Market Insights: 4 reasons buyers are returning
Ryan Summerlin February 23, 2013
Over the past six months, the number of inquires from buyers has been on the increase. Of course this is good news for both buyers and sellers. As a Realtor, one of the most important actions I can take is to listen. I was told we have two ears and one mouth for a reason. This is a summary of what the buyers are telling me.
Especially the baby boomers feel like they are running out of time. For the past four or five years, they have been waiting and watching the market from afar as prices declined. This quote from clients in Chicago sums it up, “We are tired of postponing buying our dream retirement home. If we keep waiting, we will end up too old to enjoy it.”Yes, the wave of baby boomers hitting retirement is here. At 57, I speak from experience when I say we are an impatience bunch. We are determined to get what we want and we have worked very hard to get it. For us, the waiting is over.
From the 38-year-old, first-home buyer to the 62-year-old retirement purchaser, I hear the statement above. There is only one thing that varies. The majority tells me rates will never be this low again and they are climbing. A minority believes rates will stay at historic lows for a couple more years. Either way, money is cheap.And everyone I work with gets loans. The buyers in Summit County seem to be very qualified and able to provide the 3.5 tons of paperwork the lenders request these days.
Please re-read the statement above. The emphasis is on “low enough.” In other words, the buyers are not telling me prices have hit rock bottom. Nor do they seem to care. What they believe is prices are not likely to decline much more. They plan to hold the property for years, so a bit more decline in prices does not worry them.This is a gigantic shift in buyer thinking. Until recently, the attitude has been much more, “I’ll sit on the sidelines to see what happens.”
The value is obvious it two ways:1. The direct comparison with what properties sold for at the peak of the market.2. As compared to other major ski resort towns right across the country.An example of No. 1 above is illustrated in these photos. This two-bedroom Breckenridge condo is on the market for $204,950. Based on the peak sales in 2008, this condo would have sold back then for $325,000! Yes, there is great value to be had in Summit County real estate right now.I hear the second point above often. Buyers tell me that for the price of a condo near the ski slopes in Vail, they can buy a larger single-family home here right on the slopes. There seems to be a shift taking place with buyers. Those who used to buy in Vail because it is “Vail” are now coming to Breckenridge because value is more important than status.See you next week. Love life, DanielReach Daniel Webster Johnson at (970) 393-3300 or him 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.