19 Apr 2018 Forecast: Home Prices Will Increase in Breckenridge
The birds are chirping, the sun is shining, and the snow is melting. This can only mean one thing – mud season is upon us. As you pack up and move out of your seasonal rental this month, you’re probably feeling nostalgic. You’ve enjoyed snowy days on the mountain, relaxing nights in the hot tub, and more crepes from Crepes a la Cart than you care to admit. After reflecting on a fun ski season, perhaps you’re thinking about extending the party – indefinitely. If you’re considering buying a luxury home in Summit County, now is the time to do it. According to the 2018 Q1 Zillow® Home Price Expectations Survey, a panel of real estate experts forecasted that home prices will increase in Breckenridge and beyond.
The folks surveyed believe that a combination of the new tax code and rising mortgage rates will impact affordability. The tax code they’re talking about is the Tax Cuts and Jobs Act President Trump signed into law just before Christmas. It reduces the limit on deductible mortgage debt from $1 million to $750,000 for new loans taken out after December 14, 2017. The law doesn’t exactly motivate people in million-dollar homes to pack up and move. It also gives those looking to move into homes over $750,000 reason to pause. As a result, we’ll likely see a squeeze on the already tight supply of less expensive homes in desirable areas like Breckenridge.
As for mortgage rates, now isn’t the time to sit and wait for a massive drop. According to Freddie Mac, the average rate on a 30-year, fixed-rate mortgage was 3.78 percent last September. At the time of this blog post, the average rate on a 30-year, fixed-rate mortgage had increased to 4.47 percent. Yikes! Fortunately, mortgage rates are still low by historical standards, and this is probably the best we’ll see in 2018. In other words, there’s never been a better time to lock in a loan and buy a home in Breck.
Experts agree that home prices will increase in Breckenridge and beyond. Now is the time to buy!
You’ve probably heard that the time to buy or sell real estate is in early spring. Here, not so much. In Breckenridge, the real estate season heats up around Memorial Day.
In the weeks leading up, homeowners are busy completing projects and getting their houses ready to sell. We typically see an influx of new properties on the market at the end of May and a few more in June. Therefore, March and April is normally when we recommend buyers begin the pre-approval process. In a competitive market like ours, you need to be prepared to compete against multiple offers and shine above the rest. Of course, you don’t have to do it all alone.
Once you have your pre-approval letter in hand and are ready to start shopping for your new home, give us a call. At Dwell Summit, we know the local real estate market inside and out. We’d love to learn what you’re looking for in a home and help you find a property that’s a perfect fit. Contact us to begin the process!