August Market Update

It is a beautiful day in Summit County, 75 degrees and not a cloud in the sky. A perfect fall day. This is my favorite time of the year, if it doesn't snow.

As an information source on the Summit County Market I wanted to pass along a few thought on our market.

The national market has affected us since last August, when the mortgage "crisis" first became apparent. As our summer comes to an end, inventory is up 50% and volume, the number of sales are down, 30% in July, 40% in August compared to last year. Listing prices are slowly adjusting down. You may be right on target for a mid-winter bargain, maybe even next spring. We back to the same question. Have we hit the bottom of the cycle? A student of history would tell us that prices in Summit County have never flat-lined for longer than 18 months. Historically, we should come back strong next spring with a 5% increase in prices. This thought is based on the simple fact that we are substantially less expensive than Aspen, Vail, Steamboat, Crested Butte, Telluride and Winterpark. On the other hand, I still feel we are still over priced by as much as10%-15% in some areas. Breckenridge condos maybe 20% over value, if you look at the crazy growth from 2003 thru 2007. Which value is correct remains to be seen. Next spring will be interesting.

Have we hit the bottom of the cycle? I don't know. Last night financial news foretold another 30% decrease in tech stocks. Real Estate may not be a bad place to put your money even if we haven't hit the bottom yet. My advice as always is to buy within your budget and plan to hold the property at least 3 years. Buy a great property, not a great investment! The investment will follow if we buy a great property.

Always a pleasure, thank you.

Sincerely,
Chris Johnson