Is there going to be a housing bubble in Breckenridge?
A housing bubble is a temporary event, but it can last for years. Usually, it’s driven by something outside the norm such as manipulated demand, speculation, unusually high levels of investment, excess liquidity, deregulated real estate financing market, or extreme forms of mortgage-based derivative products—all of which can cause home prices to become unsustainable. It leads to an increase in demand versus supply.
If we look at who is buying the properties up here in the mountains none of these apply. We are not seeing a manipulated demand, or deregulated real estate financing for example. I cannot of course say how long this type of market will last but so far we are seeing no signs of stopping.
Covid of course started the ball rolling with people fleeing the cities but also I think Covid changed how Americans do business in many ways. The one that affects us the most is the fact that so many people can now work at home given the option and of course technology is making this possible as well.