Builders Add Escalation Clauses to Offset Lumber Prices

To help protect themselves from ongoing price increases in the lumber market, more builders are adding escalation clauses to their sales or construction contracts.

The rising and volatile costs of lumber continue to hamper the new-home and remodeling markets. Lumber prices nearly doubled over a four-month period in 2020 and have continued to reach new highs. The price and availability of building materials have been cited as one of the top challenges that homebuilders face at a time when the real estate industry is calling for more housing inventory to meet surging buyer demand.

https://magazine.realtor/daily-news/2021/04/23/builders-add-escalation-clauses-to-offset-lumber-prices

Sales of luxury homes skyrocket in first quarter

Sales of luxury homes rose 41.6% year-over-year in the first quarter of 2021, crushing sales of affordable homes (7% increase) and mid-priced homes (5.9%), per a recent report from Redfin.

Redfin defines “luxury” homes as selling for an average of $975,000, “expensive” homes as selling for an average of $429,000, “mid-priced” as selling for an average of $272,000, “affordable” as selling for an average of $184,400, and “most affordable” as selling for an average of $99,000.

The study showcases both sides of the COVID-19 crisis, with affluent Americans taking advantage of low mortgage rates and the ability to work from anywhere, and buying up high-end houses — particularly in popular vacation destinations. Meanwhile, many lower-income Americans have lost their jobs and lack the means to become homeowners.

https://www.housingwire.com/articles/sales-of-luxury-homes-skyrocket-in-first-quarter/

Planning commission gets first look at proposed Breckenridge Grand Vacations development

 

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The proposal presented to the planning commission is a master plan for the three lots featuring condominium, townhome, commercial, hotel and workforce housing uses. The plan addresses roadway and pedestrian improvements, including a roundabout at the intersection of Park Avenue and French Street and a parking structure on the North Gold Rush Lot. A gondola is proposed to accompany the parking structure to transport people from the parking garage to the North Gondola Lot.

Kulick said the recommended use of the North Gondola Lot is lodging or commercial uses per the land-use district. The Breckenridge Grand Vacations project proposes townhomes and three mixed-use buildings on the lot. The recommended use of the South Gold Rush Lot is residential, and townhomes are proposed. The recommended use of the North Gold Rush Lot — which is where the 1,150-space parking structure, gondola and workforce housing units are proposed — is also residential use.

The proposal presented to the planning commission is a master plan for the three lots featuring condominium, townhome, commercial, hotel and workforce housing uses. The plan addresses roadway and pedestrian improvements, including a roundabout at the intersection of Park Avenue and French Street and a parking structure on the North Gold Rush Lot. A gondola is proposed to accompany the parking structure to transport people from the parking garage to the North Gondola Lot.

Town planner Chris Kulick said the site is one of the largest undeveloped tracts in the center of town. He explained that the proposal came in the form of a master plan so that the project could be evaluated in one go rather than separate phases of evaluation of the three parcels.

One year later, Dillon’s Uptown 240 development remains stalled

 #Dillon #Colorado

It’s been a year since work stalled on the Uptown 240 development in Dillon.

The project, which broke ground in summer 2019, was put on hold because it lost financial backing due to the pandemic. According to previous reporting by the Summit Daily News, the financial group that supported the project faced hardships due to COVID-19 and was no longer able to continue with development.

In the months following, Danilo Ottoborgo, who will serve as the owner and operator of the complex along with family members, has worked to secure capital. Ottoborgo would not confirm details Tuesday about whether the project had financial backing and said only that construction would resume “soon.”

He would not provide any other updates.

Ottoborgo previously told Summit Daily that construction was supposed to resume in November and then again in February. He declined to answer why the project was still on hold or when it was expected to be completed.

https://www.summitdaily.com/news/local/one-year-later-dillons-uptown-240-development-remains-stalled/

April Real Estate News and Update

 

