Vail Daily column: Every purchase is a leap of faith
I am super nervous to buy property right now with the big changes coming politically, that will of course have financial manifestations. I think the economy could get a lot better … or a lot worse. I realize we are all in the same boat in uncharted water, but, of course I am looking for a little insight. We have been talking for years about getting a second home in the valley, and now I think the prices might be at their peak and could possibly drop like a rock, in which case I would be better off waiting a little longer. Your thoughts?
Dear Super Nervous,
We are in an interesting moment in history, but we have been there before and will be there again as the years go by. Life goes on, always. Let’s look at your hopes, and fears. I am not sure if you are hoping the economy will get better so you will feel confident spending your money, or worse, thinking prices might drop and you will get a better deal. The interesting phenomenon in the Vail Valley pricing is that prices do not necessarily go down in a down economy, if the price is a million or more. Most of the Sellers do not have to sell, so they either don’t lower their price or they take the property off the market until prices get better. Luxury home Sellers are usually savvy investors, so if the market will go up in the future, they will raise their price. Also, you need to consider if you are getting a loan what the interest rates might be when you finally get ready to buy. The rates are still excellent, but have gone up about a point from last year and they could certainly go up more in the not to distant future. Lastly, and maybe most important, is the enjoyment factor. No one is promised tomorrow, so maybe you might think about how wonderful it would be to have your own place to start enjoying right now. The fun and family memories can be, as they say, priceless. Experts spend much of their time figuring out how the stock market and economy in general will do (go up or down) and then they make their investments accordingly… and they are still wrong a fair amount of the time. I do not know if the economy is going to continue to get better for the next several years (my best guess) or if it will falter and make small or large corrections, but I do know that this Valley will continue to be exquisitely beautiful and offer fabulous fun opportunities, winter and summer…so you do have that guarantee. Every real estate purchase involves a small or large leap of faith. You will know when you are ready, but I wouldn’t wait too long. Best of luck!
Joan Harned is an owner/broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team. Harned has been selling real estate in Eagle County for 27 years, is a past chairman of the Vail Board of Realtors, past Realtor of the Year, past director on the Great Outdoors Colorado Board and a member of the Luxury and Land Institutes. Contact Harned with your real estate questions at Joan@TeamBlackBear.com, 970-337-7777 or http://www.SkiAndTeeHomes.com.