Is Now a Good Time to Buy a Property in Summit County?
Updated March 21, 2017
There are a number of individual variables that affect whether now is a good time for you, personally, to buy Summit County real estate. These variables include everything from your credit and the type of loan you might qualify for, to whether you have a home to sell first, to how urgently you’d like to own a new home or condo. We can talk about each of these variables on an individual basis, and I look forward to meeting with you so we can do so.
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? 5 Things to Keep in Mind
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.)
In many market segments, inventory of available properties is very low right now (read my explanation as to why), but buyer interest is high.
Historically, we see more properties coming on the market as we head into spring and summer, but the number of available properties will remain low overall. Let’s make sure we have spoken and I know your wants and needs so you can be the first to know about properties of interest to you as soon as they come along. And read my tips for buyers on dealing with a low inventory market so you can make sure you’re prepared.
2. Mortgage Interest Rates are Trending Upward
Another factor that will increase your cost of buying: Interest rates are projected to increase as the year moves forward.
Here are some predictions on where rates will be by the end of 2017:
HSH.com: “We think that conforming 30-year fixed rates probably make it into the 4.625 percent to 4.75 percent range at some point during 2017 as a peak.”
Svenja Gudell, Zillow’s Chief Economist: “I wouldn’t be surprised if the 30-year fixed mortgage rate hits 4.75 percent.”
Mark Fleming, the Chief Economist at First American: “[I see] mortgage rates getting much closer to 5 percent at the end of next year.”
Lawrence Yun, NAR Chief Economist: “By this time next year, expect the 30-year fixed rate to likely be in the 4.5 percent to 5 percent range.”
Getting a mortgage while rates are low means you can get more house for your money.
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