Will the real estate ‘bubble’ burst?
EAGLE COUNTY – Real estate sales have been hot across the country – too hot, some experts say – prompting the inevitable question of if or when the bubble will burst here.Some local brokers don’t believe the bubble will even form. “I think we are less susceptible here to forming a bubble or having one burst,” said Michael Slevin of Prudential Gore Range Properties. “There’s much speculation on both coasts and in Las Vegas,” Slevin said. “Here it’s less about speculation and more about a lifestyle and way of life.”This area is largely insulated from large job losses and other factors that can harm a market, Slevin said.The flow of money into the mountains remains steady, added Bob West of Hoffman-West Real Estate.”There seems to be a lot of wealth and capital looking for investment.” he said. “Financing is good and low interest rates are helping to create some wealth.”West said he doesn’t discount the possibility the real estate market slowing. He’s seen it happen here before, in the early ’80s.”If we had a bubble burst in our market, it will take us a long time to recover,” he said. “Nationally there are more vulnerable areas.”Slevin said he believes because this area attracts a broad spectrum of buyers, it is more diversified.Vail, Colorado