Colorado’s appeal of natural beauty and its outdoor lifestyle continues to draw in buyers beyond the metro areas. Summit County is recognized as Colorado’s playground and from the beauty of its lakes, trails and playfully curated main streets, it’s no wonder why. The county is home to the postcard perfect snow-covered towns of Frisco, Silverthorne, Breckenridge, Blue River, Dillon, Keystone, Heeney and Montezuma.

Summit County realtor Mike Kelley explains that for individuals trying to get away from urban areas, Summit County offers an escape into nature without the loss of amenities. To gain a better idea of the trends specific to Summit County, I asked a Summit County local and lender who has worked and raised his family in Summit County for over 20 years.

According to a recent CNET article by Alix Langone, the data analytics firm Corelogic reported that millennials had applied for more mortgages than any other generation in 2021. Of these applications, including those approved and unapproved, over 50% of applicants were between the ages of 26 and 41.

However, Principal Economist for CoreLogic, Archana Pradhan reports that millennials have maintained the lead in home purchase mortgage applications since 2016. Pradhan explains how millennial homebuyers are dominating the high-tech and Midwest metros, including Denver, which CoreLogic lists among its “Top 15 Metros with Highest Millennial Home Purchase Applications Share.”

Loor: What was your experience with the market during the pandemic and up until now in Summit County?

Noble: Even with the uncertainty with the housing market, home prices in Summit County were never stagnant; values continued to go up. When lockdown started, realtors could not show properties. This of course did not last long and when things did open there was even more demand. I would say our market was on fire. This is what it has felt like since the middle of 2020. The Summit County real estate market has felt chaotic, it has been going that strong. I originated more Jumbo loans in 2020 than ever before.

Loor: With remote work becoming more prevalent and shifts in work-life balance, did you see more out-of-state buyers than in previous years?

Noble: It was truly eye-opening to see how many people could work remotely. I know everyone experienced this, but it was surprising for this to happen overnight. This impacted my business. I think the change I noticed was that new clients who were younger professionals were excited to buy their first house in Summit County. And these were people working for the big San Francisco tech companies now wanting to be in Colorado. So, before COVID, there was definitely a need to be closer to headquarters. When people realized they had a new freedom, they were ready to move. We continue to see an excess demand from across the nation.

Loor: What has the home buying process been like for you?

Noble: I’m lucky, I bought my first condo in 2000. It was at Treehouse in Wildernest and when I showed it to a buddy of mine his comment was, “this looks like it was decorated by Elvis.”

It was definitely a bachelor pad. I thought it was cool even though it was up 3 flights of stairs. It was a great first place. Shortly after, I sold the condo and moved up to a Townhouse. The townhouse had great views of Buffalo Mountain.

In 2003, I bought a single-family home. I was really lucky because my purchase price was $385,000. And at the time, that seemed really expensive. From my personal experience, I encourage people to buy when they are young. It’s common we see gifts for down payments from family members. For first time homebuyers, there is a 3% down payment home option. After that, the minimum for a second home purchase is 10% down. I encourage people to look at their options to get into this market. We continue to see rent costs rising. Yes, you probably don’t want to walk up 3 flights of stairs to a condo, but it can be a great investment. I’ve done loans for clients who have been able to sell and keep upgrading.

Loor: Is inventory or being priced out of the market the biggest challenge in areas like Summit County?

Noble: It really is an issue. Not many locals can afford properties over $900,000. And it is typical to see single family homes now to go for over $1,000,000. I had local clients buy a new property just over $900,000 earlier this year. They put 10% down and were concerned about keeping their payment at $4,000 per month. They told me an equivalent house for their family of 4 would have cost them $4,500 in rent. I think this example shows what is happening with our prices.

Locals are still buying in Summit County. There are still ways this can be done. The other options are buying a deed restricted property. You have to be approved by the Summit County housing authority to do this. The properties start at a lower purchase price, generally around $500,000. There are options above and below that price depending on the size. Deed restricted means there is generally a 3% appreciation cap. These can be great local neighborhoods. The other option I see are locals moving to a neighboring county to find cheaper real estate and commuting.

Loor: What’s the best advice you have for first time home buyers?

Noble: Save, save, save. That is what is most important. I always recommend a 3% down payment. On top of the down payment, there can be $5,000 in closing costs. These are not all my fees. You also have to pay things like insurance, tax escrows and interest at closing. Check your credit score for free online before you are ready to buy. Balances you charge on your credit cards need to be at or below 30% of the credit limit. People don’t realize this credit usage counts for 30% of your credit score. This means, if your credit cards have very low limits, you should not charge much on them.

Loor: What advice would you offer anyone looking to invest in a second home?

Noble: Spend time in the area before you buy. I recommend this so you know you want to spend time at your second home. A second home can be a great investment. And many of my clients rent their property out when they are not using it. Underwriting does allow you to call the loan a second home and rent it out, with some restrictions.

Run the numbers. Make sure it makes sense to you. Real estate should be a long-term investment.

I love Summit County; I have lived here for more than 20 years. It is a pretty amazing place. I think there is something for everyone even if you don’t ski. There are still endless recreation options.

Loor: What are the biggest factors to consider in refinancing, and when would you advise against it?

Noble: Closing costs. Generally, it is better not to pay points and keep your closing costs lower on a refinance.  Before you refinance, you should run the breakeven analysis. This is the monthly savings divided into the closing cost. I have seen really good numbers around 24 months or less for the breakeven. Each situation is unique, so look at the numbers. Sometimes it makes sense to refinance when you are lowering the rate 0.5%, and sometimes the difference in rate needs to be 1.0%.

Loor: For buyers who aren’t able to purchase at this time in Summit, what advice would you give them?

Noble: Get in touch anyway. Sometimes it’s surprising, some things just work out. If now is not the right time, we can make a strategic plan. I always recommend saving for down payment. Contact me for a personalized mortgage calculator.

Loor: For those wanting to get a local’s experience, which spots should they check out?

Noble: Outer Range Brewery in Frisco has amazing beer and Thai fried chicken. Timberline Craft Kitchen in Silverthorne for brunch and Bloody Mary’s. Bistro North in Dillon, fine dining with a great Happy Hour. Broken Compass in Breckenridge. And one of my favorite summer places to sit outside is Dam Brewery.