Vail Valley Real Estate News, Market Conditions and Trends for March 14, 2014. The Rocky Mountain Home Team’s weekly look at Real Estate in the Vail Valley and beyond:
Median sales prices were up 18.6 percent to $873,750 for single family / duplex homes, while new listings dropped 48.5 percent according to the Vail Board of Realtors Monthly Indicators market report for February, released this week. The condo-townhome market saw a 127.9 percent increase to a median price of $875,000, while new listings remained flat. As home prices rise and with inventory low, many builders are “bullish on new construction,” according to the VBR report.
Rising interest rates and higher prices are converging to negatively impact home affordability. Historically, the overall percentage of income spent on housing is still low – primarily due to historically low interest rates. As the Federal Reserve continues to taper its policy of quantitative easing, affordability may continue to decline. On the other hand, if construction begins in earnest, prices may decline in some areas as new homes come on the market.
Will higher sale prices lead to more homes on the market, or will homeowners see appreciating value as a reason to hold on to their homes? Will new construction add jobs and inventory to the market, and if so in what areas of the Vail Valley? “The Spring Market is budding,” the report says, “and it should be an interesting one.”
For more information, download a complimentary copy of the latest Vail Board of Realtors Monthly Indicators Report; courtesy of the Rocky Mountain Home Team.
National Real Estate Market News
As mortgage delinquencies and foreclosures decline, banks are listing bargain-priced products less often. This leads to more moderate investor activity. Some experts are predicting, “The institutional wave has passed.”
Fixed mortgage rates continue to edge up, according to a survey conducted by Freddie Mac.
Even after the rapid, steady gains we have seen lately, Corelogic reports that homes are still undervalued.
Vail Valley News & Events
Minturn residents bid farewell to Lionshead Rock, after a large chunk of the local landmark broke off last Tuesday night.
On Saturday, March 15, Habitat for Humanity of Eagle and Lake Counties will host its 2014 Carpenter’s Ball at Larkspur in Vail. The evening will feature a silent auction as well as a food and wine tasting event featuring international cuisine prepared by Larkspur Executive Chef Anthony Larosa. Visit Habitat for Humanity of Eagle and Lake Countiesfor more information on this annual charitable event.
Are you interested in Vail Valley Real Estate? Contact the Rocky Mountain Home Team today!