Vail Custom Homes Selling Despite Higher Interest Rates

Edwards, CO (PRWEB) August 10, 2006

The National Association of Home Builders said, U.S. home-builder optimism plummeted to its lowest confidence level in more than 14 years this month, as buyers canceled sales contracts and investors continued their exit from housing. The robust sales in Colorado of just one year ago are slowing now as they are in all areas of the country, mostly due to a rise in interest rates and over-inflated home prices.

Sentiment among custom home buyers in the Vail, Colorado area is mixed. Strong sales are continuing in the custom built home market in places like Vail Valley, where high-end homes are built and sold every day. Vail custom home builder,[ ]J.P. Sunderland, has custom projects stacked “back to back,” while other Vail area builders who specialize in smaller low-end houses and condos are getting hold orders and cancellations. Sunderland has been a Vail custom home builder since 1980.

“In Vail, and in other parts of the country, there is an ongoing concern about where the housing market is going,” said NAHB Chief Economist David Seiders. The luxury home market in Vail however is still quite strong in the wake of the current interest rates, high oil prices, and other financial strains on investors. Custom homes starts account for about 12% of the total homes sold in Vail Valley last year.

The Dow Jones U.S. Home Construction index fell to a two-year low of 547.84 following the recent NAHB report. They suspect the negative buyer and builder sentiment is largely based on concern over interest rate policy of the Federal Reserve, which last month raised its target rate a 17th consecutive time since 2004.

The vast majority of buyers out there are weary of yet another rise in the interest rates and its effect on home loans. A one point rise can mean thousands in increased mortgage payments so it seems average home buyers are waiting for rates to level off, or drop again before signing on the bottom line.

For more information about building a custom home in Vail Colorado, contact SunderInc – Vail Builder Since 1980.


Tags: , , , , , , ,

Comments are closed.

CIGI Experts Outline Prescriptions for Cannes Summit and Beyond in Special Report on G20 Issues

Waterloo, Ont. (PRWEB) October 20, 2011 With a possible euro zone collapse and Greek insolvency likely to dominate the upcoming [...]

Pathways Home Health and Hospice Satu Johal Receives CFO of Year of the Year Award; Silicon Valley Business Journal Honoree

Sunnyvale, California (PRWEB) December 02, 2011 Satu Johal, CFO at Pathways Home Health & Hospice, received the Silicon Valley Business [...]

Latest Financial Regulation News

Working Together Towards Better Financial Regulation and Stability in Asia Image by Asian Development Bank Tellers attend to clients in [...]

European financial regulation – 4 questions to Olivier Garnier (Societe Generale)

Olivier Garnier, Chief economist at Societe Generale Group, expresses his view on European financial regulation and its reform. Video interview [...]

AMS Health Care Mortgage Corporation Provides Debt Service Savings to Hospitals Utilizing FHA 242 Mortgage Insurance Program

Jacksonville, FL (PRWEB) August 30, 2013 An oft-overlook and relatively unknown federal program for hospitals seeking capital for needed and [...]

Vermont’s Captive Insurance Industry Off to Best Start Since 2005

Montpelier, VT (PRWEB) April 16, 2012 First quarter licensure of new captive insurance companies is off to a strong start [...]