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Are Home Values REALLY at Record Levels?

by KCM Blog

Are Home Values REALLY at Record Levels?

Are Home Values REALLY at Record Levels? | Keeping Current MattersLast week, the National Association of Realtors (NAR) released their Existing Home Sales Report. The report announced that the median existing-home price in June was $236,400. That value surpasses the peak median sales price set in July 2006 ($230,400). This revelation created many headlines exclaiming that home prices had hit a “new record”:

Wall Street Journal: Existing-Home Prices Hit Record

USA Today: Existing home sales surge, prices hit record

Though the headlines are accurate, we want to take a closer look at the story. We do not want people to believe that this information is evidence that a new “price bubble” is forming in housing. NAR reports the median home price. That means that 50% of the homes sold above that number and 50% sold below that number. With fewer distressed properties (lower valued) now selling, the median price will rise. The median value does not reflect that each individual property is increasing in value. Below are the comments from Bill McBride, the author of the esteemed economic blog Calculated Risk. McBride talks about the challenges with using the median price and also explains that in “real” prices (taking into consideration inflation) we are nowhere close to a record.

“In general I'd ignore the median sales price because it is impacted by the mix of homes sold (more useful are the repeat sales indexes like Case-Shiller or CoreLogic). NAR reported the median sales price was $236,400 in June, above the median peak of $230,400 in July 2006. That is 9 years ago, so in real terms, median prices are close to 20% below the previous peak. Not close.”

Earlier this week, the Wall Street Journal covered this issue in detail. In this story, Nick Timiraos explained that this rise in median prices is nothing to be concerned about:

“Does this mean we have another problem on our hands? Not really…There may be other reasons to worry about housing affordability by comparing prices with incomes or prices with rents for a given market. But crude comparisons of nominal home prices with their 2006 and 2007 levels shouldn’t be used to make cavalier claims about a new bubble.”

Bottom Line

Home values are appreciating. However, they are not increasing at a rate that we should have fears of a new housing bubble around the corner.

#BestOfSummit

by Allison Simson

 Help Us Be Summit's Local Choice and VOTE Today?!

It’s that time of year again when our local paper, The Summit Daily News, runs the “Best of the Summit” contest and I’m excited to be nominated again this year!!  It's a fun contest and the results give you a great idea of who is providing great service and products in Summit County. 

I’ve been #2 or #3 for the past 7 years and would LOVE to make the list again – I could use your help! 

Would you mind taking a moment to vote and share your opinion with those who look to locals for the real story?  I THANK YOU IN ADVANCE!!!!

Just click here to help Summit Real Estate stay on top!!!  Please go to Best of Service and then Best Real Estate Agent...... I know it takes a minute or two, but it means a lot to us...and so do YOU!!!!

We are beyond grateful for your consideration. Voting ends July 25, 2015.

Hope you are enjoying this glorious summer! 

And Here's Your Morning Coffee!

HOUSING MARKET HEATS UP

by Allison Simson

Happy Wednesday to YOU

Great real estate information in the Summit Daily News today.  Even though it's Wednesday, I didn't want you to miss it! 

HOUSING MARKET HEATS UP

It’s summer, and that means the local real estate market is sweltering hot.

That’s not always the case — only three years ago, Summit investors were still gun shy from the 2008 Recession — but, the past two summers have brought booming business to commercial and residential brokers, leading to a whopping $114.5 million in total transaction during May 2015. That’s nearly $20 million more than last May, which itself saw $95.1 million in sales.

One thing’s for certain: Early summer is when everyone — from prospective homeowners to established business owners — starts signing papers for the properties they eyed all winter. A total of 204 properties moved this May — that’s 25 more than in 2014 — ranging from four $375,000 units at Lake Forest Condominiums in Frisco to two homes over $2.5 million in the Highlands at Breck-Highlands Park neighborhood.

Compare those lofty sales totals to the figures from February 2015, when sales barely reached $50 million, and only four transactions hit the $1 million mark.

Just three months later, 15 properties went for more than $1 million, including the big daddy of them all: the final undeveloped plot at the posh Shock Hill neighborhood in Breckenridge. It sold for $10.25 million in early May to a small group of local developers, and, before the papers were even signed, they had tabbed Double Diamond Property and Construction of Frisco as the developer.

Managing broker Ned Walley says the Shock Hill sale was highly competitive — a major change of pace from when he first took on the property in 2013.

“When I first got the listing, I just sat and stared at a phone for a few months,” said Walley, who notes the 6.67-acre plot was originally slated for a resort-style condo complex that never came to be. “It never rang. But then, when things started getting better, when the economy turned, I started getting more interest. No one was interested in a major project, but, when people were willing to pull out checkbooks and write a seven-figure check on the spot, that’s a sign the economy is picking up. Interest picked up.”

All told, the 15 high-dollar sales in May 2015 accounted for nearly $33.7 million of the $114.5 million total, or roughly 30 percent of all sales. But here’s a fascinating tidbit: In terms of sheer volume, last May actually outperformed this May in the $1 million-plus arena, with 20 transactions totaling $30.86 million (about 32 percent of the total). Yet, 2015 saw seven sales over $2 million, including the Shock Hill plot. That sale skews the comparison a touch, but more sales at a higher price point speak to Walley’s point: Investors and homeowners alike are now more willing to seven-figure checks.

