Last week, the Mortgage Daily wrote an article on the National Association of Realtors study on the home market in 2007 and, where second home sales fell along with the overall market, second home sales accounted for 33% of all new and existing home sales. This percentage was down slightly for the 2006 figure of 36%. 

      The Investment and Vacation Home Buyers Survey was extensive and showed a total decline in primary home sales, Vacation homes and Investment home markets but the primary home sales declined 10% (from 4.82 million in 2006 to 4.34 million in 2007) where vacation home sales dropped just 2% and investment home sales dropped just 1% over the same year.  

     Vacation home sales declined to 740,000, a 30.6% drop, but that was down from the 2006 record-setting year where 1.65 million sales occurred.  Vacation homes made up 14% of the total market of homes purchased in 2006 and 12% in 2007.  The typical vacation home buyer was 46 years old and had a median household income of $99,100.  They purchased property that was a median of 287 miles from their primary residence. 65% of vacation home buyers bought existing homes while the remaining 35% bought new homes. Tight supplies led to a pent-up demand from buyers which made 2006 a record year.

     Investment properties declined at the smaller rate of 18.1%; there were 1.65 million transactions on 2006 and 1.35 million in 2007.  That dropped from the total market transactions in this category from 22% in 2006 to 21% in 2007.  The typical investment home buyer was 42 and earned $92,900 in household income.  They typically bought homes at a median of 27 miles from their primary residences.  71% of investment home buyers bought existing homes and the remaining 29% bought new homes.    

    Lawrence Yun, NAR's cheif economist, said that the overall sales decline in 2007 was a combination of factors.  During periods of uncertainty, times of tightening credit and mortgage industry disruption, there is a natural pull back on big-ticket items.  He also said that strong demographics and lifestyle choices remain positive for the vacation home market as a peak of population is moving through the prime years for buying recreational property. 

      Germany's District 1940 exchange group has recently arrived in Colorado and I had the opportunity to meet them.  The exchange group is on an intense work/study program for a month where learn how their professions are done in Colorado. The incoming sponsor is District 5450.   

       The group is led by Dr. Richard Pyritz- a veterinarian.  Richard is a tall man, 68 years of age, with a kind smile and white beard.  He leads three men and three women.  Of the men, Dr. Thomas Koch is a scientific assistant at the Technical University in Cottbus, Jens Kruggel does handcrafting on motorcars and Carsten Wagner is a spokesman and PR manager in the Association of German Public Sector Banks.  Carsten explained to me that the Public Sector Banks are a different system of banking than we have in America.

     Of the women, Irene Patzug is a sculpture artist, Thurid Rathke is a physician in gynaecology and midwifery and Nadine Rossman works in Brussels as a legal advisor to the Federation of German Industries.   

     The team speaks excellent English and has a flair of properness that is exemplary of German posture.  Most of the group has been to America before but on this trip they are on a tight schedule of sightseeing, work exchange and Rotary clubs.  They come to the Summit County Chapter next week, April 22nd, and then head to Vail for the District conference, April 25-27.   

      Although their schedule is very intense, they get a few days of rest and relaxation up here in Summit County.  We hope to take them shooting, after all this is the Wild West to them, and Germans, in general, have a fascination with the American Western; it is also true that Germans are not allowed to carry handguns.  They had also asked if they could pan for gold, unfortunately our rivers are still mostly frozen! 

The newspaper came across my desk almost three weeks ago, and the front-page article indicates that Vail has offered the Epic Pass for the 08-09 season.  I almost do not believe it, just as I don't believe there is a snowstorm howling outside the SnowHome Properties Office dropping inches on snow on what should be a calm April day.  The Epic Pass gives anyone who signs up for it unlimited and unrestricted access to all 5 Colorado mountain resorts- Vail, Beaver Creek, Breckenridge, Arapahoe Basin and Keystone - and also Heavenly.  You have until November 15th to get yours.

This move by Vail, offering a pass that is cheaper than the Vail season pass but comes with all it's benefits, stirred a conversation with a local graphic artist.  From my understanding, before the Epic pass, merchants had to join a business association in order to get their employees a discounted Vail season pass.  Vail Valley Partnership is an example, but each major town in Eagle County has one.  The business owner used to pay to join and a season pass dropped from $1,849 to $869 for the 07-08 season.  The fees to join are steep, but as a bonus, you are required to help fund an advertisement magazine to show your product and promote local business.  Unfortunately, Vail decided to have an out of state  graphic artist and printer take on this project, which doesn't help or promote local business.  Now with the discounted Epic pass, employers will no longer need to retain membership in the business associations to get the discount on the pass.  If they don't want to pay Vail's fees for advertising and printing, they can spend those advertising dollars with local printers and graphic designers.  The Epic pass is a pleasant switch from Vail after steady increases in season pass prices over the past few seasons.

Vail will still offer the Summit Pass, formerly the Buddy Pass, which gives the rider unlimited Keystone, Breckenridge and Arapahoe Basin for $399 and the Colorado Pass- KAB and 10 days at Vail and Beaver Creek with black out dates for the busy weeks for $439.

Pray for great snow next year.