Uptrends in Summit County Market

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Apr 20, 2004

Our real estate market has been very brisk, in spite of the economy. In May, 2003, it literally exploded, and growing inventory in Summit County was significantly depleted, leaving fewer choices for current buyers.  Normally, we experience a slow period during the first quarter of the year, but 2004 belies that experience.  I'm hearing from many other Realtors that they are having similar experience. Though I don't presume to know all the reasons why, here are a few.

People have continued the trend of moving their investments out of the stock market and into real estate.

Low interest rates have fueled the housing market (you might note that Denver is well ahead of last year).

Many economic indicators are uptrending.  There continue to be buyers who come from other, more depressed, markets, who really believe it is a buyer's market. Many, however, have been faced with competing offers on the same property, and a number of our buyers have lost properties they thought they could buy.  So, there is a rare deal, just as there is in a strong market. But, the average selling price is still about 98.5% of the asking price.

Every segment of our market is experiencing quicker sales, from basic low-end condos to sales over $1 million.  As recently as a year ago, you could buy condos in Keystone, for example, at roughly 15% less than the original price paid 3-5 years earlier.  However, since over half that inventory sold last year, sellers are now beginning to experience profits on their sales. 

It's still a great time to buy.  As with the stock market, it's never wise to try to specifically identify the bottom or top of the market to trigger your sale or purchase decision.  But, it is key to buy early in an uptrend.  That time truly is now.