Excerpt from: Ski Resort Market Trends and Statistics
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| March 31, 2009 | | Timing the ski resort real estate market | When it comes to Steamboat Springs Real Estate (or any other ski resort real estate), there is a debate going on with regard to whether now is a good time to buy. With mortgage interest rates at record lows, and home prices low, it seems like now is a good time to jump in and buy. However, some are saying that you should wait until the real estate market bottom.
The problem is that the bottom might already have been reached. Even if prices fall further, you might not get the best deal. Cam Boyd, at Prudential Steamboat Realty, offers this realistic scenario for purchasing ski resort real estate:
Example of Current Market:
Property price (financed): $200,000
Interest rate: 6% Monthly payment: $1,199
Scenario #1- Property prices fall 5%, Interest rates increase 0.5%:
Property price (financed): $190,000
Interest rate: 6.5%
Monthly payment: $1,201
Scenario #2- Property prices fall 10%, Interest rates increase 1%:
Property price (financed): $180,000
Interest rate: 7%
Monthly payment: $1,198 As you can see, there isn't a lot of difference, since interest rates are unlikely to fall much further even if home prices continue to drop. Depending on what you think will happen, it might be best to take advantage of the current real estate market and buy now.
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