Is Now a Good Time to Buy a Property in Summit County?
October 11, 2017
Summit County is relatively quiet this time of year. That means it’s a great time to look at real estate… Many of the strong rentals are finally available to view on a consistent basis.
Remember that, if you find a property now, you’ll still have time to close and get settled in before the holidays – or get your home on a rental program before the lucrative winter season.
While we don’t typically see a large number of properties coming on the market this time of year, we are seeing some gems, and there continues to be strong investor interest and activity as well
Together, we can look at individual listings, trends, and market stats so you can understand what they mean for you – and for the type of property you’re targeting – in today’s real estate climate.
There are many different variables to consider, and I look forward to talking about each of these variables on an individual basis.
Below, I’ll share with you whether the general conditions of the market indicate that it is a good time to buy.
Is Now a Good Time to Buy Summit County Real Estate? 4 Important Considerations
1. Prices Are Trending Upward.
Prices in our real estate market are trending upward. (Click here for more details and statistics on the current real estate market in Summit County.)
Average Sold Price for all residential real estate in Summit County is up 18.5%.
And the number of sales is up +3.5%.
REQUEST SPECIFIC DATA & TRENDS
As you can imagine, each area, subdivision and subset of the market tells a slightly different story. Whether you are considering buying or selling, I’m always happy to provide a detailed analytical perspective on any specific complex or subdivision you are interested in. Just email me to request a customized market report. This report will feature properties currently for sale, properties under contract and sold properties, along with year-to-date and historic sales and trends.
CREATE YOUR OWN MLS PORTAL
I can create a personal MLS portal for you so you can have instant and direct access. That way, you can see the same information that we Realtors see, and we can both make sure you are seeing the properties that are interesting to you as soon as they ome on the market. Just email me to set it up.
2. Mortgage Interest Rates are Projected to Increase
Four major entities (Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors) are still projecting that rates will increase by the fourth quarter of the year.
With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.
3. The Rental Market is Tight.
If you’ve been trying to rent a home or condo in Summit County, you know that we are undergoing what experts are calling a housing crisis, as demand is high and a number of homes and condos have evacuated the long-term market in favor of joining the short-term rental pool.
According to a study by Turbo Tenant and published in the Summit Daily News in January 2017,the average long-term winter rental rate for a 2-bedroom in Breckenridge is $1,987.
But if you can manage to own your own home, you might see significant financial advantages. As a paper from the Joint Center for Housing Studies at Harvard University explains: “Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”
Read “Buying a Home is a Better Way to Produce Wealth than Renting.”
Read “Harvard’s Five Financial Reasons to Buy a Home.”
Read “Homeowner’s Net Worth is 45X Greater Than a Renter’s.”
I’m happy to share the names of some good local lenders, so you can see just how much you might qualify for and how much of a down payment might be required so you can determine how quickly you might be able to move forward on a home loan.
4. Is it Time to Move On?
As we’ve discussed, the cost of your new home will be determined by two factors: the home’s price and the mortgage rate. Both of these factors appear to be increasing. If the right thing for you and your family is to purchase a Summit County property this year, buying sooner rather than later could lead to substantial savings.
That said, there are usually significant personal reasons that impel a person to begin a home search. Consider the primary reasons you are thinking about buying Summit County Real Estate. Whether you want a place to spend vacations with family and friends, you want a second home you can rent out when you’re not in town, or you’ve simply always dreamed of living in a high alpine paradise, this seems to be a good time to at least start the conversation.
Together, we can look at your individual circumstances and make a game plan and a timeline. Please know that you will never feel pressured or obligated in any way. My job is to simply help you understand your options and the market conditions that can best help you reach your personal and financial goals.
You might also like:
Buying a Home? Consider Cost, Not Just Price
How Susie Works with Buyers
How to Buy a House: Susie’s Comprehensive Start-to-Finish Guide
Is Now a Good Time to Sell Summit County Real Estate?
More Summit County Real Estate FAQs