Economic Indicators Show A Recovery Is In The Works.

An articled written by Johathan R. Laing in Barron’s July 14, 2008 edition provides information indicating a turn around in the real estate market is occurring.

The article points to declining inventories of existing homes and new single family homes, a decline in the average time a home for sale is on the market, and signs prices of homes are starting to rise.

The article also shows how different indicators are providing early signs of a turn around in the market place.  The article indicates a bottoming of the market in California which has in the past, been an indicator of what is in store for Colorado.  The article is attached below.

Here in the Vail Valley the stand off between buyers and sellers continues.  Buyers think or at least are hopeful the real estate market in Happy Valley will start to bleed soon.  Unfortunately that has not been the case and frankly I don’t think it is going to happen. 

We have seen seller’s cut the fat out of their prices (finally realizing the run up in ’06 ended) and bring them in line with what market prices should be.  Beyond that, I don’t see seller’s unloading real estate.  Despite all the gloom and doom reported by the press, things remain pretty stable in the Vail Valley. 

There are a lot of owners here who are not affected by doom and gloom and as long as the Vail Valley continues to be desirable to these owners, prices will continue to move upwards.  Why?  Limited inventory and strong demand helped along by our current County Commissioners who are doing a “masterful” job of stifling any new housing inventory.

So, if you are a buyer and are waiting for “blood to run in the streets”, you might want to look elsewhere because I think we are poised for another run-up.

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