Recent economic factors affecting the real estate industry now work together to create an excellent environment for commercial real estate investment in luxury properties.
With increasing evidence that the economy is stabilizing and employment growing; home values increasing nationally; and mortgage interest rates remaining low — we are presently seeing lighter commercial lending restrictions which encourage savvy luxury home buyers to invest in Vail Valley real estate.
Let’s consider a few of the contributing factors that make now a good time for savvy luxury home buyers to invest in Vail Valley real estate:
Housing Prices and Rents are Up
Housing prices are up from recent low levels, but rents are rising, too, making the luxury home investment even more attractive as an income source. Truliablog.com says rents are up by 5.1% year-over-year – and rising even in markets where home prices are falling. In fact, rents have increased in 24 of the 25 largest rental markets, indicating that purchasing a luxury home as an investment property may be an excellent investment.
Lighter Commercial Loan Lending Restrictions
Lending restrictions for commercial real estate loans are lifting slightly, in response to positive economic trends. Blog Credit.com says, “About 45 percent of bank credit officers say demand for commercial real estate loans increased “notably” in the third quarter of the year…”
Foreclosures are falling in non judicial foreclosure states. Colorado law allows residents to elect to follow either a judicial or a non judicial foreclosure process. According to npr.org, “Overall, foreclosures in non-judicial states fell by 29 percent between July and September of this year, compared with the same period last year, according to RealtyTrac, a private company that focuses on foreclosures.”
RealtyTrac.com also reported improved third quarter foreclosure numbers for Colorado, saying that 20 of the 24 states (where the non-judicial foreclosure process is primarily utilized) reported annual decreases, including Colorado with a 21 percent decrease in the third quarter.
Are you a savvy luxury home buyer seeking to invest in Vail Valley real estate?