The Market May Be Shifting In Some Areas, But Summit County Remains Strong
One thing we always advise our clients is to beware of national news stories when it comes to the housing market. While many parts of the country are beginning to see the real estate market cool down, that is not the case in Summit County and our beautiful small mountain towns.
So, what can we expect to see in the Summit County real estate market, and what makes it different from other areas? Let’s take a look.
What Is Causing A Shift In The Real Estate Market?
Homebuyers who require financing have been hit hard by the increase in mortgage rates today, as well as fears of a recession. Many areas around the country, and even in Colorado, are seeing an increase in inventory driven by a decrease in homebuyers who simply cannot afford to purchase a home in today’s market.
Barrons.com outlines some of the other fears that are prompting many homebuyers to put off their home search. Increased mortgage rates, property taxes, and home values are among those concerns. With fewer home buyers, inventory is sitting longer, and sellers are starting to drop their asking prices in an attempt to attract a buyer.
Why Is The Summit County Market Different?
As we discussed in this recent blog post, about 40% of homebuyers in Summit County paid cash for their home purchases in 2021. Cash buyers are not impacted by the increase in mortgage rates today, which is great for our real estate market. Buyers here do not have concerns over what increased mortgage rates today will do their monthly budgets.
Summit Daily reports that the number of transactions in Summit County has decreased, but values are still increasing. Sellers still have the upper hand in negotiations since inventory is still so low and buyer demand is still high. Plus, home construction on vacant lots is severely backed up, so many homebuyers would rather purchase an existing home rather than wait a few years for their mountain home to be built.
What’s Next For The Summit County Real Estate Market?
In small mountain towns, especially those that attract vacation homeowners, the real estate market doesn’t always follow the rest of the country’s trends. While we do think home values will dip a little bit closer to the end of the year, the market will be more sustainable.
If you are on the fence about selling your home, you may want to do so sooner than later in order to have a quick home sale while prices are still at record highs.
You can contact us if you’d like an up-to-date market analysis of your home. If you’re ready to sell, we will put together a personalized strategy to sell your home quickly in case the market begins to shift even more. Give us a call, we’d love to help!