resortrealestate

The Federal Reserve is doing its best to invigorate the housing market and its current plan is to invest an additional $750 billion into Fannie and Freddie.  The influx of cash into the mortgage market is expected to drop interest rates even further, making 30 year fixed rates to be 4.5% or possibly even lower.  This move by the Federal Reserve will make property less expensive and create a great deal of opportunity for those looking to invest in real estate .   According to a recent article by Kenneth Harney “rates in the mid-four percent range or lower could even put upward pressure on selling prices. That’s because when you lower the monthly cost of borrowing to buy a house, you make it more affordable, even at a slightly higher price.”  The Federal Reserve is doing what it can to revitalize the real estate market , let’s see if it builds the confidence that buyers need to jump in.

This move by the Federal Reserve will definitely affect resort real estate as well.  People looking to buy second homes will be in a great position, low housing values will be even lower in the long run with such low interest rates.  If you have been waiting for the right opportunity to purchase your vacation home now just might be the time.

A friend of mine was in Deer Valley last week staying in a ski-in/ski-out four bedroom home that was on the market 2 years ago for $2.5 million.  Today the same ski-in/ski-out house is on the market for $850,000, granted it’s a short sale but still, what a bargain!  What a drop in price!  People in other areas are complaining about 20% drops in price, this is nearly a 66% drop in price.  What does this mean?  To me it means if I had the money I think I’d be heading to Deer Valley.  Seriously though, this economy is tough and tough on everyone but for those who still have money and have always wanted a second home there couldn’t be a better time to look than now.  Real Estate is a good place to put your money and if you own your home, why not buy a second home in a place where you want to spend time?  Most people dream of having a second home at some point in their lives why not make the move while the market is at the lowest.