“When it seemed like the dust settled and other suitors didn’t pursue, we took another stab at it,” said Chris Canfield, spokesman for the Shock Hill owner, ROCA Holdings. “We’ve had a plan from the start to build homes that fit into the Shock Hill aesthetic. It’s the most coveted area in Breckenridge, and we are looking at a unique and special product.”

THE DARK SIDE OF SUMMER

As any developer knows, unique and special in a red-hot market is key, particularly as inventory continues to shrink across Summit. Breckenridge is now at 90 percent build out, while Frisco has even less room for properties larger than 1 acre.

The looming property crunch shows the “dark side” of a sizzling real estate market. At some point, as property values climb to peak levels, inventory will reach all-time lows and developers will be forced to continue expanding. This tug-of-war between development and conservation has already sparked heated debates in two local towns, Blue River to the south and Silverthorne to the north, where the combination of a rejuvenated economy and fervent interest from second-home owners led developers in both towns to triple density levels. Yet, none of the units on either parcel is considered affordable, at least as defined by the state and county: Ruby Placer in Blue River calls for units around $500,000 and up, while South Maryland Creek Ranch in Silverthorne calls for units in the $550,000 to $625,000 range.

And, only time will tell what happens to Summit’s southern and northern limits. Maryland Creek was approved by the Silverthorne Town Council in late May, and Ruby Placer is scheduled for a public vote on Sept. 15.

MAY’S MAGIC NUMBERS 2015

204 — Total real estate sales

179 — Total real estate sales (2014)

$114.5 million — Total value of all sales

$95.1 million — Total value of all sales (2014)

$10.25 million — Most expensive sale

$2.525 million — Most expensive sale (2014)

15 — Sales of at least $1 million

If you want to know the inside scoop on what these numbers might mean for you, please give us a call or reply to this email! 

AND Check out this property- Do you know anyone who would be perfect for it?

Image Unavailable

62 TWENTY GRAND CT

Price: $430,000

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...

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4th of July County Events

by Allison Simson

Happy Tuesday to YOU! 

Thinking of skipping town in favor of cooler mountain temps and fresh air this Fourth of July holiday? You’re definitely not alone.  Here is a rundown of all of the different town events.  Bring your cooler...and a chair!  You'll be busy!  

See you on Main Street!  Happy Independence day to YOU! 


Frisco’s Fabulous Fourth of July

8:00am – Team Summit Pancake Breakfast (110 3rd Ave.)

9:00am  – Kids Fishing Derby (Meadow Creek)

10:00am – 11:00am – Summit Concert Band (Historic Park Gazebo)

12:30pm – Fabulous Fourth of July Parade (Main Street from Madison Ave. to 6th Ave.)

1:30pm – Guild of Ages (Historic Park Gazebo)

3:30pm – 5:00pm – Interactive Drum Circle with Peak Rhythm  (Main Street from 3rd Ave. to 4th Ave.)

7:15pm – 9:15pm – The Long Run– Eagles Tribute band (Marina)

9:30pm – Fireworks over the Marina

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Dillon Fun

 

July 3 - Cash'd Out - Johnny Cash Tribute 
The only tribute band endorsed by the official Johnny Cash web page, JohnnyCash.com, Cash’d Out has played to over a million fans since forming in 2005. 
https://www.youtube.com/watch?v=raSESCGj7KA

 

July 4th - NRO Performance- The National Repertory Orchestra takes the Dillon Amphitheater stage for a special Independance Day celebration unlike any other concert in Colorado. The beautiful mountain and lake backdrop frames this free concert starting at 10 AM and featuring the Lake Dillon Theatre Company Summer Musical Theatre performers. Show up early to reserve a prime seat on the lawn.

2015 SUNSET AT THE SUMMIT CONCERT SERIES 

July 4- Forever In Blue Jeans

Forever In Blue Jeans creates for the audience an authentic Neil Diamond experience that's sure to please. Featuring some of the best musicians in Colorado, this tribute band plays all the hits and truly delivers! 

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Keystone Mountain Resort Events

 

 

 

 

 

 

 

 

 

 

4th of July Celebration

 

Keystone is celebrating our nation's birthday with flare. Start the morning with a Fishy Derby and our popular annual bike parade. Enjoy a BBQ, live music and a day full of family activities. Cap off your night with a fireworks show.

Ages: All ages.

Schedule of Events:

8:00am-9:30am Fishing Derby
This event is for children 12 and under. The entire family can cheer and enjoy a morning on the lake. Raffle prizes, BBQ, and live music will follow the event.

9:00am - 11:00am Super Slimy Science at Kidtopia Headquarters
Join Keystone Science School in discovering the wonders of our Colorado waterways! Our Super Slimy Science Program will allow guests to familiarize themselves with Summit County aquatics. We will focus on the biological and chemical aspects of our very own Snake river. The program will consist of hands-on activities, including searching for water bugs and performing fun chemical tests on the river. Don't miss out on all the Science. Adventure. Fun!

