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COLORADO GROUP REALTY

INSIDER FEBRUARY 2017

VOLUME 1

ISSUE 1

2016: A Year in Review

As we reflect on 2016, the combination of low interest rates, a strong national housing market (According to the Case Shiller National Home Price NSA index, 2016 home prices surpassed 2008) and an increasing Routt County population led to a very strong year in real estate. Total sales volume for the year was $637 million which was 20% higher than the total sales volume in 2015. More specifically, residential sales volume (excluding timeshares and fractional properties) increased 22% from 2015. With median home prices up 14% from last year to $532,000 Steamboat Springs property owners can feel good about the value of their investment. As your market experts, we are pleased to report 2017 is starting off strong and we expect upcoming closings to further reflect the trend towards higher prices. Keep reading to learn more about the market and its direction.

Single Family Homes

Condos/ Townhomes

VS

VS

VS

Avg. days a single family home spent on the market

Sold single family homes

Avg. sold price for single family homes

VS

VS

VS

Avg. days a condo/townhome spent on the market

Sold condo/townhomes

Avg sold price for condo/ townhomes

Source: Steamboat Springs MLS : Data shown is for the City of Steamboat Springs


Trends & Forecast

CHARITABLE FOUNDATION

By: Martin Dragnev Broker/Owner

New Construction & Design: The strongest category for housing in Steamboat is the new construction market between $1M-$2M dollars. A combination of relocating families and retiring part time/full time residents are driving the demand for these homes. With limited supply and increasing appraisals we foresee significant new development in areas like Barn Village and Wildhorse Meadows. One of CGR’s owners, Nick Metzler is leading the development team of the new 92 home Sunlight Subdivision just west of

Interest Rates: Interest rates are on the rise. While there was an initial spike in rates after the election, it appears the intensity of the increase has slowed, with the Federal Reserve Board holding rates steady this past meeting. As we are continually in this conversation, let us know if you have questions on how this will impact your ability to afford your next home. In a nut shell, rising rates increase the cost of ownership, thus reducing the amount of home buyers can afford. There is much more to this story so don’t panic!

$219

5%

$2,685

$292

3.65%

$2,609

3.85%

4.75%

4.17%

$73 $146

3.98%

$2,387 $2,460 $2,533

3.66%

4% 4.25% 4.5%

4.45%

MONTHLY DIFFERENCE FROM CURRENT RATES

4.69%

MONTHLY PAYMENT

Rental Market: Like many areas nationwide, we expect the local rental market will continue to a challenge for renters and an opportunity for landlords. Low supply and increased demand have pushed vacancy rates to very low levels. One exciting development is the new 48 unit, for rent, affordable housing project called “The Reserves at Steamboat”. We are optimistic this property will ease some demand. The leasing process recently began. Let us know if you would like more information.

5.04%

MORTGAGE RATE

6.03%

downtown. As design trends continually evolve, if you are thinking of building let us know. The extensive amount of time we spend with buyers looking at homes gives us a unique insight into what’s in today.

6.34%

The Colorado Group Realty Charitable Foundation seeks to make the community a better place by helping those in need. Funded by the generosity of CGR agents, employees and clients, the Charitable Foundation supports a wide range of non-profit organizations throughout the Yampa Valley with donations of money, items of need and manpower.

Housing Attainability: Increases in demand for entry level properties will cause prices for entry level housing to continue to rise in 2017. Rising prices combined with higher interest rates, will have a negative effect on the purchasing power for buyers in this category. Considering the challenges associated with developing lower priced housing in Steamboat, we expect demand for homes in surrounding areas like Hayden, Oak Creek, Stagecoach and Clark to increase. While the entry level housing challenge is difficult to solve in all Colorado ski towns, Steamboat represents one of the best values. We are optimistic that plans for additional housing developments west of Steamboat will gain traction in the coming years.

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

*30-Year Fixed Mortgage on $500K loan

STAGECOACH

NORTH ROUTT

66%

72%

9%

136 UNITS vs 82 UNITS

$46,500 vs $163,500

40 UNITS vs 44 UNITS

One-Year Change in # of Sold All Properties

One-Year Change in Median Sales Price All Properties

One-Year Change in # of Sold All Properties

11% $286,000 VS $320,000

One-Year Change in Median Sales Price All Properties

HAYDEN

65% 89 UNITS vs 54 UNITS

13% $186,000 VS $164,875

One-Year Change in One-Year Change in # of Sold Median Sales Price All Properties All Properties


LUXURY MARKET STATISTICS VOLUME OF $2M+ PROPERTIES SOLD

$110. 3M $56.8M $10M $25M $50M

25

$75M $100M $125M

NUMBER OF $2M+ PROPERTIES SOLD

20 15 10 5 Colorado Group Realty represented the buyer and seller for the iconic Bella Vista Ranch located on the ascent of Rabbit Ears Pass

