What is hot in Summit County Real Estate? Everything, but some sectors are burning especially bright. In May, single family homes in both Breckenridge and greater Summit County gently outpaced 2017 numbers. The multi-year trend of fewer listings following a seasonal arc with a building towards high summer peak continues.
We are seeing about a 20 percent decline in available properties in Breckenridge from this point in 2017, and a 15 percent reduction in available listings for the greater Summit County market. The decline in listings outpaces the decline in closed sales. Despite the smaller inventory, buyers are buying and sales are closing. We expect another record summer as community investments in arts and open space have created an even richer year-round high country experience that more and more buyers and travelers are recognizing.
After rising to the highest point in four years in April, mortgage rates slightly softened in the beginning of May. They have started to climb back up as of last week, and are about three-quarters of a point higher than a year ago. The Fed meets again in June and all sources expect a .25% rate hike to come out of that meeting, though there are some complicated financial maneuvers the Fed is expected to make that signal an end to the recent trend of rate hikes. It’s all a bit much for this casual observer to explain, but what we should know is that while rates have risen over the last year, a mortgage remains a major wealth-building tool and rates remain at near historic lows. Yes, there was cheaper money available a year ago, but I wouldn’t let the small difference small rate hikes create in monthly payment let us lose sight of the long-term gain potential. Despite being a writer who covers real estate market trends, I, after a year of urging readers to lock rates and to refinance before the fed began this run of rate hikes- finally completed a refi of my own home. Would it have been a better deal a year ago? Yes? Is my home still a major appreciating asset? Yes. My message: don’t be discouraged. Not by marginal interest rate hikes, declining availability or rising prices. Long-term (150 years) housing returns have at least matched equity returns with lower volatility, and offer other income opportunities like rentals.
For most, a home will be the single biggest investment we make in our lives. The experts at Breckenridge Associates Real Estate would be honored to be your trusted partner in your real estate journey.