Seems like an obvious answer, doesn’t it? However, many buyers (or ‘potential’ buyers) are waiting to see if prices drop further than they already have — and prices already have dropped anywhere from at least 20 percent to as much as 30 percent-plus under the ‘peak market pricing’ of 2007/2008. We are already in a buyer’s market! However, in today’s economy, it is quite normal that the fear of ‘overpaying’ is very real! So, will prices in Keystone and Summit County continue to drop? Probably… but not as much as they already have! Have we hit ‘bottom’ yet? Probably not … but it’s probably not far off either!
On one hand, there are still a number of listings in today’s market that aren’t priced ‘appropriately’ (to where they ‘should be’) and, if those sellers do truly wish to sell in today’s market, they will need to lower their expectations (and prices) or they should just take their property off the market and wait for the market to return to ‘where they need it to be.’ However, this might take at least four to five (or more) years but, the market will return. The question is not ‘if’ it will return, the question is ‘when’ it will return.
However, this is not true of all properties. There are many current listings that are both very nice properties and are extremely well-priced — even in today’s market. In other words, these properties have prices that have already been discounted an average of over 25 percent off of the previous market highs of just a few years ago — so why shouldn’t buyers act now— and take advantage of the great selection and prices currently available — as long as a buyer is not thinking ‘short term.’ As long as a buyer in today’s market has ‘longterm’ goals in mind and intends to hold the property for at least five (if not 10) years, now is a great time to buy.
The affordability of owning a resort property in Keystone or Summit County has improved dramatically in a short period of time, being commensurate with prices of 2002-2006! However, if a buyer is still ‘waiting for the bottom,’ they should also consider that this is the first time in many years that the number of properties being listed on a weekly basis is less than the number of properties being sold on a weekly basis. Therefore, the inventory is actually rather low (at approx 7-8 percent of those built) and is getting lower. Consequently, there is less pressure on individual sellers to necessarily reduce their prices ‘that much’ further than they already are. Although this may not say ‘we’re at the bottom’ now, it is a fairly strong indicator that we could be there shortly! It’s already happening in places like Florida, Nevada and California … and I understand the Denver market is once again quite active as well. In fact, one buyer from Florida told me that although they got a great price, they missed out on much better selection and availability of properties recently by trying to ‘time the bottom.’
Timing the bottom is almost impossible and the only way one knows where the bottom truly is (for sure) is after it’s passed. However, one thing is for sure: today is a buyer’s market. Today, a buyer can call the shots. If the market ‘turns’ (reaches bottom) tomorrow, a buyer may lose that advantage … and maybe the resort home of their dreams.
So maybe we’re not at the bottom yet but waiting until we get there could ‘cost’ a buyer — either in paying more or not getting the property that best fits their needs. Again, it’s ‘for sure’ that there is a great selection of great properties right now and, with interest rates currently at record lows (around 4 percent for a 30-year fixed), why shouldn’t a buyer take advantage of today’s market now?
If you’ve been even thinking about a resort property of your very own ‘piece of paradise,’ why not contact The Walsh Group (toll free @ (800) 594-1010, email us @
email@example.com or just find us on the web at:
www.KeystoneColoradoProperties.com) to see if there’s a resort property that fits you and your family’s needs, right now.