Thursday, June 10, 2010
Tuesday, May 11, 2010
Home Prices Gain in 91 U.S. Cities in First Quarter
http://www.businessweek.com/news/2010-05-11/home-prices-gain-in-91-u-s-cities-in-first-quarter-update3-.html
Monday, April 19, 2010
The deals are disappearing from the Summit County Real Estate Market!
The single family home market is always the "last in and first out" when the market corrects. We are definitely seeing this occur in Summit County. Most of the incredibly low priced single family homes have been absorbed. Opportunities continue to arise but these are rare cases and are immediately purchased by savvy Buyers waiting for such a deal to become available. This absorption has definitely shown that the single family home market has reached the bottom. Prices have stabilized.
The condominium and vacant land market historically lags behind home sales. Although Buyer activity has recently strengthened dramatically, there are still some incredible opportunities for you to take advantage of. Financing has become available for both condos and vacant land. This has opened the market up to a large amount of Buyers who were not able to pay cash for the property in 2009. Since many financial experts are predicting interest rates to rise, this is also causing many Buyers to purchase now and thus lock in their interest rate for 30 years.
Since Buyers are buying, there are actually less properties on the market this Spring than we have seen in previous years. With this pent up Buyer demand the Summit County real estate market is quickly changing. Soon, the inventory of great deals will be totally depleted and prices will begin to rise.
If you have been waiting for the right time to purchase your mountain property, be careful not to miss this opportunity. There are still some quality properties available at deeply discounted prices but they are quickly being purchased.
The condominium and vacant land market historically lags behind home sales. Although Buyer activity has recently strengthened dramatically, there are still some incredible opportunities for you to take advantage of. Financing has become available for both condos and vacant land. This has opened the market up to a large amount of Buyers who were not able to pay cash for the property in 2009. Since many financial experts are predicting interest rates to rise, this is also causing many Buyers to purchase now and thus lock in their interest rate for 30 years.
Since Buyers are buying, there are actually less properties on the market this Spring than we have seen in previous years. With this pent up Buyer demand the Summit County real estate market is quickly changing. Soon, the inventory of great deals will be totally depleted and prices will begin to rise.
If you have been waiting for the right time to purchase your mountain property, be careful not to miss this opportunity. There are still some quality properties available at deeply discounted prices but they are quickly being purchased.
Friday, March 19, 2010
Postponing your Home Purchase while you hope for values to Decline Further May Price You Out of the Market
I believe the likelihood of rising interest rates makes purchasing now a better option than waiting and hoping for further potential value declines. Simply stated, there is a greater possibility of interest rate increases than potential value declines. Even if the price does decline, the interest rate increase may result in your loan payments being higher than you are comfortable with or for which you qualify for today.
To make the comparison simple, let’s assume you a considering purchasing a $650,000 property with a loan amount of $500,000. With a 30-year fixed-rate loan at 5.5%, the monthly payment is $2,839. Many real estate experts are forecasting that Real Estate prices are at or near the bottom of the market interest rates are going up. Let’s examine your payments if you waited a year to purchase and values did decline 10%. If interest rates have risen as expected to 7%, your payment on a $450,000 loan is $2,994. This is $155 more! A 1.5 percent increase in rates to equates to a 15 percent price decline, and a 2 percent increase necessitates a 20 percent price decline to qualify.
To make the comparison simple, let’s assume you a considering purchasing a $650,000 property with a loan amount of $500,000. With a 30-year fixed-rate loan at 5.5%, the monthly payment is $2,839. Many real estate experts are forecasting that Real Estate prices are at or near the bottom of the market interest rates are going up. Let’s examine your payments if you waited a year to purchase and values did decline 10%. If interest rates have risen as expected to 7%, your payment on a $450,000 loan is $2,994. This is $155 more! A 1.5 percent increase in rates to equates to a 15 percent price decline, and a 2 percent increase necessitates a 20 percent price decline to qualify.
Saturday, February 27, 2010
Where are the good buys in Breckenridge?
Single Family Homes
The single family home market has been the least affected by the downturn, mostly due to stable demand and the availability of financing. However, especially in the remaining builder inventory, there are some great opportunities to buy a new home at or below cost. There are some bank owned properties but the quality homes are being snapped up quickly, leaving only the homes that you wouldn't want to own.
Condominiums & Townhomes
Mostly due to the lack of available financing, the condo market has been very stagnant. After 18 months, some Sellers are starting to lower prices significantly hoping to attract a cash investor. However, financing has recently loosened so I expect inventory to drop significantly in 2010. But right now, there are some fantastic deals available.
