Pressure on the U.S. economy already has buyers and sellers of popular Summit County Colorado real estate doing a promenade, mixing up the dance circle a bit. As prices for some Breckenridge CO homes have fallen a bit, we have unusually large inventory for real estate in Breckenridge, Silverthorne CO homes, Keystone CO real estate, Dillon, Frisco and rural areas of both Summit and Park counties.Â
Although the movement of real estate in these Breckenridge environs will inevitably be affected by this month’s bailout, it is only a Band-aid. Scenarios that reflect the national market are generally modified in the resort areas where buyers tend to have better credit ratings and financial stability.
The Victorian Town of Breckenridge and Breckenridge Ski Resort are top destinations for skiers and vacationers visiting the Rocky Mountains in Central Colorado. The former mining town features interesting historic elements including museums and gold dredging equipment, a quaint downtown with Main Street restaurants, shops, and events, and, of course, skiing on Peak 6, Peak 7, Peak 8, and Peak 9, and infinite recreational possibilities in the Gore Range, Continental Divide, and national forests and rivers in the surrounding areas.
Real estate coach Jeff Scislow of Minnesota suggests that the emphasis now be put on selling down the high levels of housing inventory across the nation. Scislow recommends that the U.S. Government stop agreeing to hard-to-swallow bailouts. Instead, he proposed that the government subsidize interest rates, temporarily taking them down to unprecedented levels. Â
According to Scislow, subsidizing very low interest rates will immediately take the pressure off of the banks and the economy. The progression of positive results includes:
    1. The inventory levels will drop.
    2. As inventory levels drop, prices will stop falling.
    3. As prices stop falling, less people will foreclose on their homes when they see market values firming up.
    4. Consumer confidence will return.
Bailing out banks is expensive considering that the average foreclosure costs the banks about $70,000. However, the cost for the U.S. Government to subsidize interest rates at levels like 3.5 to 4 percent for 30-year fixed mortgages would only be $25,000. Buyers and investors will see that it is a great time to purchase properties and to keep those properties for longer periods of time, locked into the low interest rates that are available for a limited time only.
Sounds like an exciting piece of the puzzle. For answers to your resort real-estate questions, call Jonna Beardsley at 970-390-2533.
