Buyers Are Scouring The Vail Valley In Search Of A Steal.

The news reports that the real estate market is heading into the dumper.  The press makes reckless statements spun from quotes taken out of context by those more knowledgeable. 

The one that bothers me most is: "subprime loans are those made to people with poor credit."   Adjustable Rate Mortgages (ARM’s) are a good example of a subprime mortgage.  Most of these type of loans have used for several years quite successfully.  They are in my opinion a desirable alternative for young upwardly mobile people or people planning on their income moving up ahead of adjustments in their periodic mortgage rate increases.  These are not people with poor credit.  Just because someone has an ARM, it does not mean they will go into default the next time their interest rate adjusts. 

What the press fails to report is that in most cases people with ARM’s have made sufficient principle reductions or the home’s value has increased enough, or a combination of both, for the mortgagor to refinance into something more to their liking, if they so choose.

Another favorite is:  "prices to plunge by 40%" as in, the sky is falling everwhere in the Country.

I have of late, been receiving calls from people who live out of state who have obviously bought into the gloom and doom hammered on by the press until the next "crisis" come along.  It goes like this, "Hi, my name is—- and I am looking for a steal.  What have you got?"  Answer; nothing, what else can I help you with?

To the dismay of many, the Vail Valley is not in dire straights, property values are not plunging and few if any forclosures are occuring, the usual time shares excluded.

In short if you are a buyer, buy now at current market prices and wait for the next run up, which if history is any indication, will happen again sometime in the near future.

As long as the Valley continues to have strong demand with a limited real estate supply, (due to limited developable land)  prices will continue in an upward direction.

The only reason the market is slow right now is that Sellers are still thinking the run-up of a couple of years ago is still going. 

These Sellers have two choices, lower their prices to the current market, or wait for the next run-up.  If your property is not listed at market, you are not a seller; you are a listor.

How do you know if you are buying at the current market?  Call me.

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