Real Estate ripples

While local real estate markets set a record for sales volume in July, transactions for the year to date are only at 57% of what they were last year in July.  The market locally feels better then it is.  The Vail market has not adjusted yet.  Part of the problem is that people with lots of money have decided to wait out the current downturn and are not spending much on anything. There is still money out ther ebut the dynamics are changing.  The biggest dynamic , at least for the foreseeable future will be tougher lending standards. The first time home buyer will probably not be able to get financed.  Banks underwriting policies are staying rigid evn through the easy credit days of the last few years. AS the financial market teeters mortgage brokers in the valley are confident in the long term strength of the economy.  The good news is that the fundamentals of the economy are still very good, and tis will pass too. When emotion drives the market, that is where opportunity is. The bottom may be in sight, and that is when buyer’s will start buying again.

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