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A Market Recap That Makes Sense to Everyone

by Allison Simson

Happy Tuesday Morning to YOU

Spring break is in full swing here in Summit County!  We have had countless blue-bird blue skies and tons of fluffy powder!  Ahhhhhh, just another day in paradise!

We hear so much in the media about the state of the market and interest rates that it can be so overwhelming.  I received this quick recap from a lender we work with, Rod Shuster with Universal Lending, that I can UNDERSTAND and is actually pretty INTERESTING!!  I thought you might enjoy it, too.  


The Fed Giveth; Will It Taketh Away?

More than 200 years ago, Mayer Rothschild, founder of the Rothschild banking dynasty, uttered one of the more profound observations on finance and power. “Permit me to issue and control the money of a nation,” said Rothschild, “and I care not who makes its laws.”

Rothschild recognized that money matters, and it matters a lot. Money is, after all, 50% of every transaction. The importance of how much money is in an economy and the interest to be charged on that money cannot be understated.

Because the quantity of money and the interest charged are so important, much time and attention are extended to the Federal Reserve. The Fed is, after all, our central bank and manages our money supply and the interest to be charged on that supply. When Fed officials speak, markets always listen.

Fed Chair Janet Yellen spoke to Congress this past Wednesday, and markets listened, and for good reason: Ms Yellen offered more insight on quantitative easing (QE) – the Fed's purchases of Treasury notes and bonds and mortgage-backed securities (MBS) – and the direction of interest rates. In short, QE is going down and interest rates are going up.

As for QE, it's likely to end by December. The Fed has already reduced its monthly purchases of Treasury notes and bonds and MBS to $55 billion per month effective in April. Should the Fed continue to reduce its purchases at the rate of $10 billion per month, as it has for the past three months, there will be no QE by January 2015.

As for interest rates, Ms Yellen hinted that they could commence rising within six months after QE ends. This means the fed funds rate, in particular, would likely begin to ratcheted up sometime in July 2015. The fed funds rate is currently near zero, and many market participants doubt it will stay there. Futures markets are now pricing a 0.50% fed funds rate by August 2015.

In short, we should expect meaningfully higher mortgage rates this time next year.

As for the here and now,'s and Freddic Mac's most recent weekly surveys actually showed the rate on the 30-year fixed-rate mortgage down week over week. But we need to note that these surveys were winding down just as Ms Yellen was winding up. On Wednesday, rates on most mortgage products moved higher, though not disconcertingly so.

We're even more convinced that we'll likely see 5% on the 30-year fixed-rate loan by this time next year. Note that we say “likely,” not “guaranteed.” Ms Yellen offered her projections with many caveats and hedges based on growth prospects. As it now stands, though, the Fed expects economic growth could run as high as 3.5% annually in 2015, with the unemployment rate falling to as low as 5.4%.

If the Feds more bullish forecasts come to fruition, rising mortgage rates shouldn't be feared. But that means it becomes more urgent to act sooner on locking in a loan rate. The window on the rates that prevail today will close sooner than many borrowers anticipate.



Date and Time



S&P Case/Shiller Home Price Index

Tues., March 25,
9:00 am, ET

(Year-Over-Year Increase)

Important. Slippage in price gains will likely be seen in more local regions.

New Home Sales

Tues., March 25,
10:00 am, ET

450,000 (Annualized)

Important. Weather will have slowed sales for the month.

Mortgage Applications

Wed., March 26,
7:00 am, ET


Important. Low purchase activity suggests owner-occupied buyers remain sidelined.

Gross Domestic Product
(4th Quarter 2013)

Thurs., March 27,
8:30 am, ET

2.5% (Annualized Growth)

Important. GDP growth has slowed due in part to atypically bad weather.

Pending Home Sales

Thurs., March 27,
10:00 am, ET

0.1% (Increase)

Important. The sales freeze in recent month is showing signs of thawing.


Enjoy the week! Here is our featured listing of the week: 

Image Unavailable


Price: $429,000

Beds: 3

Baths: 3

½ Baths: 1

Sq Ft: 1915

In the heart of Wildernest, this gracious townhome was created to very comfortably accommodate a large family- retreat style! Lovely finishes & furnishings w/ pretty hardwood floors that shine. Loads of space for you & all your gear. Tucked away w m...

View this property >>

Thinking About Buying? 5 Reasons to Act Now

by Allison Simson


Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying.

1. Competition is about to Increase

Every spring a surge of prospective purchasers enter the housing market. Like you, they will want the best home available in the best location at the best price. They will be competing with you for the ‘steals’ in the market. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy available today that no longer be available as the market heats up..

2. Price Increases Are on the Horizon

Nationally, home prices are projected to appreciate by 4.5% in 2014 and by over 19% from now until 2018. First home buyers will probably pay more both in price and interest rate if they wait until the spring. Even if you are a move-up buyer, it will wind-up costing you more in net dollars as the home you will buy will appreciate at approximately the same rate as the house you are in now.

3. Owning a Home Helps Create Family Wealth

Whether you rent or you own the home you are living in, you are paying a mortgage. Either you are paying your mortgage or your landlord’s. The Federal Reserve, in a recent study, revealed that the net worth of the average homeowner is 30 times greater than that of a renter.

4. Interest Rates Are Projected to Rise

The Mortgage Bankers Association, the National Association of Realtors, Freddie Mac and Fannie Mae have all projected that the 30-year mortgage interest rate will be over 5% by the spring of 2015. That is an increase of almost 3/4 of a point over current rates.

