Much of our local real estate market remains slow, with expanded inventories and a decline in the number of transactions. At the lower end of the market where purchases tend to be more tied to local buyers and mortgage availability, much of the buying action has been within the bank-owned foreclosure market. The middle of the market, homes priced from $300,000-$600,000 has also been relatively quiet. There is an abundance of inventory and while mortgage money is available, for loans above $427,000 buyers find themselves in the jumbo category where they are penalized with higher interest rates and tougher qualifying guidelines. These conditions coupled with the impaired markets of California and Arizona have greatly reduced demand for homes in this price range.
While these circumstances are disappointing, we are pleased to share with our readers that we have had a significant uptick at the upper-end of our market. Last week we closed on the sale of a home within Hidden Valley Ranch that had been listed at $2,400,000. Our firm represented the buyers, a couple from the Houston area that acquired the home as a family vacation residence. Next week we are expecting to close on the sale of a small ranch with a log home and a detached guest cabin situated on 112 acres. The property is listed at $1,750,000. We also just placed a homesite under contract within Hidden Valley Ranch that was listed at $599,000. It is scheduled to close during December. This activity is very encouraging because it shows that high net worth buyers have confidence in the future value of our area. We share that confidence and feel certain that buyers will return to the other price ranges as the recovery of the overall economy gains more traction.
We also want to thank the folks that referred this most recent business to our office. We have found the recommendations of others to be the most effective means of advertising for our business. We continue to be able to provide our high quality real estate service during lean times because of the support of our clients, customers and friends.
If you have any questions or comments related to real estate in Southwest Colorado, please drop us a line or give us a call. Thank you, Mike Heraty, Managing Broker/Owner.