​ Nancy Yearout's Real Estate News & Market Update:  April 2021   Breckenridge Frisco Silverthorne Dillon Keystone Copper Mountain  It's Springtime in the Rockies... Mountain Homes Spotlight ​ Main Street Station  ​The perfect blend of coziness, luxury and location. Graciously appointed studio is turnkey and ready to enjoy with vaulted ceilings and a quiet location near the end of the hall..  $485,000 - Studio with 1 Bath ​​Learn More ​​​ Columbia Lode Sub Perfect location that backs to Columbia Lode common area. Park your car (s) in the garage and walk across Main Street to the Breck Connect Gondola for World-Class skiing.  Stroll downtown for boutique shopping and gourmet dining. Stunning Ski Area and 10 Mile Range views light up this luxury home. $2,800,000 - 4 Beds with 3.5 Baths  ​​ Learn more March 2021 Stats  (Click Video below to View All Slides)​ Fun March & 1st Quarter Stats  The Average Sold Priced Jumped 16% for the 1st Quarter. The Number of Sold Properties surged 52% for the 1st Quarter. 2021 1st Quarter sales were the 3rd highest, ever! Inventory of properties to buy is down 76%. The percent of the list to sold price is the highest it has been in years, if not ever! March 2021 Sales were the highest ever for March of any year.  View the monthly March sales from 2005 to 2021 in this chart. Market Statistic Details: History of Sales & Average Sold Prices 2004 - 2020, Condominium Sales by Town, Single Family Home Sales by Town, Residential Sales by Town. Nancy Yearout Broker Associate RE/MAX Properties of the Summit 970-485-0293 nancy@buyinbreckenridge.com buyinbreckenridge.com RE/MAX Properties of the Summit  Source: Sold Data from SAR MLS.  Stats pulled on 4/5/21. *SAR MLS Data  Annual sales 1/1 through 12/31.*Residential Sales (home, Condo, Townhome & Duplex),  Sales for Jan, Feb & Mar. Change is Year over Year 2021 vs 2020. **The information contained herein is based on information provided by others. Accordingly, we make no  guarantee of its accuracy and suggest you make an independent inquiry of any matters you regard  as important.  ​

Breckenridge considers hosting Fourth of July parade after last year’s cancellation

Breckenridge is tentatively moving forward with planning for a Fourth of July parade.

Mayor Eric Mamula said that as opposed to the normal parade format where people stand close together, the parade could be set up to physically distance people. He noted that the town’s mandatory mask zone will likely be removed by July 4, but if the event happens, attendees would likely be required to wear masks. Mamula added that the county’s vaccination rate should be “pretty high” by July. Bergeron countered that while the county could have a high vaccination rate, the percentage of vaccinated visitors could be low.

https://www.summitdaily.com/news/local/breckenridge-considers-hosting-fourth-of-july-parade-after-last-years-cancellation/

Looser mortgage credit may give first-time buyers a chance

 

Mortgage credit showed signs of loosening up in March, and with it, more availability for lower credit scores and high LTV products to enter the housing market, the Mortgage Bankers Association said in a report on Thursday.

The group’s Mortgage Credit Availability Index rose .6% to 125.4 last month, a positive indicator after pandemic-driven factors plunged the index from record highs previously seen in late 2019.

Measuring mortgage credit availability by loan type, the Conforming MCAI that tracks loans backed by Fannie Mae and Freddie Mac rose .02%. The Conventional MCAI that measures loans not backed by the government gained .8%.

The Government MCAI that includes mortgages backed by the Federal Housing Administration, the Veterans Administration and the U.S. Department of Agriculture increased for the sixth time in seven months to its highest level in a year – up .4%, the MBA said.

Most notably, the Jumbo MCAI measuring high-balance loans rose 1.5%, also increasing for the sixth consecutive month. It’s an indicator that the non-QM sector is showing a strong rebound after many lenders pulled back from jumbo products in the first half of 2020.

https://www.housingwire.com/articles/looser-mortgage-credit-may-give-first-time-buyers-a-chance/

Here’s how to fix the housing market inventory crisis

 

The U.S. housing market is in the midst of an inventory crisis. The number of homes for sale in the U.S. is hovering near record lows, caused by a pandemic-induced housing inventory death-spiral.

At the same time, home sales have soared close to record highs, suggesting the housing market suffers exclusively from a supply (and not demand) problem. Thus, federal policies must focus as much on increasing housing supply as boosting demand.

Rolled out in isolation, first-time homebuyer tax incentives (FTHB) – such as the Biden Administration’s proposed $15,000 advanceable FTHB credit – are only likely to make housing inventory scarcer and prices higher. Instead of just bolstering demand, policies that focusing on increasing supply – such as tax incentives that encourage owners to sell and builders to build – is what the U.S. housing market desperately needs.

https://www.housingwire.com/articles/heres-how-to-fix-the-housing-inventory-crisis

Vaccines, Stimulus Are Fueling Seller Optimism

 

Americans are more upbeat about the idea of selling, particularly as the vaccine rollout continues and latest round of stimulus checks are distributed. That could come as hopeful news as many markets face severe housing shortages and buyers are increasingly being left with few choices of homes for sale.

Fannie Mae’s Home Purchase Sentiment Index rose by 5.2 points in March to a reading of 81.7. The components on the index that increased the most last month related to home selling and buying, household income, and home prices.

