Tag Summit County real estate

By Kelly Gafa, Colorado Real Estate Company

For the past few years, many homeowners have felt “locked in” to their homes because of the ultra-low mortgage rates secured during 2020 and 2021. With rates under 3% at the time, selling and purchasing another home often meant replacing a very affordable monthly payment with one significantly higher. This dynamic, known as the lock-in effect, has been a major reason housing inventory has remained so limited.

However, recent data and early signals from the 2026 market suggest that this trend may finally be starting to ease.

Today, mortgage rates have stabilized in the low-6% range, and an increasing number of homeowners now carry mortgages closer to current market rates rather than the historically low pandemic-era loans. In fact, recent analysis shows that the share of homeowners with mortgage rates above 6% now exceeds those with rates below 3% for the first time since the pandemic housing boom.

What does this mean? Simply put, the financial gap between an existing mortgage and a new one is beginning to shrink for many homeowners. While moving still requires careful financial planning, the penalty for selling and buying again is no longer as dramatic as it once was.

Another factor quietly influencing the market is time. Life events—such as growing families, job changes, retirement, or relocation—continue to happen regardless of interest rates. Many homeowners are also sitting on significant equity after several years of home price appreciation, which can help offset higher borrowing costs when moving to the next home.

For buyers, this shift could mean more listings and more opportunities entering the market as homeowners become more comfortable making a move. Even modest increases in inventory can reduce competition and create a more balanced environment.

For sellers, the conversation is beginning to change as well. Instead of focusing solely on the interest rate they might be giving up, more homeowners are considering how their current home fits their lifestyle and long-term goals.

While affordability remains a challenge and interest rates are still higher than pandemic levels, the market is gradually regaining the mobility it has lacked for several years. Waiting for the “perfect” rate may not always be the best strategy—especially when personal goals, equity gains, and lifestyle needs are part of the equation.

If you’ve been thinking about buying or selling a home here in Summit County, or another area of Colorado, but have been hesitant because of interest rates, this evolving market may present new opportunities. The local housing markets are beginning to move again, and understanding your options is the first step toward making a confident decision.

If you’d like to discuss what these changes mean for your specific situation, I’m always happy to help.

If you have been considering purchasing a second home or investment property in Summit County, you may have heard that financing these properties typically comes with higher interest rates and additional pricing adjustments compared to a primary residence.

That landscape is evolving.

There are now lending programs designed specifically to create more competitive options for second homes and investment properties — offering improved pricing flexibility while maintaining a streamlined approval process for qualified buyers.

As your local real estate resource, I want to make sure you are aware of these changes and how they may impact your buying power.

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Who These Programs May Benefit

Certain financing programs are particularly competitive for:

• Buyers purchasing a second or vacation home
• Real estate investors expanding their portfolio
• Owners looking to refinance an existing second home or investment property to improve their rate

Whether you are actively shopping or simply reviewing your long-term investment strategy, it is worth understanding what options are currently available.

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Potential Relief from Additional Pricing Adjustments

Traditionally, second homes and investment properties have carried added pricing adjustments that increase overall borrowing costs.

Depending on the loan structure and borrower qualifications, some newer programs may reduce the impact of those adjustments. Every scenario is different, which is why reviewing the details with a knowledgeable lender is essential.

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Flexible Loan Amounts

These programs often accommodate both conforming and jumbo loan amounts, allowing flexibility across a wide range of purchase prices — particularly important in higher-priced mountain markets like Summit County, Colorado.

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Why Staying Connected with a Local Lender Matters

Financing options shift frequently based on market conditions, regulatory changes, and investor appetite. What was true six months ago may not reflect today’s opportunities.

Working with a trusted local lender offers several advantages:

• Accurate guidance tailored to Summit County property types
• Insight into condo, HOA, and short-term rental nuances
• Clear communication between lender, agent, and client
• Faster, more coordinated closings

As your Realtor, my role is to ensure you are not only finding the right property, but also positioned with the right financing strategy to support your long-term goals.

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Let’s Review Your Options

If you are considering purchasing or refinancing a second home or investment property, I encourage you to stay proactive. Even if you are in the early planning stages, understanding today’s lending landscape can help you make confident, informed decisions.

If you would like to explore current financing options or be connected with a trusted local lender, reach out. I am happy to start the conversation and help you evaluate what makes the most sense for your situation.

