2017 shaped up to be a fine year in Summit County real estate all the way around. The number of sales reached the highest point since 2007, and almost reaching 2007 volume, both in greater Summit County and Breckenridge specifically. We continue to follow the seasonal arc of a summer peak with pronounced but steady shoulder seasons, and we are seeing these sales numbers with an ever decreasing amount of available listings. Simple supply and demand tells us that in these circumstances prices will rise. And rise they did.
The impacts of tax reform: housing prices are expected to react negatively in highly taxed areas as the $10,000 mortgage interest deduction comes into play (maximum of $10k is allowable as a income tax deduction in the tax bill passed and signed in 2017). This could potentially push more buyers and demand into the relatively low tax regions of the Mountain West. As if the skiing, biking, weather, art, and lifestyle aren’t drivers enough. This will be an interesting story to watch as it develops.
The average Breckenridge single family home price eased up to $1,287,506 in 2017, from $1,123,027 in 2016. In square foot pricing, the jump was from $347.80 in 2016 to $404.20 in 2017. Both years saw the asking price to sale price ratio stay steady at 96 percent. According to Freddiemac.com, Treasury yields reacted to bond market sell-offs, and mortgages rates gently followed. The 30-year-fixed rate mortgage is averaging 3.99% as of January 10, 2017. Interest rates are expected to remain low while creeping up throughout the year.
Consistently modest growth, low inflation, low mortgage rates and strong job growth all indicate the potential for 2017 housing markets to be the best in a decade. As we analyze the national statistics, Summit County does fall in line with national trends of increased demand and falling stocks. As always, the owners and experts at Breckenridge Associates Real Estates are happy to guide you to your smartest investment choices. We are versed in the work and the play of living in the mountains. See you on the slopes!