condo 26
$76,500
$172,000
97.7
Spruce Condo 11
$94,500
$94,500
132.17
380 Spruce Cone Drive
$399,000
$399,000
185.75
Cedar Creek Condo 16
$97,000
$97,000
123.88
Broadwater 185
$89,000
$89,000
134.85
2165 Yellowtail Road
$299,000
$299,000
91.27
Cedar Creek Condo 35
$94,900
$179,000
109.33
Glacier Condo 160
$109,900
$137,500
149.73
2310 Yellowtail Road
$399,900
$599,900
151.48
Stillwater Condo 1021
$129,500
$129,500
242.51
Broadwater 187
$98,000
$136,000
104.7
2695 Curley Bear Road
$420,000
$565,000
180.41
Stillwater Condo 1040
$259,000
$269,000
287.78
Firelight Condo 10D
$105,000
$159,000
96.15
50 Skywood Road
$429,000
$490,000
336.21
Shoshone 1953
$199,000
$199,000
227.17
Firelight Condo 20A
$115,000
$115,000
93.19
125 Chief Joseph Trail
$499,000
$799,000
210.37
Big Horn 11
$300,000
$325,000
172.71
Firelight Condo D6
$105,000
$105,000
96.15
1881 Little Coyote Road
$437,000
$549,000
174.8
Big Horn 37
$400,000
$635,000
234.6
Pine Ridge Condo #8
$96,000
$96,000
81.77
1792 Little Coyote Road
$575,000
$675,000
186.45
Big Horn 69
$380,000
$495,000
238.24
Firelight Condo 11A
$128,250
$135,000
103.59
2715 Little Coyote
$599,000
$649,000
239.6
Village Center Room 208
$449,000
$449,000
590.79
Broadwater 180
$149,500
$175,000
151.32
2605 Little Coyote
$689,000
$689,000
217.08
Alpenglow Condo 19A
$369,000
$479,000
159.12
Firelight Condo 2D
$115,000
$115,000
105.31
466 Antler Ridge Road
$633,600
$633,600
113.14
Elkhorn Condo 1302
$485,000
$515,000
149.97
Aspen Court 1
$149,000
$189,000
128.89
336 Autumn Trail
$759,000
$949,000
210.83
Arrowhead 1672
$675,000
$775,000
346.15
Hidden Village 81
$179,900
$220,000
93.41
121 Silverado Trail
$795,000
$795,000
277.97
Moosewood Condo Unit F
$644,900
$644,900
231.15
Glacier Condo 152
$145,000
$145,000
197.55
350 Misty Way
$864,000
$1,070,900
213.86
Black Eagle Lodge 30
$698,000
$1,395,000
252.9
Glacier Condo 157
$159,900
$199,900
217.85
170 GRAY OWL LANE
$999,000
$1,300,000
293.82
Powder Ridge Cabin 130
$699,000
$825,000
341.48
Madison Court 11
$144,900
$157,900
103.5
1555 Silverado Trail
$1,999,995
$1,999,995
307.69
Powder Ridge Cabin 131
$699,000
$699,000
340.98
68 Rose Hip Circle
$142,500
$142,500
73.15
229 Amber Lilly Lane
$2,695,000
$2,695,000
374.31
Powder Ridge Cabin 135
$727,000
$865,000
316.09
109 Candlelight
$143,900
$156,900
77.41
West Fork Meadows Lot 6
$63,500
$63,500
Powder Ridge Cabin 127
$895,000
$895,000
292.77
Gray Wolf Condo 2830
$150,000
$150,000
84.65
Block 5 Lot 10
$79,900
$99,900
Black Eagle Lodge 11
$995,000
$995,000
361.82
Madison Court 5
$179,000
$189,500
157.02
6.66
Helms, Jamison & Kulesza JEFF HELMS Broker
TALLIE JAMISON Associate
RYA N KULESZA Broker
Yellowstone Club Yellowstone Club sales information available upon request. Sotheby’s successfully negotiated condo, land and home transactions within Yellowstone Club in 2011.
Commercial Condominium Lot Home
Visit page 29 for more information about our team HELMS
4 0 6 . 9 9 5 . 2 2 4 4 • B IG SK YSI R . C OM All statistics included in summary derived from MLS. This material is based upon information which we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete, and it should not be relied upon as such. This offering is subject to errors, omissions and changes including price or withdrawal without notice. An Equal Opportunity Company. Equal Housing Opportunity. Each Office in Independently Owned and Operated. If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully.
JAMISO
KULESZ