How's the Market? This is everyone's favorite question for Realtors and it somehow suggests that there is just one answer.  The truth is that any market has opportunities and if it is bad for sellers, it will be good for buyers.

 What anyone who follows our market knows is that prices have dropped. It is impossible to put one number to quantify exactly how much. Different sectors of a market perform differently. However, by taking a couple of examples, we can quickly get an overall sense.

 My own house in Glenwood Springs was appraised about 6 months ago at $695,000. A couple of weeks ago, in order to take advantage of the low interest rates, we had it appraised again for a refinance. It was appraised at $595,000. That is a 15% drop.

 An example in the Castle Valley subdivision of New Castle shows a similar trend. The highest sale price for one of the town homes was $335,000 at the beginning of 2008. Currently a similar town home is likely to sell for around $295,000, or a 12% drop.

 This is great news for buyers and not great for sellers. As for those who have no plans to move in the next couple of years, it makes hardly a jot of difference!

 In purchasing a home it is the combination of the sale price and the interest rate on a loan that give us the true cost for the buyer. Just a few months ago FHA rates were at 7%. Recently they have dropped to 5%. Using the town home in New Castle provides some illuminating numbers.

 If the purchaser who paid $335,000 got a 7% loan, their monthly payment would be around $2,500. If someone were to purchase the same town home now for $295,000 at a 5% rate, their payment would be more like $1,800 - a $700 difference!

 The last factor for first time home buyers to consider is the cost of renting v. owning. This town home currently rents for around $1,600. With a purchase payment of $1,800, about $350 a month goes to the principal, not to the landlord! Add to this the tax deduction that homeowners receive - in this example it could be worth around $300 a month (check with your accountant on this one).

 If interest rates climb back to 7% (still a very reasonable rate compared to the 15% that homebuyers were paying in the 80s!), the payment would increase by around $360 a month.

 Storms pass and this may be the perfect time to make hay while it is still raining!

(Julian Hardaker is a Realtor with RE/MAX Mountain West in Carbondale, CO and serves on the board of the Glenwood Springs Association of Realtors. He can be reached at (970) 309-5169 or julianhardaker@remax.net)