Market Insights: Welcome to the new normal
The title of this article is a direct quote from Realtor® Magazine. As a Realtor®, I am one of over 1 Million people who read this quote on the front cover of the current issue of our industry magazine.
The subtitle of the article states, “2011 is the first full year of what many economists see as an entrenched period of slow economic growth and high unemployment.” Is this accurate? I have no idea, as I never attempt to predict the future; I leave that to the economists.
As a real estate broker in Breckenridge involved in residential sales on a daily basis, I can tell you, for certain, property is selling. I am very pleased with the number of transactions so far in 2011. My sense is that both buyers and sellers are comfortable with the prices right now. They are not waiting for the market to shift up or down.
This next statement is based on personal experience only, not on any facts or data. Buyers and sellers are reaching agreements on price more easily and quickly than any time in the past two years. Why? Buyers are showing a level of comfort and confidence with the market. The fear that prices might drop tons seems to have diminished. On the other side, the sellers have accepted that prices will not be climbing back to peak 2008 levels any time soon. Both parties to the transactions, in essence, are saying, “We accept the current market is the new normal”.
Please hear me loud and clear. I am not saying that prices are increasing. How could I say that when in mid-December 2010, the developer of Waterhouse on Main in Breckenridge dropped prices 40 percent? Out of 25 condos ‘on sale’, there are two still available. A price drop of this magnitude implemented by East West Partners, a developer with a very well-established track record in resorts across the U.S.A. over the past three decades, says to me, “Welcome to the new normal”.
In each market insights article I illustrate the point with an example. The seller of this townhome located on the Raven Golf Course understands this market. Why? It was built in ’97, has three bedrooms and three bathrooms, the yard has an Aspen tree grove for privacy, it is in superb condition and it is priced at $365,000.
Daniel Webster Johnson leads Team Your Mountain Broker and is a broker associate at Resort
Brokers Real Estate. He can be reached at (970) 393-3300 or daniel@YourMountainBroker.com
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