Number of Transactions Up Compared to Past Years

            Although the average sales price has fluctuated a bit, over the last few years the number of transactions appears to be on the rise.  This is good news for a market with a large inventory (over a years worth) that needs to be chipped away at before we can expect to see sustained appreciation.

            In the first four months of 2010, Summit County saw 224 residential transactions with an average sales price of $526,571.  During the same time period in 2011, the number of transactions grew (25%) to 280 and the average sales price came up slightly (3.4%) to $544,489.  In the first four months of this year we have seen 294 residential transactions (up 5% compared to last year and 31% compared to 2010) with an average sales price of $532,366 (down 2% from last year and up 1% compared to 2010).

            Like any market, when there is too much supply the value goes down.  However, if the demand for properties in Summit County (AKA number of transactions) continues to grow, it is likely to lead to a decrease in supply and an increase in value.  As always, it will be interesting to see how this plays out in the coming months but, feel free to contact me anytime at the information below with questions.

                                                                                                 

All the best,

Tyler MacGuire  e-PRO®, SFR

Broker Associate

Omni Real Estate Company

Office: 970-468-2740

Mobile: 970-409-7779    

Web: www.tylermacguire.com

          

“Your Guide to Summit County Real Estate”

Why Savvy Investors Trade Up in a Down Market

With Real Estate prices down about 25% from a few years ago and mortgage rates still incredibly low, more and more real estate investors are taking the opportunity to sell their current property in order to purchase a larger one.  At first glance selling in a down market may seem contrary to the “buy low, sell high” theory however, in reality now is a great time to upgrade.

Let’s say for example you own a $400,000 property and there is a $700,000 property that you would prefer to own.  Just a few years ago when prices were 25% higher that $400,000 property was worth $500,000 and the $700,000 would have cost you $875,000!!!  Although you would be selling your current home for $100,000 less than you may have a few years ago, you will be able to purchase the new home for $175,000 less than a few years ago.

Lastly, with interest rates still at historical lows, the actual cost to purchase is much lower than it was a few years ago.  As always, please feel free to contact me anytime if you have questions about this or anything else relating to Summit County Real Estate.

All the best,

Tyler MacGuire  e-PRO®, SFR

Broker Associate

Omni Real Estate Company

Office: 970-468-2740

Mobile: 970-409-7779    

Web: www.tylermacguire.com

        

“Your Guide to Summit County Real Estate”

Q1, 2012 Compared to Q1, 2011

In the first quarter of 2011 Summit County saw 200 residential transactions with an average sales price of $516, 266.  In 2012 however, the first quarter saw 196 residential transactions (down 2%) and an average sales price of $548,078 (up 6%)!     

Looking forward, there are currently 188 transactions pending with an average list price of $543,944.  We also have 1,209 active listings which represents over a years worth of inventory.  An inventory of over six months is generally considered to be a buyer's market and with the average sales price on the rise now may be the time to take advantage of low pricing, low interest rates and a large inventory.

As always, if you have questions about this or anything else pertaining to Summit County Real Estate please feel free to contact me anytime.

All the best,

Tyler MacGuire  e-PRO®, SFR

Broker Associate

Omni Real Estate Company

Office: 970-468-2740

Mobile: 970-409-7779    

Web: www.tylermacguire.com

      

“Your Guide to Summit County Real Estate”

The information contained herein is based solely on MLS data.

How to Take Title

In Colorado there are three main ways in which people can take title to their home.  Of the three main options, one applies to individuals while the other two address multiple owners or married couples.

Fee Simple / In Severalty: This is how most individuals take title and is easiest to understand.  When taking a Fee Simple Title, you are the sole owner of the property and can decide unilaterally to sell or to will the property to whomever you choose.

Joint Tenants:  Also known as Joint Tenants with The Right of Survivorship.  Taking title as Joint Tenants means that there are multiple owners and they do not have the right to will their interest in the property to anyone.  Upon the death of one of the owners, their interest in the property will be transferred to the remaining owner or owners.  This is the most common way that married couples take title.

Tenants in Common:  Tenants in Common differs from Joint Tenants in that Tenants in Common DO have the right to will their interest in the property to anyone they wish.  Tenants in Common are often partners who get together to purchase Real Estate and want to be able to will their interest in the property to family or friends rather than their co owner/s.

As always, if you have questions about this or anything else pertaining to Summit County Real Estate, please feel free to contact me anytime.

All the best,  

Tyler MacGuire  e-PRO®, SFR

Broker Associate

Omni Real Estate Company

Email: tylermacguire@hotmail.com

Mobile: 970-409-7779    

Web: www.tylermacguire.com

        

“Your Guide to Summit County Real Estate”

Price Vs Cost

             As a Buyer, it is very important to understand the difference between price and cost as it relates to a Real Estate transaction.  The price of a home is the amount it is sold for and if there is not a loan involved the price and cost will be the same.  However, if you will be securing a loan to purchase the property, the actual cost of the home may vary greatly.

