How's the market? Breckenridge and Summit County

 

I thought I would write to you about the current state of the real estate market. The last 6 weeks have been a transition period from the market that existed in the prior 18 months. The effect of the short-term rental restrictions, coupled with economic factors such as inflation and interest rates have given buyers cause for concern and they are sitting on the sidelines. Sellers, who have the benefit of high home equity levels are still bullish on pricing. This has led to somewhat of an impasse in the market and the word ‘frozen’ has been used to describe activity. It can also be said that we could be reverting to a more traditional selling season where the market does not really fully kick in until after July 4th……. We shall see.

 

In my opinion, the next 4-6 weeks will be very telling. If buyers step in by mid-July then we will know that we are moving back to a more traditional market (albeit with some economic headwinds). If, however we do not see an uptick in activity, my view is that until we have some clarity on the short-term rental restrictions and also stability in interest rates / lower inflation, the ‘frozen’ market may well extend through the summer and beyond.

 

Price reductions at the moment, without the understanding of buyer behavior, does not make sense to me. You could reduce the price and still not have the buyers…. All this would currently achieve is guaranteeing a lower sales price without the guarantee of there being buyers.

 

by James Shingles