By Lawrence “Skip” Moss
Published on: Jun 29, 2013 @ 0:12
In addition to the following article titled “Statewide real estate markets improving” that appeared this week in the Vail Daily on June 24, 2013, by Randy Warwick, another conversation we had with an EagleVail For Sale/Rent by Owner and his experience in selling/renting his property is worth noting. The subject property is located directly on busy US Highway 6, the main road connecting Avon to EagleVail and Minturn and once the only way east and west before Interstate 70. The homeowner/rental owner decided to give it a try to sell it himself and while the phone didn’t ring off the hook, one party interested in renting the home made a cash offer within 3% of listing asking price.
What is interesting and becoming more common is qualified renters are more likely to seriously consider buying or buying with an option to purchase now that they have experienced first hand the tightening rental market and lower inventory of available homes. At the moment the perception is prices have stabilized in the desirable locations, interest rates impacting the cost of ownership are more likely to rise steadily in the near term and nobody wants to pay more than they need to get a decent place to live.
We believe the pent up demand for housing, attractive pricing, low cost of financing are contributing to price stabilization and/or appreciation we are seeing in the marketplace now. Will the trend continue for another 12, 18 or 24 months adding annualized appreciation of 2 to 5% or even better, only time will tell.
If you are considering home ownership or a rental in the Eagle River/Vail Valley, please contact us today to learn how we will help you identify the right property, at the right price and transacting at the right time to maximize your purchase power.
Statewide real estate markets improving
By Randy Wyrick, Vail Daily
Improvements in the local real estate market reflect state trends.
The Colorado Division of Housing said foreclosures dove 50 percent in May, while home loan payoffs surged.
At the same time, the Vail Board of Realtors May monthly indicators report shows a tightening local market. The number of new
listings coming to market is down 13 percent from last year, and active inventory is down over 34 percent from last year.
“While this report provides great insight into Eagle County as a whole, each neighborhood has its own unique characteristics and
trends which are best navigated through the use of a local Realtor,” said Julie Retzlaff who chairs the Vail Board of Realtors.
The time that a local property spent on the market dropped 3 percent to 159 days, down from 185 days in 2011, the Vail Board of
Realtors May report said.
Retzlaff said concerns about interest rates are popping up again, after Fed chief Ben Bernanke told Congress the Federal Reserve
Bank is considering tapering the $85 billion it’s spending each month to buy mortgage-backed securities and other debt.
Payoffs are up
The number of home loans paid off in Colorado was up 31.4 percent from the first quarter of 2012 to the first quarter of 2013, the
Colorado Division of Housing reported.Public trustees in Colorado released a total of 98,321 deeds of trust during the first quarter of 2013, the highest quarterly total
recorded in any quarter since the Division began collecting quarterly totals in 2008. That’s up from 74,809 deeds released during the
first quarter of last year.
Eagle County saw the smallest increase of the 21 Colorado counties surveyed at 3.7 percent. Jefferson County showed the next
smallest increase at 12.5 percent.
A release of a deed of trust occurs when a real estate loan is paid off, whether it be through refinance, sale of property or because the
owner has made the final payment on the loan, McMaken said. Increases in release activity occur as refinance and home-sale activity
increases, and rising release totals typically indicate increases in the demand for home loans and real estate.
“From early 2011 to late 2012, the average 30-year fixed mortgage rate fell for seven quarters in a row,” McMaken said. “We’re not
surprised to see refinancing and purchase activity increase sharply as a result.”
Foreclosures are down
In Colorado’s metro counties, foreclosure filings were down 50.5 percent during May 2013, falling to the lowest level recorded during
May in any year since the Division of Housing began collecting monthly totals in 2007.
Foreclosure auction sales in metro areas were down 25.4 percent in May this year compared to May of last year, falling from 965 to
720. During the same period, foreclosure filings dropped from 2,249 to 1,113.
For the first five months of the year combined, from January through May, foreclosure filings were down 43.4 percent in 2013 when
compared to the same period last year. Foreclosure auction sales were down 29.4 percent across the same period.
“And a downward trend is likely to continue as long as employment is stable and we continue to see low mortgage rates,” said Ryan
McMaken, an economist for the Colorado Division of Housing.
Foreclosure filings are the initial filing that begins the foreclosure process, and foreclosure auction sales totals are the total number of
foreclosures that have been sold at auction, ending the foreclosure process.