Here in Steamboat Springs, we are seeing activity in the Real Estate market increase significantly over the same time last year. Clients and friends are consistently asking me, "Has the real estate market bottomed yet". Not a yes or no answer and it depending on what your position is in the market. Are you an owner of a property you purchased in 2007, or are you sitting on cash waiting to buy? Overall, if every property was repriced, every day to where buyers would buy, we would be seeing an increase in price for many properties. Unfortunately, this is unrealistic and the pricing of real estate involves a great deal of emotion.
One method for identifying where the market is bottoming, is to watch where actual transactions are occurring. For the past two years, in Steamboat Springs, we have not had enough sales activity to make reasonable assumptions. Finally, after a long wait, in many areas (single family homes, condos and town homes) we are getting transactions to analyze. Here is a link to a recent newsletter we sent, giving some indications here locally that indicate potential bottoms in property values: May 2010 Newsletter from The Paoli Group
In a surprise change to the downside, mortgage rates have actually gone down in the past few weeks. Mortgage Rates Drop . Locking in long term rates may be a great idea, considering the potential for exaggerated inflation over the long term. Combining great prices on incredible real estate with the low rates, this could be an interesting opportunity.
If you have any questions about the information provided above, contact Chris at 970.819.1432 or chris@mybrokers.com
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