0

2013

2014

2015

2016

2016 HAPPENINGS IN STEAMBOAT SPRINGS REAL ESTATE Growth: Colorado’s economy will rev Range metro areas, more people are they face with low inventory. More into high gear this year; it is expected seeking solitude in the mountains than 80% of vacation buyers and to have the second fastest rate of and increasing the real estate activity investment buyers reported that now population growth in the country for ski resort communities like is a good time to purchase real estate. in 2017, adding another 95,0 0 0 Housing bubble: With the housing bubble burst of 2008 still lingering in people’s people to bring the minds, there are increasing concerns that we may be entering bubble territory total population to 5.5 million. Routt again. While it’s prudent to be careful, leading indicators are not at warning levels County’s population yet. In 2008, almost 40% of all US mortgages were of poor quality. Today, lending has grown by 3% in to homeowners with marginal credit is much more stringent. Interest rates remain the last five years with historically low, much different than in 2008. Lastly, in the four-year period leading half of that growth to the 2008 bubble, homebuilders constructed almost two million new homes each co n ce n t r a te d i n year. However since 2011, new housing units hitting the market have averaged Steamboat Springs. less than one million meaning it’s likely that we aren’t building too much supply. The population of Routt County is expected to double by the year 2045. Steamboat. This is reflected in the Affordable Apartments: The Yampa Income Growth: Much of the increase number of properties sold in 2016. Valley Housing Authority introduced was represented by the millennial There were 819 properties sold in a 48 unit apartment project targeted age group stipulating an increased the city of Stemboat Springs, per at households making between demand for entry level properties for the MLS, a 2% increase from 2015. 40% and 60% of the area median what is usually a first time home buyer. Second home owners: 37% of income. The project was developed The per capita personal income in second home buyers plan to use their through a partnership with Overland Routt County continued its steady property for vacations or as a family Property Group. The addition of this growth and is currently 38% higher retreat, 16% plan to convert their apartment building is projected to than the nationwide average and 30% vacation home into their primary help with the lack of housing options higher than the state average. Routt residence in the future, and 13% for local employees. Apartments County’s employment percentage purchased because of low real estate are now available to lease. is the 7th highest in the state. prices. Buyers of vacation homes and Solitude in the Mountains: With investment properties were active the continued growth in the Front in the market despite the hurdles


Commercial Real Estate

Commercial Market: Steamboat’s commercial market saw a decline from 2015 to 2016, in both total number of transactions (34 to 26) and sales volume ($27M to $23M). While on the surface, it appears the market was slow, there was significant investment not reflected in these numbers. In 2016 we saw restaurants Dude and Dans, Table 79, Mountain Tap, Salt n Lime, Scratch and Brick open. Old Town Pub and the Tap house are under new ownership. The signature office of Deer Park Road Corporation, located at Wildhorse Meadows, next to Trailhead Lodge officially opened for business. While these private investments are not reflected in our sales numbers, they are a clear sign of business optimism. Steamboat Springs is completing the Yampa Street portion of a $10,000,000 public investment. Check it out this summer! New walking promenade, river park on 6th, powerlines are underground and street lamps.

Upcoming Events

FEBRUARY

Retail and Office: As we all read in the headlines, traditional retail stores are under attack by internet sales. Steamboat is not immune to this trend, however in 2016 we saw some exciting new developments. Marmot opened a branded retail store on the corner of 7th and Lincoln and the exciting project 910 Yampa Street officially came to market. 910 Yampa is a great example of a multi-use experience based development with restaurant, office and residential in a trendy repurposed old firehouse.

TOTAL YEAR END INVENTORY ALL PROPERTY TYPES $1.5B

$1B

$1.01 B

$500M

2012

2013

Valentine’s Day Torchlight Parade & Fireworks at Steamboat Resort

23-26 Winter Wondergrass Festival 23-28 Mardi Gras celebration at Steamboat Resort

2014

3

First Friday Art Walk - Downtown

17

Torchlight Parade & Fireworks

at Steamboat Resort

APRIL

$1.215 B $1.116 B

$1B

14

MARCH

$2B

$1.272 B

8-12 104th Annual Winter Carnival

2015

1

Cody’s Challenge at Steamboat

Resort 7

First Friday Art Walk - Downtown

1-16

Steamboat Springalicious 2016

16

Final Day of Ski Season

2016

MyBrokers.com Neighbors.Friends.Realtors 970-870-8800 509 Lincoln Avenue Steamboat Springs, CO 80487

Martin Dragnev Broker Owner 970-870-8800 O 970-291-9412 C martin@mybrokers.com www.MyBrokers.com

February Newsletter_MartinDragnev  
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