Vail Valley Real Estate News, Market Conditions and Trends for Friday, May 9, 2014: A look at the numbers for the first week of May, low mortgage rates, and what to do during Mud Season. This is an archived edition of our weekly news brief. Visit our Vail Valley Real Estate News page for the latest updates!
The Rocky Mountain Home Team’s weekly report on Real Estate in the Vail Valley and beyond:
The Vail Board of Realtors’ Multiple listing service has recorded 23 home sales in the Vail Valley in the first 8 days of May 2014. This number is consistent with expectations and virtually matches the same period in 2013 (25 home sales) and 2012 (24 home sales). Once again, what is notable is comparison to 2013 in particular is the uptick at the top of the market. In 2013, six homes sold for over $1 million, and only one sold for over $2 million in the first eight days of May. Over the same period in 2014, eight homes sold for over $1, including six for over $2 million.
If you are the owner of a Vail Valley luxury home, now is a great time for a comparative market analysis. At price points under $1 million, inventory continues to be absorbed and plenty of buyers are still searching for a home. Mortgage rates remain low, incentivizing buyers to lock in a rate before an all-but-inevitable rate hike occurs.
Mortgage rates hit a new low for the year this week as worries about the economy made relatively safe investments like Treasury notes and mortgage-backed securities look more attractive to investors. Rates on 30-year fixed-rate mortgages averaged 4.21 percent with an average 0.6 point for the week ending May 8, down from 4.29 percent last week but up from 3.42 percent a year ago.
Also, Mortgage Delinquencies Drop by Double Digits.The mortgage delinquency rate nationwide stood at 3.61 percent at the end of the first quarter of 2014, down more than 24 percent compared to the same time a year ago, marking the ninth consecutive quarter that the delinquency rate declined.
National Association Realtors Chief Economist Lawrence Yun takes a look at inflation and its effects on mortgage rates: “The current inflation rate is not worrisome, but always worth a closer look.”
This Week in the Vail Valley
“Mud season can seem like a sad face in a text message after a months-long conversation of LOLs and OMGs.” Vail Daily correspondent Rosanna Turner has several suggestions to keep the good times rolling through mud season “until mountain biking/golfing/hiking/rafting/seeing-free-concerts/pool-lounging summer awesomeness begins.”