Greetings from Wintergreen!!!

For many of us who live and work at Wintergreen, November 25th couldn’t come sooner. Sure, the fall foliage and the magnificent colors of a Blue Ridge autumn are one-of-a-kind, but there’s something to be said about taking that first run down Eagle’s Swoop, enjoying the warmth of a good cup of hot chocolate, and gathering with friends and family at the fireplace after a long day of skiing.  With the cool, crisp air setting in, and overnight temperatures that reach the mid-20s, it’s safe to say that we at Wintergreen Real Estate are a bit excited for ski season. Fortunately, we only have to wait one more month until the Resort opens its gates to the downhill frenzy.

In preparation for the 2006-2007 season, Wintergreen Resort has made some significant upgrades to its ski and snowboard facilities. Most notably, it has developed a new beginner ski area on Discovery Ridge, complete with beginner-friendly conveyor lifts and terrain that is designed specifically for newcomers to the sport. If you’re not yet a skier or snowboarder, now’s the perfect time to start learning.

The terrain park also has some additions, including smaller tabletops for those just getting into the thrills of extreme skiing and snowboarding. Lastly, 10 new snowmaking guns have been added to the Highlands ski slopes. With these additions, the more advanced skiers and snowboarders can expect more snow, and better snow, as they tear through the black- and double-black diamonds.

In early October, the Resort held a one-day kickoff party for season ticket holders. Sarah Lovejoy, Communications Manager for the Resort, said the event was a huge success and that a record number of season passes were sold. With a packed schedule of exciting ski events this season, including another guest appearance by Olympic Gold Medalist Jonny Moseley, we perfectly understand the flurry (pun intended) of pre-season activity.

So dust off your skis or snowboard, make sure the snow pants still fit, and start making plans to spend an exciting winter at Wintergreen. We look forward to seeing you on the slopes! Real Estate Market Update

These days, it seems difficult to open the newspaper and not find an article discussing recent trends in the real estate industry. With all the confusion spurred by national media, we thought we’d take just a moment to discuss that we know best--the local Wintergreen market.

Wintergreen has certainly experienced an unprecedented growth in number of properties and corresponding values over the past six years. Of course, in the past 9-12 months, the national market has cooled significantly. To fully understand this change of events, we must look at several key factors.

When the dot-com industry crashed in 2000, many Americans turned to real estate as a safer form of investment than stocks. This shift in focus was then accelerated by the terrorist attacks of 9/11, which caused a fundamental change in American values, placing more importance on family and leisure time, particularly for those living in the D.C. area. With the strikingly low interest rates (4-6%) of the time, it was easy to borrow money and many Americans looked to second/vacation homes as the perfect investment.

As a result, the demand for second homes (such as ours at Wintergreen) skyrocketed, and wasn’t immediately met with a corresponding supply of properties. For five years, demand far outweighed supply at Wintergreen, and we witnessed record gains on property values. However, the rate at which properties and property values were increasing was dangerously unhealthy and would eventually need to slow down.

In the course of the past year, several factors have led to a cool down in the local real estate market. With the booming national economy, combined with the record performance of the Dow Jones, many of the original investors/speculators have withdrawn from the real estate market and returned to the stock market. In addition, the Fed’s 17 consecutive rate hikes, combined with gasoline prices that were averaging more than $3 a gallon, caused millions of Americans--including those in our target market--to become more conservative with their spending. The increased supply of properties on the Wintergreen market, met with a slight decrease in demand, has caused a slow down in real estate transactions.

But the sky is not falling!  There are plenty of signs that indicate that we are still in a very healthy market. Long-term mortgage rates remain attractive, especially when compared to the rates of the early 1980s. Gas prices have plummeted in the past six weeks. The economy is strengthening daily.  Most importantly, the primary audience interested in second/vacation homes--the baby boomers--is just reaching its peak investment period. Not only are the boomers the largest population of all generations, but they are also the wealthiest.

The boomer generation is increasingly intent on staying active through pre-retirement and retirement. The Boomers love to golf, play tennis, socialize with family and friends, take continuing education classes, and become involved with the community. With the wealth of activities at the Resort, coupled with the unparalleled offerings of Charlottesville, Wintergreen offers a very attractive lifestyle.

In the short term, we may continue to see a slowing of the real estate market, but this is no reason to be alarmed.  As Dave Robertson, CEO of RPI Media in Raleigh, North Carolina, states, “The cornerstone of amenity communities sales [such as Wintergreen] is the end user. They buy in spite of rising interest rates, falling market or the economy.” Here at Wintergreen Real Estate, we look forward to continued growth in our local market, albeit growth at a much healthier, sustainable rate than the past five years.

Note: Dave Robertson of RPI Media contributed to this article.