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Are You Waiting for the Right Property, the Right Price or Both?

Posted by Breckenridge Associates Real Estate on Tuesday, June 9th, 2009 at 10:20am.

Over the past 10 years, real estate prices have escalated rapidly in Breckenridge and Summit County and buyers and sellers have felt lucky to be part of the ride. Returns on real estate have been at an all time high. We've often have heard people say, "I'm kicking myself for not buying 10 years ago."

Ten years ago the average sales price for housing was $250,000 in Summit County and doubled by the end of 2008 to an average price of $500,000. The average return in Breckenridge for the same period was even higher. Buyers "got in" at the right time and produced great returns on their investments. When it came time to sell, few concessions were made. However, for buyers this meant there were few "deals" to be had. It was a seller’s market. There was limited supply of available housing and buyers often settled on a less desirable location with fewer amenities just to “get in” to the local market. They hoped for the same returns their neighbors were seeing.

Today, the tables have turned and we are experiencing a “strong buyer’s market”. This means that the inventory of condos, homes, townhomes and vacant land is higher than it was. In some cases the number of units available have doubled from 2007. An abundance of sellers means they must now compete (i.e. dropping their asking prices) to get the attention of bona-fide buyers. Buyers with approved financing are able to negotiate a price often times much lower than what the seller is asking, because of the competition. Another phenomenon we are witnessing is that a few of the “keeper” properties – those we thought we would never see on the market, or have never been offered before – are now available (i.e. right by the river, top floor, southwest corner unit, new custom homes by stretched builders below construction cost). Now is the time to buy.

Just as is true in the Stock Market, “timing” the market has never proved fruitful. If you’re waiting for prices to decline further, you may miss out on a shot at a great fixed rate loan. Interest rates are ridiculously low and will almost certainly increase soon. Don’t miss your chance to lock in a fixed rate loan in the 5% range. This is truly a once-in-a-lifetime opportunity. Today’s buyers will undoubtedly look back 10 years from now and say “Wow, glad I bought back in 2009 when…”

View 2007, 2008 and 2009 Inventory Graphs for Summit County on our website http://www.breckenridgeassociates.com/news_items/view/37?awesm=a2a.me_EII&utm_campaign=addtoany&utm_content=a2a&utm_medium=a2a.me-twitter&utm_source=twitter.com

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