The old adage “There’s no time like the present” might not first come to mind when looking at today’s Steamboat Springs housing market. But these homespun words of wisdom are quite appropriate when a closer look is given. I would like to point out these favorable factors that can contribute to making this, for many consumers, a most opportune time to buy a home:
• Inventory is up. When the market is hot, new listings can’t replenish the supply of homes fast enough, and that works in the sellers’ favor. In today’s market, the opposite is true, providing more choices for buyers.
• Sellers are motivated. Homes that in a hot market would have been snapped up in days are now lingering unsold for weeks, even months. Factor in bank-owned properties due to the recent and unfortunate spike in foreclosures and buyers find themselves in an advantageous negotiating position they haven’t enjoyed for years.
• Interest rates are down. Recent cuts in the prime rate by the Federal Reserve have sparked drops in interest rates, which nearing the end of March are below 5 percent for a 30-year fixed-rate mortgage. While banks have tightened lending requirements in the wake of increased loan defaults, homebuyers with few credit problems qualifying to purchase a home they can afford should still have little trouble securing favorable financing terms.
What’s more, a market climate like this especially favors buyers who don’t need to sell an existing property before their purchase, buyers like first-timers and those looking for a second home. This tilts the scale even more towards many buyers.
I would also like to add more specific reasons why I feel the next few months will be the best time to buy Steamboat Springs real estate:
• Sellers typically stick closer to their price right before ski season because they know they will be able to receive the lion’s share of rental income within the next several months, and they will also be able to use it during ski season.
• Along with that, after just receiving the rental income, spring is the time of the year they are most motivated to sell because they have just captured the ski season revenue and are now looking at several months of carrying costs with no income.
• With ski season coming to an end, so will showings until July, which is when most brokers will begin to see activity pick back up. With a cover letter that I would include with the offer(s), I would certainly point this out (along with some of the other items I’ve outlined here).
• In several condominium complexes there could be two or more similar units for sale and within the same price range. They will be fighting over the same buyer. Should one of those go under contract, then the remaining one would be the only other choice for the second buyer coming in. If that is the case, the buyer of the second would not have as much leverage as if there were two to choose. Furthermore, I would imagine the first property to go under contract would be the most desirable from a buyer’s perspective due to the fact that a deal was made.
• Our office web site had a record number of hits in February and March, and showings are beginning to pick up for us. In fact, this was the busiest Jan / Feb / March I have had (I think I made it to four drop-in hockey sessions all winter.). I’m hoping this continues and we would have a pretty active summer.
But regardless of the situation, for every buyer, the key is to work with a real estate professional that knows the Steamboat Springs real estate market and specializes in representing buyers.
Give us a call / email today!
