Teresa’s Take On Things

Hello everybody,

In the world of real estate here in Breckenridge the summer proved to be better than expected. We had a surge of activity in the spring and then things got quieter in the summer. I understand this was a nation-wide lull. The beginning of fall, things picked up again and we have seen buyers coming into town. Most of our buyers have been cash and relatively quick closings. I was somewhat surprised to see the cash purchases, given the incredibly low interest rates of around 4% (or even lower) for those that qualify. To me, this is an indicator that people have been waiting for the great deals out there and are starting to come forward. 😀

Just to share our experiences with you. We recently sold a beautiful home that was originally priced at $3,999,000 and was incrementally reduced to $2,799,000. The home just closed for $2,050,000. (You can see it on our website at www.themoens.com — it is the castle of Breckenridge). The buyers were thrilled for us to have sold their home in this market. Was the home worth more? I would say yes, but a home is only worth the price that the market will bear. This is our difficulty in pricing lately. In 2006 and 2007, homes were selling for about 97% of asking price. When people ask me these days about asking prices vs. selling, it is a more involved answer. How many times has the seller reduced the price? What are the comparable sales in the area? Was it cash? It has certainly become a more competitive market and more complicated. That is where we come in. Our job is to figure out what the best price is for you to pay for your mountain property. So, give us a call and we can talk more about how to do this. In the meantime, life is good here!!

It’s a beautiful day in Breckenridge,

Teresa

PS: Oh by the way – we have a new video introducing ourselves – check it out!

Hi friends, clients and family,

People ask me what I think the market will do, or is this the bottom, or what about the lenders etc………………….

So is your crystal ball fuzzy? Mine is a little.

Here is what I think……….

The lending market is at the bottom I believe. When was the last time you saw interest rates at 4.25%? After the terrible time in 2008 and 2009, the lenders are starting to loosen up a little and feel more comfortable about lending money and wanting the business. Keep in mind the interest rates on a second home or investment property are about a quarter point higher.

I am also seeing more people pay cash for their vacation or rental properties. This is great for sellers as this is usually a quick closing and they feel more secure when there is not a loan involved or an appraisal. This is great for the buyers because “money still talks!”

There is a flood of inventory so sellers are having to lower their prices. Supply and demand!!!! This is a buyer’s market so if you don’t have to sell, my advice would be to sit on your property until the market is more in your favor. Timing is everything after all!

Overall, the market is improving thank goodness. The sales in Breckenridge alone are up 42% over last year at this time. Don’t just take my word for it! See for yourself.

So, bottom line is, we are not going anywhere, Americans are extremely resilient and I believe there is pent up demand and people want to be here in the mountains enjoying life again. I know I do. 😀

See you next time and remember: if you know of anybody that is interested in real estate in Breckenridge, we are Your Mountain Realtors!

Oh by the way – we have a new video introducing ourselves – check it out!

Teresa

Hey everybody,

Teresa here!

So I guess you are wondering what is going on these days in Breckenridge? Or maybe you have speculations about the market? Well, here is the scoop. The number of residential sales are up 47% this year so far. Yahooo! Sounds good doesn’t it? You betcha! Bearing in mind that it was sooooooo dead last year, 47% on nothing is well……………….we are very excited.

It feels like there is pent-up demand. People want to get in on the best deals they can because they are figuring the market is repairing itself and they don’t want to miss out. This does seem to be the case. What you have to know is that the sales that are happening are after our poor sellers have reduced their prices many times to accommodate a lower market. There is also quite a bit of inventory out there to choose from and the buyers know this.

Contrary to popular belief, we are not having a lot of foreclosures but we do have our share. Remember, this is a resort market so many of our owners own multiple properties and often have the luxury of not needing to sell until the market goes up.

We are seeing some small real estate companies closing down and only the big dogs are able to hang in there with deep pockets. RE/MAX luckily is one of them and we are doing well. If not I would be waiting tables right now! :-[ I think since Roger and I have been here for so many years (13 in May) we have a good client base that is coming back to us to buy right now. To all of you we are grateful.

So that is the quick update, just to let you know we are still here, life is good in the mountains, fresh powder, lots of tourists and friendly people. As you know, Roger will be giving you the charts and statistics about the market. In fact, I married an engineer and that has come in so handy for our real estate business. Ha!

See you next time and remember: if you know of anybody that is interested in real estate in Breckenridge, we are Your Mountain Realtors!

Teresa