The midvalley - there is no better place to be this time of year. From
Basalt to Carbondale, locals and tourists alike are enjoying the
vibrancy of our area. From the great restaurants and shops to all the
activities and festivals, there is not enough time in the day to take
advantage of everything offered. This has not gone unnoticed as
evidenced by National Geographic Adventure magazine's recent naming of
Carbondale in their No. 3 slot as the "Where to Live & Play Now:
The 50 Next Great Towns." And we get to wake up here every day - lucky
us.
I am frequently asked about real estate here in the valley and how the
economy and lending issues are affecting business. In the
Basalt/Carbondale market, we are seeing a lower dollar volume of
transactions than this same time frame in 2007 (according to Land Title
Guarantee Company, Garfield County has a year-to-date figure of -22.19
percent), and certainly more inventory. But that doesn't make the
market a bad one; it is still a market that provides opportunity for
both buyers and sellers. And the latest information from Land Title
notes that June leads the year with the highest dollar volume
($53,950,900) and largest amount of transactions (77).
The midvalley is growing each day and poised for further growth.
Several new projects include Willits Bend, Shadowrock, Colorado Place,
Mountain Sage Townhomes, Keator Grove and Calicotte Ranch. There are
several other projects in the pipeline, as well and our area will
continue to attract future locals, second homeowners and investors.
We all know that every buyer wants to buy at the bottom of the market
and every seller wants to sell at the peak of the market. But just like
in the stock market, it is probably not best for the majority of us to
try to time those peaks and valleys. As David Bach, author of the
"Automatic Millionaire," notes "don't worry about timing the market in
real estate, it is time in the market that will matter for you." He
also notes that "realistically, the best investment you will ever make
will be your home." Over the last 30-plus years, nationally real estate
has appreciated a healthy 6 percent per year. In our valley, we have
seen years of appreciation that are in the double digits and then
expect each year to follow with appreciation at that same
level.
There is certainly no question that it is better to own a property
rather than rent it. Not only are you enjoying the property (or getting
rental income from it), but you have the possibility of appreciation,
and you can get the tax benefits of home ownership (from allowing you
to deduct your mortgage interest, mortgage insurance and property taxes
to exempting capital gains taxes on your primary residence). So if you
are a buyer, and especially a first-time buyer, this is a great time to
buy.
It is also a great time to "trade up." You may get a little less on the
sale of your existing property, but will even the score on your new
purchase ... and you'll have a home that works better for you and your
family. For the second homeowner, you know you love it here. Buy into
the lifestyle now, or upgrade to ensure that your growing family has a
foothold in this area before the prices get any higher. And for
investors, so much is happening in our valley and rental rates are
through the roof (with fewer and fewer rental properties in the fold
each year). In my opinion, this next six- to 12-month window offers
great opportunity in either an existing property or one of the new
projects coming on line.
I hear from sellers frequently that are lamenting the fact that they
should have sold six months ago. Yes, there is more inventory, so
buyers do have the ability to pick and choose and negotiate more than
they were able to six to 12 months ago, but that does not mean that the
seller still will not make a good profit on a purchase they made. And
if they are buying another property (just about anywhere in the
country), they will see that decrease in what they would have made come
back to them in the purchase of their new property! Considering the
political climate, the capital gains tax exemption may not be around
forever.
Interestingly enough, we are seeing properties that are unique still
going for top dollar. In fact, in the first seven months of this year,
we have seen the highest price on several home sales in different
neighborhoods: Basalt Highlands ($3.4 million), The Roaring Fork Club
($3.35 million) and River Valley Ranch ($3.5 million) to name a few.
So the competition and availability of similar properties will affect
your price of sale. Consult your real estate professional to determine
a selling price, not a "wishing-upon-a-star price."
When speaking with a broker, remember, it is not the broker that
promises you the best price that you should choose, but the one that
provides you with the best marketing plan to get that property
sold.
Your broker is a valuable resource in a market like this - use their
knowledge, time and resources to educate yourself on the next best step
for you.
To quote Winston Churchill, "I never worry about action, but only inaction."
Jana Dillard is a top producing broker at Chaffin Light Real Estate in Basalt.