            Let’s assume you are going to buy a $200,000 condo with 10% down and a 30 year fixed interest rate of 5%.  In this situation you would be putting $20,000 down, receiving a $180,000 loan and would have a monthly principal and interest payment of $966.28.  If you were to stay in the home for ten years, the total principal and interest payments would add up to $115,953.60.

            Now, let’s assume that you wait until interest rates go up and purchase the same condo, for the same price, but you have a 6% interest rate on your loan.  In this situation, you would still be putting $20,000 down and securing a $180,000 loan but, your monthly principal and interest payment would rise to $1,079.19.  Over the course of ten years this principal and interest payment would add up to $129,502.80. 

            It is important to understand that both of these scenarios are assuming the same condo at the same price.  However, by raising the interest rate in the second scenario by just 1%, the cost of the home over the next ten years goes up by $13,549.20!!!

           As always, if you have questions about this information or anything else pertaining to Summit County Real Estate, please feel free to contact me anytime at the information below.

All the best,

Tyler MacGuire  e-PRO®, SFR

Broker Associate

Omni Real Estate Company

Mobile: 970-409-7779    

Web: www.tylermacguire.com

Email: tylermacguire@hotmail.com

          

“Your Guide to Summit County Real Estate”

Market Maintaining Momentum in 2012

            After a strong start to the New Year, the Summit County Real Estate Market has maintained momentum through February.  In February 2011 we saw 64 transactions with an average sales price of $503,988.  By comparison, in February 2012 the number of transactions dropped 7.8% to 59 while the average price rose by 20% to $613,183!!!

            Despite a drop in the number of transactions in February 2012 compared to February 2011, the year to date the number of transactions is still exceeding 2011.  Through the first two months of 2011 we saw 121 transactions with an average sales price of $488,632.  By comparison, in the first two months of 2012 the number of transactions is up 3.3% to 125 and the average price has come up 13% to $533,087!!!

            Looking forward, there are currently 148 transactions pending with an average list price (final sales prices are still unknown) of $542,040.  Furthermore, we still have 1,186 active listings which represents about a years worth of inventory.  Typically an inventory greater than 6 months is considered a Buyer’s Market but, with the number of transactions and average sales price on the rise, those who have been waiting for the market to bottom out may be well advised to act quickly.

            As always, if you have questions about this or anything else that relates to Summit County Real Estate, please feel free to contact me anytime at the information below.

           

All the best,

Tyler MacGuire  e-PRO®, SFR

Broker Associate

Omni Real Estate Company

Office: 970-468-2740

Mobile: 970-409-7779    

Web:www.tylermacguire.com

         

“Your Guide to Summit County Real Estate”

Disclaimer: The information contained herein is based solely on MLS data.

We found the condo we want BUT there is a $10,000 assessment!!!

           After searching for a condo for months, you finally find the place that is exactly what you are looking for only to find out there is a $10,000 special assessment to be paid over the next two years…now what?  First of all, you may consider looking for another condo and even if you have this one under contract, you can likely get out of the contract without being in default.

            For the sake of argument, let’s assume that you have to have THIS condo and don’t want to search for another one.  Your first and easiest option is going to be to make a fair offer on the property but, state that the seller will be responsible for paying the special assessment at closing.  In a buyer’s market this tactic may work especially if the seller has some equity in the home and is not taking a loss.  Your next option would be to determine how much you are willing to pay for the condo and subtract the $10,000 dollars from that number.

            Now assuming you are getting a loan on the property, it is advantageous to have the seller pay the special assessment even if it means a higher purchase price.  If you were to buy the condo for $400,000 and pay the assessment yourself, (assuming 20% down at 5% per year) you would have a monthly principal and interest payment of $1717.83 plus $5,000 a year in assessments for the next two years.  On the other hand, if you paid $410,000 and had the seller pay the assessment your monthly principal and interest payment would go up to $1,760.77 ($42.97 more per month).  When you consider the extra $42.97 a month, it will take 232 months (also known as a little over 19 years) before you have actually paid the $10,000 dollars.  Accordingly, if you don’t plan to own the property for at least 19 years this will be the cheapest solution for you.

            If you would like more advice on how to save money on your next real estate purchase or have questions about this information, please contact me anytime at the information below.

All the best,

Tyler MacGuire  e-PRO®, SFR

Broker Associate

Omni Real Estate Company

Office: 970-468-2740

Mobile: 970-409-7779    

Web: www.tylermacguire.com

       

“Your Guide to Summit County Real Estate”