Consumer confidence is at a sixteen year high per the latest Consumer Confidence Index. “Consumer confidence increased in August following a moderate improvement in July,” said Lynn Franco, director of Economic Indicators at The Conference Board in a statement. “Consumers’ more buoyant assessment of present-day conditions was the primary driver of the boost in confidence, with the Present Situation Index continuing to hover at a 16-year high.”
While strong consumer confidence numbers can signal increased willingness to borrow, which is a good indicator of a potential rise in real estate sales, it is important to remember some truths about buying, selling and holding your mountain home. Resort real estate tends to exist in a “snow globe” where demand generally remains high even in the worst of times for other markets, creating a bit of a cushion of safety for investors and owners. This risk reduction does come at a cost, as demand generally pushes prices upward, which can make the market difficult to enter. Revenue generation via robust vacation rental, long-term rental and short-term rental markets also helps to reduce risk. Mountain real estate sticker shock is nothing new, though here in Summit County our price per square foot average has trailed behind the nosebleed-inducing heights of both the Vail and Aspen markets, while offering a similar batch of amenities to recreators, foodies and imbibers, art lovers and mountain life enthusiasts.
Another bonus to having Aspen and Vail on our radar has been the opportunity to observe what happens in a community when service providers, teachers, police, and other pillars are priced out. There is a rumor that Aspen struggles to field a town council since there are so few full time residents living within town borders. Easily observable in many mountain valleys, and definitely not a rumor, is the traffic flowing in and out of town at the bookends of the workday. Summit County has reacted to those circumstances by creating attainable housing to help preserve the quality of life not just for locals, but also for all residents and visitors. For long-time Summit County locals, not only is this a point of pride, but something we believe contributes to the overall positive experience of living in our mountain communities. So while growing Consumer Confidence is an economic indicator we are always happy to see, we are always boosters of our community, and believers in the value of Summit County Real Estate.
If you’d like to join us, please contact any one of our Breckenridge Associates owner/brokers/community enthusiasts. We’re here to help.