Here’s a closer look at indicators from March’s Fannie Mae’s Home Purchase Sentiment Index, reflecting responses from nearly 1,000 consumers over the housing market:

• 61% of consumers said it’s a good time to sell, up from 55% in February.
• 53% of consumers said it’s a good time to buy a home, up from 48% in February.
• 50% of Americans surveyed believe home prices will go up over the next 12 months, up from 47% the month prior.
• 54% of consumers expect mortgage rates to increase over the next year, up from 47% a month earlier.
• 82% of Americans say they are not concerned about losing their job over the next 12 months, unchanged from February.
• 25% of respondents said their household income is significantly higher than it was 12 months ago, up from 17% in February.

https://magazine.realtor/daily-news/2021/04/08/vaccines-stimulus-are-fueling-seller-optimism

The appraisal gap is complicating deals across the country

 

The home checked off every box on Linda’s list. It had a large, fenced-in yard, modern appliances in an updated kitchen, a “man cave” for her husband, beamed ceilings, a massive master suite and was located in a good school district.

The house, in the Nashville area, was listed at $405,000. Linda (who asked that her real name not be used) beat out a dozen other prospective buyers in a bidding war by offering $445,000 and waiving all contingencies. That’s common these days.

Unfortunately, the appraisal put the house’s value roughly $50,000 below than what she paid. With others waiting in line behind her, the seller wouldn’t budge on price. Linda had a sizable downpayment but still needed to find a way to close the appraisal gap. She received help from family members and was also able to take a loan out against her 401(k) to make up the difference. Linda plans to move into the new house later this spring.

But not everybody has the ability to tap friends and family or investments when the appraisal and the final sale price don’t match – many deals have fallen apart as a result, loan originators and real estate agents said. The gap between appraisal and what buyers are willing to pay in one of the wildest real estate markets in modern history has created friction between agents, lenders and appraisers working under stressful conditions.

One California-based real estate agent who originates her own loans told HousingWire that she believes appraisers are being far too conservative in this high-octane market, and are also using bad comps. She recently had a deal fall apart due to appraisal.

Breckenridge has officially been certified as a sustainable mountain resort destination

 

The town of Breckenridge was certified by Green Destinations, an internationally accredited certification body. It's the third destination in the United States to become certified through the program that is accredited by the Global Sustainable Tourism Council, following in the footsteps of Vail.  

The announcement was made Tuesday, April 5th, by the town of Breckenridge. 

Certification efforts include environmental stewardship, climate change adaptation, greenhouse gas reductions, cultural heritage protection, low impact transportation, waste reduction, public health and safety, workforce housing, and sustainability education. 

While home to nearly 5,000 residents, the town of Breckenridge sees more than one million visitors each year. Formerly a mining town, the installation of ski lifts in the 1960s turned sights toward tourism.

Notable past achievements include the preservation of 4,425 acres of open space, creation of a workforce housing program and fund, establishment of a child care tuition assistance program, and improvement of land use and development code protecting historical assets of the town.

Robert (Bobby) Chappell, Green Destination’s North American Representative says, “Breckenridge has a long history of sustainability good practice and were able to leverage that experience to design an effective destination management framework. Certification is recognition for that journey.”

“We are very proud of this Mountain Ideal Certification,” said Lucy Kay, CEO, Breckenridge Tourism Office. “Local lifestyles revolve around our incredible natural environment and residents are very passionate about how well we care for it. In addition, environmental sustainability is increasingly cited by travelers as being important in their destination decisions. This recognition means so much on so many levels.”

 

Nancy Yearout's Real Estate Market Update  March 2021 Breckenridge Frisco Silverthorne Dillon Keystone Copper Mountain  Happy Spring  ​ ​ ​ And before you check out the February stats below, check out these two great RE.MAX Listings...maybe one would be 'just right for you!​ ​    #1412 Main St. Station Condohas an ideal Breckenridge location that features easy access to the Peak 9 base area and our Historic Main Street. Plus, this graciously appointed studio has the perfect blend of coziness and luxury that is turnkey and ready to enjoy. Strong rental history makes this a great ski condo investment! ​​Click here for further Details​​​  384 Settlers Drive, is another ideally located Breckenridge property that's just minutes from the Peak 8 Base and is surrounded by protected open space with Nordic ski trails to snowshoe or nordic ski out your backdoor. Beautifully appointed and features a spacious great room on the Main floor with an additional family room on the lower level.  ​​​Click here for further Details​​​​​​ February 2021 Stats Detailed Statistics Links Below Market Statistic Details: History of Sales & Average Sold Prices 2004 - 2020, Condominium Sales by Town, Single Family Home Sales by Town, Residential Sales by Town. Mid - March 2021 Update Nancy Yearout Broker Associate RE/MAX Properties of the Summit​ buyinbreckenridge.com 970-485-0293 nancy@buyinbreckenridge.com ​​​​ RE/MAX Properties of the Summit  Source: Sold Data from Summmit Realtors MLS. *Summmit Realtors MLS Data  Annual sales 1/1 through 12/31. *Residential Sales (home, Condo, Townhome & Duplex),  Change is Year over Year or 2020 vs 2019 & 2021 vs                                                                 2020. **The information contained herein is based on information provided by others. Accordingly, we make no                                                                guarantee of its accuracy and suggest you make an independent inquiry of any matters you regard as important.