Breckenridge and Summit County Real Estate

  • About
  • Reviews
  • Blog
  • Search MLS
  • Real Estate
    • Summit County
      • Breckenridge
      • Copper Mountain
      • Dillon
        • Uptown 240 in Dillon, Colorado
      • Frisco
      • Keystone
      • Silverthorne
    • Buyers
    • Sellers
  • Contact
  • About
  • Reviews
  • Blog
  • Search MLS
  • Real Estate
    • Summit County
      • Breckenridge
      • Copper Mountain
      • Dillon
        • Uptown 240 in Dillon, Colorado
      • Frisco
      • Keystone
      • Silverthorne
    • Buyers
    • Sellers
  • Contact
You are here: Home / Real Estate and Property / 7 Reasons Why Now is the The Time To Buy

7 Reasons Why Now is the The Time To Buy

July 3, 2022 By Stacy Sanchez Leave a Comment

7 Reasons Why Now is the The Time To Buy

INTRODUCTION

If you’ve found this blog post, chances are you saw an ad or have been researching homes and properties in the mountains of Summit County, Colorado. We’ve already compiled a list of neighborhoods, a comprehensive list of STR (Short Term Rental) regulations for the Town of Breckenridge as well as other resources, including a video that shows the passion of this website’s featured broker, Dina Sanchez.

Please read the following information as a summary of ideas and then contact us with any questions or comments. Or, feel free to skip this article and call or email right away to get started on your search for the dream home your family has always wanted. Click here for contact information.

#1 – MORE INVENTORY

Increased options for buyers, simply put, there’s more to choose from. The shift is bouncing back from historic lows to something closer to normal.

#2 – LESS COMPETITION

Decreased number of buyers means less likelihood of a bidding war.

#3 – BETTER NEGOTIATIONS

Buyers can come in with a stronger negotiation strategy. Cash is still king, but still make a plan to come in with a strong offer with a substantial earnest money deposit, appraisal gap contingency and less potential objections.

#4 – PROTECTION AGAINST INFLATION

Over the last year, the market has seen inflation and a change in the buying power of the dollar. While these changes can affect the stock market for the worse, real estate weathers the inflation storm. Many times, inflation can benefit property owners. Rent and real estate prices tend to rise with inflation. [Source]

#5 – BUILD EQUITY NOW

Start accruing equity through appreciation, approximately 10-15% annually. See Values section below.

#6 – MAKE A PLAN TO REFINANCE

Mortgage pros say to get in now and buy your forever home, but it won’t be your forever mortgage, as you can make a plan to refinance when rates fall again. Mortgage forecasting states that the rates will decrease in time, and therefore again increasing competition and returning to the market to its previous state (low inventory, extremely competitive sellers market, etc.) [See video below or click here]

#7 – THE MARKET IS NOT GOING TO CRASH

While some think that the market is going to crash and prices will drop significantly, that may not happen. Yes, you will see price drops and homes will sit longer on the market, but that does not constitute a crash. Some believe our mountain markets are a bit more recession-proof and others look to the following items to consider: 1)The recent growth in home prices is because of demographics and low inventory and 2) Credit risks are low because underwriting and lending standards are sound. [Source]

Mortgage Pro Opinion – Josh Smith

We met Josh as a client and have now come to work with Josh as a colleague and friend. He splits his time between Texas and Colorado and is licensed in both states and can help shed some light on the current market with the following video. Please let us know if we can help patch you through to ask Josh more questions. He’s one of a few mortgage pros we recommend potential buyers consider when working on the financial part of the equation when purchasing a Colorado home near Breckenridge.

FOR DISCUSSION AND FURTHER CONSIDERATION

Lack of Inventory

Q. What caused the lack of housing, was it the Pandemic?

A. The pandemic didn’t produce this imbalance, but it did exacerbate it. Supply was temporarily hindered by a coronavirus-related pause in construction and by supply-chain-related shortages of building materials. And demand for spacious suburban houses was pushed upward as many Americans, especially remote workers, turned their attention away from downtown urban areas. [Source]

Inflation and the overall Global Market Influence

Q. What’s causing the decline in the markets this year?

In short, inflation, interest rate increases, the war in Ukraine, higher oil prices, supply chain issues, and lower corporate earnings have all put downward pressure on stock prices. These factors, in addition to the collapse of a stablecoin called Terra and withdrawal freezes from crypto firm Celsius, have contributed to large declines in crypto as well.

Home Values

“I just don’t see the the kind of mortgage defaults and distressed sales that would be necessary for big declines in housing values. That’s when you get crashes, when you have lots of foreclosures and a lot of distressed sales,” Zandi says. “That’s just not going to happen.” [Source]

“I don’t think you’re going to see homes go down in value really. The truth is, real estate always does pretty well during a recession. What will change, however, is the anxiety of buyers.” (Orman predicted house sellers would no longer receive dozens of offers above their asking prices, and warned buyers would face pricier mortgages and higher property taxes, insurance premiums, and maintenance costs.) [Source]

Fears of a Recession – Why it May or May Not Happen

Not only does JPMorgan not expect an economic recession to materialize anytime soon, but it expects a reacceleration in global economic growth, the note said.

“While the probability of recession increased meaningfully, we do not see it as a base case over the next 12 months. In fact, we see global growth accelerating from 1.3% in the first half of this year to 3.1% in the second half,” JPMorgan said.

It said much of that growth would be driven by China, whose economy could grow by as much as 7.5% in the second half of the year, as long as lockdowns don’t resume. That strong growth would trickle down to other emerging-market economies, the bank said. [Source]

DISCLAIMER

* All statements and discussion points are subject to the author’s opinion and links to sources are provided whenever possible. Readers are advised to conduct their own research to be as informed as possible.

Filed Under: Buying a Home, Real Estate and Property Tagged With: Breckenridge, Buying Property, Colorado, For Sale, Homes, Investment, MLS, Property, Real Estate, Realtor, Summit County

You May Also Like

How to Search for a Breckenridge Short Term Rental Investment Property
How to Search for a Breckenridge Short Term Rental Investment Property
Mountain Habitat Breckenridge Real Estate - Cabo Da Roca
Adventures in Portugal
Keystone Condo For Sale - Oro Grande Lodge 312
Keystone, Colorado Condo For Sale – Oro Grande Lodge #312

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Facebook
  • Instagram
  • Houzz

970-390-2343

Copyright © 2022 — Mountain Habitat // Breckenridge Real Estate and Property Services. Dina Sanchez - Associate Broker, Realtor. • All rights reserved. Privacy Policy
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT