…By way of the Caribbean. I’m enjoying 80 degree weather and missing the snow. Ha ha! Taking a cruise in the middle of winter is just what the doctor ordered. Sometimes an escape from reality helps to get your mind right. I just went through the buffet line, and now I’m contemplating going on a diet as soon as I get home, and while I’m at it, maybe I’ll start working out again.
But so much for the good life; here’s what’s happening back home. The big story so far this year is the weather, or lack thereof. We are experiencing a severe drought. A few weeks ago our snowpack was as low as 30% of median for this time of year, but we’ve had a couple of big storms roll through, and we’ve climbed back up to 53% of median. Wolf Creek Ski Area has about 72 inches of snow on the ground right now, which is plenty for the Spring Breakers who will soon be coming to town. Like usual, Wolf Creek has the most snow of any ski area in Colorado by a wide margin. The Spring Breakers are very important to our local economy. The ski area will be winding down in about a month, so this is the last hurrah for the tourism industry until the snowbirds come back to town in May.
Now for the latest in real estate news. Total numbers of sales are about the same as last year, but the difference is in the mix. Sales of homes and condos are down about 20% and inventory is up about 20%. On the bright side, land sales are up 43%. The biggest increase was in small lots under a half acre. These properties are being bought up by spec builders. The most surprising stat this month is the big increase in inventory in the $250,000 to $300,000 range. Last year there were 8 homes listed in this price range, and this year we have 21.
The other big real estate news is that interest rates are headed up. Rates have jumped a half percent since the first of the year. They were at 4.25% a couple of months ago and now they are hovering around 4.75% for a 30-year fixed-rate mortgage. In layman’s terms, this means you’ll pay about $30 more per month per $100,000 borrowed, or about $10,000 more over the life of the loan per $100,000 borrowed. This may seem pretty dramatic, but let’s put things in proper historical context. In 1968 the going rate was 8.5%. In 1981 it was 18.6%, and in 1991 it was 9%. Just before the big real estate crash in 2008, the rate was 6%, and then we hit the record low in November of 2012 at 3.31% . Over the past 47 years combined, the average rate has been around 8%. So if you look at the big picture, rates are still at historic lows. I expect rates will continue to rise. The moral of the story is: if you’re looking to buy a home, you may want to do it sooner rather than later or you’ll probably be paying a premium.
So long for now! Hopefully we get some more snow in March!
GRI, CRS
2011 & 2014 Realtor of the Year
Phone (970) 731-4065
Fax (970) 731-4068
Cell (970) 946-3856
Email: [email protected]
