Short Sales

Good news for the renter as sales in the Vail Valley slow down. Eagle County residents saw the real estate market peak in 2007, and as a result, development and construction of new projects quickly slowed down. This factor was the beginning of a major loss of jobs in the real estate segment of the economy, and as of this year the Valley has lost 6,000 jobs. January through June of that year saw 879 transactions generating sales of $927 million. In January of this year transactions dropped to 407 and sales volume dropped to $401 million representing a 43% drop. On the other hand, sales for the first six months of this year are almost double the total in 2009, which was the low point. In addition to the loss of jobs and because of that fact, there have been a host of foreclosures in the Valley as well - 618 in 2010 and an equal number already this year.

This week has seen an incredible change in the the U.S. economy starting with the new GOP majority in the House of Representatives. There is no doubt that a lot of the Democratic spending bills will soon see new restraints by the House, thus reducing the possibility of more deficit spending, ?and that is good news for Wall Street. The Dow Jones Index soared more than 220 points yesterday(Nov. 4) based on positive expectations out of Washington and also because the Federal Reserve pumped $600 Billion into the financial markets.? Long term interest sank and again, that is good news for future mortgage rates and the impetus for more home buying incentives. In addtiion, other good economic news this week was that Retailers reported higher sales in October which many feel will indicate a stronger holiday selling season. All this is a leading indicator for the real estate market to base its resurgence on.