Summit County’s real-estate market depends in large part on second-home sales, a sector that has been hit especially hard by the credit crunch. The supply of jumbo loans needed to finance second homes dried up as the bubble burst. However Colorado is one of the key growing markets. In Breckenridge the long-term outlook is extremely bright. Based on several factors like a strong housing rebound in California and incentives from the economic stimulus package.
A general improvement in the credit climate overall would help, and the government could also step in by having the federal reserve buy jumbo loans. it looks like Summit County might avoid some of the worst impacts seen in Pitkin County. The Aspen Times reported that there is a “potential sea of unbuilt or half-built buildings” at Snowmass Village, where developers suspended work, citing an inability to secure financing. Construction on the partially built Little Nell Residences Snowmass stopped last week for the same reason, according to The Aspen Times.
Some sellers are approaching the market with a positive attitude, realizing that they may not get quite as much as they would have a year ago, but that they are still getting a good return on their initial investment.
Posted by: Jeffery McClintock
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