Vacant Land
Vacant land went from a little overpriced in 2008 to significantly under valued in 2010! This is especially noticeable in the Ski in ski out sector. Based on recent sales of several luxury homes, it has become up to 30% cheaper to buy a lot and build your custom home than it is to buy an existing home. There are some very good lot buys available.
The single family home market has been the least affected by the downturn, mostly due to stable demand and the availability of financing. However, especially in the remaining builder inventory, there are some great opportunities to buy a new home at or below cost. There are some bank owned properties but the quality homes are being snapped up quickly, leaving only the homes that you wouldn't want to own.
Condominiums & Townhomes
Mostly due to the lack of available financing, the condo market has been very stagnant. After 18 months, some Sellers are starting to lower prices significantly hoping to attract a cash investor. However, financing has recently loosened so I expect inventory to drop significantly in 2010. But right now, there are some fantastic deals available.
Vacant Land
Vacant land went from a little overpriced in 2008 to significantly under valued in 2010! This is especially noticeable in the Ski in ski out sector. Based on recent sales of several luxury homes, it has become up to 30% cheaper to buy a lot and build your custom home than it is to buy an existing home. There are some very good lot buys available.
Monday, February 22, 2010
Summit County Colorado Real Estate 2009 Statistics
2009 Summary for Summit County
Summit County ended 2009 with $683,009,100 in monetary volume. This is 36% shy of last year’s total. Transactions in 2009 totaled 1245, 32% shy of last year’s total.
The areas that show an increase in median average price for Single Family 2008 to 2009 are: Breckenridge at 14%, Keystone at 27%, Silverthorne at 20%. The total Median Price Single Family Gross Live Median increased by 4%.
The areas that show an increase in median average price for Multi-Family 2008 to 2009 are: Copper Mountain at 21%, Silverthorne at 2% and Summit Cove at 22%. The total Median Price Multi-Family Gross Live Median decreased by 10%
The total Median Price for Vacant Land decreased from 2008-2009 by 3%.
There were 136 Residential Improved Units that sold for $1M and over in 2009 vs. 177 in 2008 and 208 in 2007.
The average price history for Real Estate transactions on the Residential Improved Unit side still hold steady with 4 full years of historical data: Single Family continues to show an increase: $905,030, Multi-Family, slight decrease at $398,051- relatively flat, and Vacant Land with a slight decrease- relatively flat.
Cash transactions are averaging around 40% each month.
The highest sale in Summit County occurred on 12/21/2009 $8,285,000 Timber Trail Sub Lot 9 – 382 Timber Trail Road – 7 Brm 9 Bath – Built in 2008 – 6,565 SF on .545 Acres. This is $1,262.00 PSF, a record price. The home is located in Breckenridge on Peak 8.
If you would like a detailed analysis of what happened in 2009, just let me know & I will email you a pdf file.
Summit County ended 2009 with $683,009,100 in monetary volume. This is 36% shy of last year’s total. Transactions in 2009 totaled 1245, 32% shy of last year’s total.
The areas that show an increase in median average price for Single Family 2008 to 2009 are: Breckenridge at 14%, Keystone at 27%, Silverthorne at 20%. The total Median Price Single Family Gross Live Median increased by 4%.
The areas that show an increase in median average price for Multi-Family 2008 to 2009 are: Copper Mountain at 21%, Silverthorne at 2% and Summit Cove at 22%. The total Median Price Multi-Family Gross Live Median decreased by 10%
The total Median Price for Vacant Land decreased from 2008-2009 by 3%.
There were 136 Residential Improved Units that sold for $1M and over in 2009 vs. 177 in 2008 and 208 in 2007.
The average price history for Real Estate transactions on the Residential Improved Unit side still hold steady with 4 full years of historical data: Single Family continues to show an increase: $905,030, Multi-Family, slight decrease at $398,051- relatively flat, and Vacant Land with a slight decrease- relatively flat.
Cash transactions are averaging around 40% each month.
The highest sale in Summit County occurred on 12/21/2009 $8,285,000 Timber Trail Sub Lot 9 – 382 Timber Trail Road – 7 Brm 9 Bath – Built in 2008 – 6,565 SF on .545 Acres. This is $1,262.00 PSF, a record price. The home is located in Breckenridge on Peak 8.
If you would like a detailed analysis of what happened in 2009, just let me know & I will email you a pdf file.
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