9:00am-10:00am - Strider Balance Bike Followed by Strider Balance Bike Series Races from 10:00am - 11:00am
This one is for the little tikes. A race designed just for them! Come out to the River Run Village and enter your kids in the only Summit County Balance Bike Race Series. Entry is FREE. Age categories 2yrs – 3yrs // 4yrs – 5 yrs girls and boys ride together. Prizes for top finishers.

10:30am - Bike Decoration Party Followed by Children's Bike Parade at 11:00am
River Run is celebrating our nation's birthday with flare. Bring your bike, tricycle, or wagon and join us for our popular annual bike parade. The bike decoration party starts promptly at 10:00AM. Then line up for the annual bike parade at 10:30AM. Children will receive decorations for their bikes and must be present to receive the decorations. One decoration bag per child. Parents are invited to join the fun and encouraged to bring their own decorations. All KNC staff reserve the right to deny adults decorations so that more children may enjoy the race-day fun. Children's Bike Parade will start at 11:00am.

11am-1pm - Ala Carte BBQ at Edgewater Grill

9:00pm - Fireworks Show
Free Fourth of July Fireworks show - show begins at 9:00pm and is visible from Lakeside Village

Parking: Free parking will be available in the River Run Parking Lot (River Run Village) and the Keystone Conference Center Parking Lot (Lakeside Village) just off of Hwy 6, across from the Keystone Lodge. Walk through the underground tunnel to the Village.

Location: 
195 River Run Road  Keystone, CO
Closest Landmark - Gondola

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Breckenridge 4th of July

CELEBRATE INDEPENDENCE DAY Enter a float in the parade! When: Saturday, July 4th , 2015 at 10:00 a.m. Where: Main Street, Breckenridge 

Kids’ Water Fight – Kids’ can join the Red, White & Blue Fire Dept. in an old time water fight on Main Street. Free for kids to participate. A hit every year. 1:00pm - 3:00pm

Street Arts Festival (July 3-5) - A celebration of street, pavement and graffiti arts that will feature a weekend of 3D murals, chalk drawings, live music and hands-on workshops at the Breckenridge Arts District campus. Presented by Breckenridge Creative Arts.

Viper ‘Show and Shine’
 - Vipers will be parked on Main Street allowing spectators to view the cars. 12:30 p.m. – 3:00 p.m.

Free 2:00 p.m. concert at the River Walk Center BoDeans

National Repertory Orchestra: 4th of July Patriotic Concert 8:00pm - For almost 20 years, the Town of Breckenridge and National Repertory Orchestra (NRO) have collaborated to present a Patriotic Concert each July 4th at the Riverwalk Center in Breckenridge, CO. In order to prevent numerous empty seats due to unused free tickets and in order to offer tickets online at a greater convenience to all of our guests, the Riverwalk Center Box Office will sell indoor reserved seat tickets at a cost of $5, $10 and $15. There will be a limit of 5 tickets per order.


Fireworks (weather permitting)- 9:45pm A full professional fireworks display will be set off in town and can be visible from all over town.

32th Annual July Art Festival July 3-5, 2015 – The 31th Annual Breckenridge July Art Festival is annually ranked one of the top art shows in the United States. Located at Main Street Station at the corner of Main Street and South Park Ave. For further information please visit 
www.mountainartfestivals.com.  Admission is free.

And as always, check out the listing below....maybe it would be perfect for someone you know!  

 

 

Image Unavailable

980 LAKEPOINT DR

Price: $440,000

Beds: 2

Baths: 2

Sq Ft: 1005

Jaw-dropping views of the lake w perfect firework viewing! Updated & upgraded- granite island, new tile, carpet, cabinetry. The quick-dash-to-dinner, close-to-shopping & shuttle location is perfect. Quiet complex & owners who adore it! 8ft garage do...

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You DO NOT Need 20% Down

by KCM Blog

One More Time…You DO NOT Need 20% Down

Posted: 02 Jul 2015 04:00 AM PDT

One More Time You Don't Need 20% Down | Keeping Current MattersA recent survey by Ipsos found that the American public is still somewhat confused about what is actually necessary to qualify for a home mortgage loan in today’s housing market. The study pointed out two major misconceptions that we want to address today.

1. Down Payment

The survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 36% think a 20% down payment is always required. In actuality, there are many loans written with a down payment of 3% or less and the number has increased through the first quarter of the year as shown by the graph below: Percent of Low Down Payments | Keeping Current Matters

2. FICO Scores

The survey also reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780. In actuality, the average FICO scores of approved conventional and FHA mortgages are much lower: Average FICO Scores | Keeping Current Matters

Bottom Line

If you are a prospective purchaser who is ‘ready’ and ‘willing’ to buy but not sure if you are also ‘able’, sit down with someone who can help you understand your true options.

Displaying blog entries 1-5 of 5

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Photo of Summit Real Estate Real Estate
Summit Real Estate
The Bright Choice
330 Dillon Ridge Way, Suite 10
Dillon CO 80435
970-468-6800
800-262-8442
Fax: 970-468-2195

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