Vail Valley Real Estate Shows Improvement

As everyone knows, the real estate market across the country has been in the doldrums for the past 12 to 15 months, and this has affected our market in the Vail Valley. The financial industry, which we desperately need for new mortgages, has failed us and sent the economy into a tail spin. We have seen a drop in both sales volume and in number of transactions in every segment of the real estate market. Today we are all looking for the bottom of this drop in volume, which would allow Buyers to step back in and shore up the market. The latest figures we have from February seem to indicate we may be seeing that turnaround.

The past month showed that the number of transactions was up 16%? from January's pace and the dollar volume of almost $57 million was 29% over the past month. That is not to say we have recovered as volume was still only 27% of last year's February sales and only 42% of last years number of transactions. Today, Dr. Yun of the National Association of Realtors spoke to the Vail Board's Annual Luncheon, and indicated that we should be looking for even more recovery in the months to come. He cited that mortgage interest rates were as low as they ever get with a 30 year fixed rate at 4.75% and the Stimulus package has finally started to kick with banks being willing to lend again. In addition, first home buyers are now eligible for a $8,000- federal tax credit.The Fed continues to buy up mortgage related debt through the TARP plan. Finally, the Eagle County Down Payment Assistance Program provides a cash infusion up to 5% for homes up to $450,000- and for Affordable Housing, 10% assistance is available.

The time has come to start looking forward and takng advantage of the low home prices around the Valley and we at Gateway Land have been diligently looking for properties that can fit just about anyone who wants to jump back in.