Saturday, September 18, 2010
Looking for a silver lining before deciding to move forward with your home purchase? Last week, the real estate market news reporters across the country were once again hyping on that black cloud over our head, and taking a very broad brush to paint their picture of our struggle to recover from the housing crisis.
And the National Association of Realtor’s (NAR) announced that homes sales across our country dropped 27% in July compared to the same measures from July 2009. Bad news makes news, as expected.
So where is that silver lining? As John Soule said (or did he? See this interesting discussion of the quote here) in 1851 “Go West, young man”. Real estate markets vary widely across the country, and the buyer cannot simply read the headlines to determine the healh of the local markets out West.
The median price in the West was $224,800, an increase from $221,800 the month before and up 3.3 percent from the same time in 2009 according to NAR. If you have been watching prices drop for a few years now, an increase in home prices out West should raise one eyebrow. Combine that with interest rates at the lowest they have been since about 1971, and both eyebrows should be raised!
Additionaly, pending home sales also indicate momentum moving forward:
Following a sharp drop in the months immediately after expiration of the home buyer tax credit, pending home sales have modestly risen
Low interest rates, higher prices, sales picking up? Hmmm…
Indeed, there does seem to be some good news hidden amongst all the dark clouds breathlessly reported each day by the media. If you are a buyer and reading this now, you may want to consider emulating our early settlers over a century ago and start a new life in beautiful Steamboat Springs!
Prices are down 30-40% for the most part in Steamboat Springs, interest rates are at record lows and inventories in select developments are decreasing.
If you have been here, fell in love, and would really like to start a new life in Steamboat Springs, get your Steamboat market report today.
Dean Laird, Broker/Owner
Colorado Group Realty