Many Colorado homeowners are opening their assessment notices and asking the same question: How can my property taxes be going up when my home value hasn’t changed much at all?

For 2026, the answer has far less to do with market appreciation and far more to do with state-level tax policy changes that are now fully taking effect.

According to a 2024 report from the Common Sense Institute of Colorado, most homeowners across the state should expect property tax bills to rise by roughly 20–25% in 2026, even if home prices have remained relatively flat. Here’s why.

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1. Pandemic-Era Tax Relief Is Expiring

During the years immediately following the pandemic, Colorado lawmakers enacted temporary property tax relief measures to cushion homeowners from rapid increases in assessed values.

For the 2024 tax year, homeowners benefited from:

• A temporarily reduced residential assessment rate of approximately 5.7%, and
• A $55,000 subtraction from the taxable value of primary residences.

These measures helped suppress tax bills at a time when property values were rising quickly. However, they were never intended to be permanent.

As of the 2025 tax year (payable in 2026), those temporary discounts have expired.

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2. A New, Higher Permanent Assessment Rate Structure

Following the repeal of the Gallagher Amendment in 2020, Colorado lost the mechanism that historically kept residential assessment rates artificially low. Since then, lawmakers have been working to rebalance the system.

A bipartisan agreement negotiated during a 2023 special legislative session — and finalized through Senate Bill 24‑233 and House Bill 24‑1001 — created a new split-rate assessment structure:

2025 Assessment Rates (Payable in 2026)

• 7.05% for school district taxes
• 6.25% for local government taxes

This structure replaces the lower, temporary 2024 rate and represents a meaningful increase in the portion of your home’s value that is subject to taxation.

Even if your home’s market value has not increased, the taxable percentage of that value has.

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3. Why a 25% Increase Is Common — Even With Flat Prices

Property taxes are calculated using three primary components:

1. Market value of the property
2. Assessment rate (set by the state)
3. Mill levies (set by local taxing authorities)

While home price growth has slowed significantly across much of Colorado — especially in mountain and resort communities — the assessment rate jump alone is enough to drive substantial increases.

For many homeowners, moving from a ~5.7% temporary rate in 2024 to a blended effective rate closer to 6.25–7.05% translates to a 20–25% higher tax bill, before any mill levy changes are factored in.

This is why homeowners are seeing higher taxes despite relatively stagnant home values.

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4. Local Factors Can Push Bills Even Higher

In addition to state-level changes, local dynamics can amplify the increase:

• School district mill levies often account for the largest portion of property tax bills, and many districts have approved bonds or overrides.
• Overlapping taxing districts (county, town, fire, recreation, special districts) mean tax bills can vary significantly from one neighborhood to the next.
• In mountain communities like Summit County, assessed values remain high even when price growth cools, compounding the effect of higher rates.

As a result, two homes with similar values can see very different tax outcomes depending on location.

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5. What About 2026 Assessment Rates?

Looking ahead to the 2026 tax year, the residential assessment rate for the local government portion is expected to rise to 6.8%.

However, House Bill 24‑1001 introduces a new mitigation tool:

• Homeowners will subtract approximately 10% of their home’s value, up to $70,000, before applying the assessment rate.

With this subtraction, the effective assessment rate for many average-priced homes is projected to be closer to 6.4%, slightly reducing the impact — but still well above the temporary pandemic-era rate.

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6. Historical Context Matters

Even with these increases, Colorado’s property taxes remain low compared to much of the country:

• Colorado average effective rate: ~0.49%
• National average: ~0.90%

That said, homeowners who became accustomed to years of declining or flat assessment rates under Gallagher are now experiencing a structural reset — and that adjustment feels abrupt.

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Bottom Line

If you are facing a 25% increase in property taxes in 2026, it is not because your home suddenly became more valuable.

It is primarily the result of:

• The expiration of temporary pandemic-era tax relief
• The implementation of higher permanent assessment rates
• School district and local mill levy impacts
• Long-term policy shifts following the repeal of the Gallagher Amendment

Understanding these changes is essential — especially for homeowners budgeting long-term or considering a future move.

If you have questions about how property taxes affect your home’s overall cost of ownership, or how these changes may influence future market dynamics, I’m always happy to be a resource.