Land depreciation in Perry Park, Larkspur? (Denver, Colorado Springs: bank owned, ski resort, mineral rights)

[tnk787]

We are looking to buy a lot or two in Larkspur for a vacation or retirement home. Want great views and over 1 acre with budget up to $130K. Don't care if it's built ready because we don't plan to build within the next 5-10 years. My husband is a Colorado native who has lived in Denver metro area most of his life. I've lived here for close to 20 years.

Found a couple lots that we like in Perry Park and looking at their history, their asking price is half of what they were bought for in 2005-2006. The recent property tax in 2014 is also half of what it was in the last few years. We are very puzzled about the depreciation. Could somebody who has knowledge about the area enlighten us?

[Mire]

The wildfire seasons of 2012 and 2013 might've played a part in that.

[Littlekw]

2005-2006 was the last good year for real estate in general, nationwide. Everything real estate related was a sure bet and prices were higher than ever before, as well as appreciation. It's a different world now.

In exurbs like Perry Park, prices climbed like crazy during the real estate boom. When all that crashed, semi-remote places didn't fare well. Perry Park was probably a victim of that. It is within commuting distance of both Denver and Colorado Springs but only barely. When real estate was booming and gas prices were low it was an attractive place to live and drive an hour-plus to work from. Now that gas prices are stifling and the economy is still struggling it's still a beautiful area to live in but not an ideal place to commute from. That's my theory, anyway.

Larkspur, the town, will probably fare better than Perry Park. It has easy access to I-25 to take you into both Colorado Springs and the expanding southern suburbs of Denver metro. Perry Park doesn't have that easy access. It's CO105 either south to Palmer Lake or north to Sedalia. In the winter that road can be brutal. No shoulder, random turning lanes and blind driveways the entire route. Winter driving makes that a tough situation, summer driving isn't much better because the highway hasn't kept up with the population and housing growth. Perry Park does have a neat history, though, as does a lot of that area. I'm a Colorado history buff so I have to share this link with you on Perry Park: http://larkspurhistoricalsociety.org...ark/index.html That area has been attractive as a resort spot for many decades. It has just recently suffered because it's not an easy place to get to work from and it has relied heavily on second-home ownership. Neither situations have fared well in the recent economy.

[jmarno]

In Pagosa Springs we experienced the same decline from the "2006 Boom" Only I would call that more of a rape. In our situation a VERY WEALTHY developer came in and bought a lot of property and then monopolized the market by turning around and almost doubling the price ... almost over night. A lot of folks who bought during that time lost a lot. Another heart break was elderly in our community could no longer afford property taxes, and were forced to move. I say all that to say that the prices now, I think, might be reflecting some honest worth; and to understand prices before were reflective of extreme greed. Perry Park looks like an awesome place to live if you are ready to retire, or don't mind long, sometimes dangerous commutes.

[Rainbow Demon]

2008-09 saw HUGE corrections in home/land pricing from the continuous gains of the 90's and early 2000's. Most areas saw a drop of valuation anywhere from 1/3 to 1/2 of 2008 levels. There were definitely a bunch of folks who were caught speeding/thinking that the boom would never end.

However, those of us who have been here for decades have seen the roller coaster ride that is Real Estate in Colorado. The late 70's-esarly 80's saw a similar drop when the oil/gas markets crashed. Condos/homes were being spec'd and built sight unseen via large money from Texas/Cali/etc... and when it crashed there was a serious glut of available and BANK OWNED properties. Here in the Vail Valley in '84-86 about 1/2 of the homes were vacant and owned by banks elsewhere. It's was crazy.

So it doesn't surprise me to hear that the land you are pricing is in the same boat. Someone spec'd...and lost. You should also be aware of "other" factors as well though...like the fire danger...whether there's a well permitted on the land...if the septic test will "perc".... if you have water rights (doubtful) and mineral rights (important in this day and age) and many other hidden treats. Don't get suckered in by the beauty and pay too much. It isn't the only lot in CO.

Best of luck in your purchase

[tnk787]

Thank you all for the info and tips on things to look for when buying land. We love what we have seen about a Perry Park and Larkspur in general and would like to drive down for a few visits this year in see it in various weather conditions. We're not in a hurry to buy and would only commit when everything is close to perfect. Any additional tips and information on the area are greatly appreciated.

We are familiar with the housing boom and burst of the last decade. We were fortunate enough to be able to buy our current house at close to bottom of market in 2009. These days, houses in our area are selling fast and at an unbelievably high price so it was surprising for us to see the opposite trend in Perry Park.

[Littlekw]

Perry Park is a nice area. Definitely take a trip and do your due-diligence, though. When this thread got bumped up again I took an online look at lots for sale in the Perry Park area. It's a hodge-podge mix of prices, location and desirability it would seem. One acre lots range from $20,000 to $150,000 within a couple of miles of each other. Get a good realtor, a good, personal feel for the area and good luck!

[Rainbow Demon]

I'm not familiar with Perry Park. Why are one acre lots so pricey there? What's the draw? Gated community? Lake? Creek?

150K for an acre is completely crazy unless there's a ski resort/some other draw there to ensure a decent resale value.

Either way, I hope it works out for you if that's your desire.

[tnk787]

What draws us to Perry Park?
- views of large body of water (Wauconda reservoir) and golf course
- rock formation
- private country club
- seems lush and no water issue (need to see for ourselves - potential deal breaker if not)
- close enough to get to the Denver metro within an hour but at the same time remote enough to be quaint and quiet (need to confirm).
- can wait to build in 10 years (ie reasonable property tax in the next few years)

If you know of other areas that fit our criteria, please do let us know!

Expensive is relative I guess. We are in south Denver metro and an .25 acre lot across the street from our house just got sold for $197K. That is crazy to us . With our budget, we are hoping to get 2-5 acres but will settle for 1-acre lot with good location and spectacular views.

[Rainbow Demon]

Understood on the "relative" term. I've spent the last 30 years in the Vail Valley!

FWIW, there are a few member-owned golf course developments similar to Perry Park here. It might be a worthy search to read a bit about "Cordillera" and the challenges the owners have faced there over the last few years keeping their golf course/country club/etc. in operation.

Either way, best of luck going forward.