Existing home sales hit fastest pace

Sales of previously-owned homes rose in September to reach their fastest pace in 2014, even though investors are leaving the market. That’s good news for regular people, who are enjoying low mortgage rates and decreased competition for homes.

Sales of existing-homes rose 2.4% in September to a seasonally adjusted annual rate of 5.17 million, according to National Association of Realtors data released Tuesday. Though at their highest pace of 2014, sales remain 1.7% down from a year earlier, when the pace stood at 5.26 million.

Rental Market Extremely Tight

Eric Gibson, property manager at Basalt Realty, states that the demand for rentals is high, and the number of units available is low, as we head towards the winter season here in the Roaring Fork Valley. As a prospective tenant, you need to be able to move very quickly

Interest Rates Observation

We asked a mortgage banker what the effect would be if interest rates rose by one percent. He said that, all other things being equal, a one percent increase in interest would reduce the purchasing power by over $53,000!

What this means is that you might be able to afford a $500,000 home now, but if rates increase by one percent,  you might only be able to afford a $447,000 home.

If you’re in the market, you should consider buying now, before the inevitable interest rate increase.

-Darryl Grosjean, Managing Broker, Basalt Realty

Interest Rates to Climb

Joanie Haggerty, broker and part owner of Basalt Realty, believes that interest rates will rise throughout the coming year. As a buyer this means that you might be able to afford a house NOW but might NOT be able to afford it next year. As a Seller, it means that you will have more buyers NOW then you will next year. Thus, it is an excellent time to list your property and as a Buyer buy NOW!”