Steamboat Springs, CO Real Estate and Community Blog

If you are planning to purchase Steamboat Springs real estate and standing on the sidelines waiting for prices to fall, don’t bother. Go ahead and buy now.

I know what you are thinking: “What? I’ll lose money. I want to buy when the market bottoms out.” Besides the fact that Steamboat is holding up well as compared to other areas of the country, there is a purely financial reason to buy now. Interest rates are too low to pass up, and when they go up, you lose money.

Here’s the deal:

• If you plan on purchasing Steamboat real estate for the long term (say, five years or more),
• if you plan on financing and
• if you have good credit,

there is no reason to delay purchasing a home or condo because the inevitable rising interest rates will wipe out any gains you’ll get waiting for prices to come down.

If interest rates go up just 3/4 %, you’ll pay almost the same as if home prices went down 10%. Here is an example:

You have been interested in purchasing a place in Steamboat Springs for $500,000. You plan to put down 20% and finance the rest with a 30 year fixed-rate mortgage at 5.5%. Your monthly investment would be $2271 a month.

Now let’s assume the real estate market in Steamboat takes a turn and the home you wanted to buy is now worth $450,000. But the economy has gained strength, and the Fed decides to raise interests 0.75% to 6.25%. Your monthly investment would now be $2,216 a month.

So if you are looking for a place to call your own in Steamboat Springs, now is the time to do it before interest rates go back up.

Call Eliese Pivarnik at (970) 819-6372 for information on Steamboat Springs, Stagecoach, Oak Creek, North Routt, and Hayden real estate.