5. Buy Low, Sell High

Most would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’ compared to where it will be next year. It’s time to buy.


Summit County Scoop

by Allison Simson

Happy Tuesday to YOU!

We were fortunate to attend the "State of the County" meeting hosted by the different town managers a week or so ago.  Here are some of the highlights and tidbits about what is happening around the county:

Silverthorne - Ryan Hyland

  • Smith Ranch - 50 acre parcel; town is working with Summit County Housing Authority to build affordable housing.  There will also be an additional 11 acres of commercial space next to the road
  • Built a new Xcel substation
  • Pavilion Revenue up 36%, lots of events and shows being held there
  • Rec Center trying to expand space without expanding the walls; this means the racquetball courts will be going away
  • A new brewery will be going in the old Village Inn building
  • Want a place that is economically viable and supported by the community
  • Hampton Inn applied to build a hotel in Summit Place shopping center (next to Mountain Sports Outlet) was approved –sort of... with 22 conditions- it may not be happening anytime soon!

Frisco - Bill Efting

  • The so-called "Christmas tree lot: was sold to Gerald Hines, an Aspen Developer, no plans have been submitted
  • Whole foods currently hiring – Grand Opening end of April / beginning of May
  • Step up Main Street: starting in the fall – narrowing main street and widening the sidewalks; improving the drainage of 6th and 7th Avenues; re-doing curbs
  • Revenue at the Frisco Marina is up due almost entirely to stand-up paddle board rentals
  • Best Western sold for $7.3 million – gave real estate tax huge boost in 2013
  • Frisco Adventure Park – $1.3 million in revenue just from the tubing hill, might put in another Frisbee golf course – trying to create a long term plan for the area
  • Frisco BBQ Challenge will be the 2nd weekend of June, the competition spots sold in 25 minutes!

Dillon - Joe Wray

  • Sales tax revenues up 7% - putting money in the reserves and savings
  • Petco should be opening in the late spring or early summer in the old Borders building
  • Putting another $300,000 in the marina to finish the parking lot this year and add more slips - currently have 300, adding a few 100 more
  • Over 100 events during the year – concerts (thinking of adding some Wednesday/Thursday nights) and Friday Farmers’ Market.
  • Dillon BBQ will be expanded to become more of a summer festival rather than just a BBQ – more music
  • April 1 ballot issue for pot – over the next few weeks there will be public forums held to discuss regulations
  • As of right now there can be no churches in the center of Dillon, changing that – One Community (which has been meeting in the movie theater) will be located in the ground floor of the La Riva complex

Breckenridge – Tim Regan

  • Want to expand the arts and culture at the River Walk Center – plans to start using it year-round
  • Almost all improvements at Breckenridge Ski Resort are taking place at Peak 8 and Peak 6 this year
  • Changing the Colorado chair to a six-pack this year
  • Opening of Peak 6 terrain
  • In the first 3 weeks, one marijuana retail store made $1 million, $60,000 in sales tax
  • 80% of pot buyers are from out of state, most of the purchasers are 60-70 years old
  • Possible roundabout at French St
  • CMC Breckenridge – considering dormitories/housing especially  for 4-year students 
  • Only 45% of people who work in Breckenridge live in town - don’t want to become an Aspen where everyone has to live elsewhere due to costs

Summit County – Gary Martinez

  • Revenues up overall 12.5% - first up since 2005, this means that A-Basin, Keystone and Copper are starting to come back
  • Property values down 17% overall; however, the next period looks strong - so far seeing an 8% property value increase in most recent tax evaluations
  • Summit County building department was busiest ever 2013 - $96 million in permits (includes any and all permits)
  • New South Ranch library in old CMC building in Breck planning for opening November/December
  • Working with Frisco to buy parcel from Forest Service along Dillon Reservoir to built affordable housing
  • Old Dillon Reservoir: Stocked with golden trout (not native to the area but isolated in Old Dillon), went from 50 acre feet to 300 acre feet; currently half full, expected to fill up with the run-off this spring
  • Talking about extending bike path over Leadville through climax.
  • Vail pass path also improved – joint effort between Summit and Eagle counties
  • After Iron Springs changes to Hwy 9, the bike path will be able to go all around the lake
  • Dillon Reservoir is 4ft to 5ft down, usually lower this time of year but Denver Reservoirs are full so they are not drawing water from Dillon right now
  • 2014 Spring Break supposed to be the largest Summit County has ever seen
  • By the end of 2015, CDOT is are hoping to have a “hard shoulder” on I-70 that can be used as an HOV/Toll Lane during peak traffic times! 

So much going on in our lovely little Summit County! 

Here's a tasty listing in Keystone for you to check out:


Image Unavailable

120 Tennis Club Road RD

Price: $195,000

Beds: 1

Baths: 1

Sq Ft: 933

A very happy, simply delightful getaway tucked among the pines and lush with beauty. Gorgeous wooded setting that is infused with lots of light. Superb clubhouse. Free shuttle line & minutes to the slopes. Big closets and extra ski storage make room...

View this property >>

And Here's Your Morning Coffee!

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Contact Information

Photo of Summit Real Estate Real Estate
Summit Real Estate
The Bright Choice
330 Dillon Ridge Way, Suite 10
Dillon CO 80435
Fax: 970-468-2195

Allison Simson, Owner/Broker, is a licensed Colorado Real Estate Broker