Market Insights: 2012 made Realtors very optimistic
January 5, 2013
In addition to being famous for my brutal honesty, I am also well known for reporting the realities of the market to allow you to make your own conclusions on where the real estate market is heading. The following information comes from my analysis of data provided by the Summit Association of Realtors, and some ‘gut feelings.’ In a previous life, I owned a market research firm which taught me the importance of that ‘gut feeling.’
I speak with dozens and dozens of my colleagues, other Summit County Realtors, on a frequent basis. Here is a quick summary of what they are saying:• 2012, for many, was their best year since 2008.• It is great to see extremely expensive homes selling again.• We can expect to see an increase of new custom homes being built in 2013.• Obtaining loans was not much of a hurdle in 2012.• There is a positive vibe in the marketplace.• Rather than sitting on the fence, buyers are going under contract.
My clients are cautiously optimistic. The buyers, overall, are telling me they feel it is a good time to be buying. Over the last few months, I have spoken with many buyers who have been sitting on the sidelines waiting for years. They are telling me it’s time to get serious about buying. On the flip side of the coin, sellers seem ready to sell. Those who have been thinking they would be able to sell for the same prices as in 2007/08 have come to realize that is not going to happen in 2013. They have become comfortable with the fact that prices have dropped significantly since the peak. Overall, we have had some prices drop 20-30 percent since the real estate bubble burst.Yes, the above comments from clients make me smile. Every market needs willing buyers and willing sellers. That’s what we have right now in Summit County.
Being that I am based in Breckenridge, the data below is specific to Breckenridge, yet reflects the county overall:• Sales volume was up 7 percent in 2012 over 2011.• The number of properties on the market the last week of 2012 was down 14 percent compared to 2011.• Prices have been more or less the same for all of 2012.And personally, thank you to my loyal client base. I represented the sale of nearly twice as many properties in 2012 compared to 2011. If the above trends continue, it will be very good for the market in 2013.
With an increase in custom-home construction comes an increasing in construction prices. All over the county, we are seeing top-quality homes selling at below-replacement costs. One darn good example is the home shown in these photos. This beautifully constructed property located at 254 Lake Edge Drive, right on the golf course in Breckenridge, could not be constructed today for the asking price of $2,999,999.Make it a vibrant 2013. Love life, DWJFor more information contact Daniel Webster Johnson at (970) 393-3300 or drop him a line at Daniel@YourMountainBroker.com. He is a very active, full-time Realtor in Breckenridge, who has earned the national Quality Service Certified Platinum award, recognition of 100 percent client satisfaction. He is one of the team at Resort Brokers Real Estate located at 100 S. Main St., Breckenridge.