COLORADO GROUP REALTY
PUBLISHED ON FEB 15, 2021
INSIDER VOLUME 4 ISSUE 2
How's the Market? The booming real estate market of 2020 is rolling right into 2021 and activity in the Yampa Valley is taking off quickly. January’s $62M in sales volume on 106 transactions was up considerably from last January when there was a solid $42M in sales volume on 55 transactions. These enhanced numbers continue to surprise as inventory persistently remains at an all-time low. There are now just a paltry 84 residential properties for sale in Steamboat Springs down from 206 at the same time last year. This means that there is just one month of inventory, the lowest in the city’s history. One surprising stat is that the high number of transactions in January led to a much lower average sales price for the month: $583K in Routt County. There’s no doubt that the 38 land parcel transactions drove the average price down. Land sales have been on a tear lately with total land sales volume over the last seven months equating to the last three years combined. Limited options for buyers means that more people are opting to build. Some potential long-term assistance to the inventory problem recently hit the market. Overlook Park Subdivision, located on the west side of Steamboat, offers 140 home sites spread across 70 acres and is for sale for $12M. Hopeful home buyers are rooting for a developer to take on the project especially since the 450 home West Steamboat Neighborhoods appear to have stalled or been cancelled altogether. Skiers frustrated by the long lift lines are excited about the recent announcement of Gondola Square being redeveloped. The project, slated to start at the end April, includes plans to move the gondola building and to utilize that space for additional restaurants, shopping and entertainment venues. This redevelopment is just the start of several improvements that are part of Ski Corp's master plan. These updates will improve the experience of both locals and guests, and will increase out-of-base capacity from 6,000 people per hour to 10,000 people per hour. As we continue to monitor the activity in Steamboat, please reach out to us with any questions that you may have. We are happy to serve as your trusted real estate advisors during this ever-changing period.
Year to Date Stats Single Family Home Stats 2020 vs. 2021 Sold Single Family Homes 18 vs. 20 +11% Median Days in MLS 129 vs. 23 -82% Median Close Price $837K vs. $1.4M +67%
Condo/ Townhome Stats 2020 vs. 2021 Sold Condos/Townhomes 24 vs. 45 +88% Median Days in MLS 41 vs. 5 -88% Median Close Price $410K vs. $660K +61% Source: REcolorado Market Statistics for zip code 80487 (Steamboat Springs) through 2/15/21
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Pricing Homes In A Rising Market
ooming demand and limited inventory have led to rapidly rising home values. It begs the question: how do you price real estate in a seller’s market?
List prices in Steamboat are increasing at a fast pace. In 2019, the average list price of a single-family home was $1.37M, which rose to $1.79M in 2020. Condominiums and townhomes also saw growth from $633K in 2019 to $770K in 2020. Keeping these figures in mind, Realtors® recommend staying close to market value to attract buyer interest and encourage multiple offers. Aspirational sellers will often price their homes aggressively in a rising market but those homes may end up listed for longer periods. Buyers often are wary of a property that remains on the market for too long. In this market, a newly listed property can see 8-10 showings from desperate buyers within days. A modernized home with recent upgrades tends to sell faster. Building costs are running at an all-time high, with contractors currently booking far in advance. As a result, it can be challenging for a new homeowner to remodel within their desired timeframe. Sellers who want to undertake improvements prior to listing should focus on appliance upgrades, declutterting, painting and staging. Buyers are often adding escalation clauses, which means that they will agree to pay a certain amount above other offers. Because of the high demand, sellers are less likely to accept a contract that is contingent on the sale of another property. Sellers, who price their property competitively or slightly below other homes in the market, are more likely to reap the benefits.
AVERAGE PERCENTAGE OF CLOSED PRICE TO LIST PRICE IN STEAMBOAT SPRINGS STEAMBOAT SPRINGS SINGLE FAMILY HOMES
STEAMBOAT SPRINGS CONDOS/TOWNHOMES 100%
92% 91% 90%
AVERAGE LIST PRICE FOR STEAMBOAT SPRINGS SINGLE FAMILY HOMES CONDOS/TOWNHOMES
92% Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21
Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21
SINGLE FAMILY HOMES
$554K All data from REcolorado
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WHO BOUGHT IN STEAMBOAT IN 2020?
Second Home Buying Considerations Out of State 27%
wning a second home has never held more appeal, especially in Steamboat. Before the pandemic, demand for second and primary homes had been growing at similar rates. But with the longevity of the pandemic sinking in, interest in second homes has grown twice as fast as for primary homes.
Motives for second home purchases can vary. If the idea is to generate rental income, there have been changes to tax laws in recent years. A Front Range property that is rented out for fewer than 14 days per year is exempt from 25% rental income being reported to the IRS. However, rental expenses are then not tax deductible. When a property is rented for 14 days or more per year, but is rarely used for personal use, rental expenses can be deducted. Lastly, a property that is occupied for more than 14 days, but is seldom rented International <1% out is considered a personal residence. In this case mortgage interest and property tax can be deducted, but the amount is capped. If the motive is for personal use, like all mountain towns in Colorado, weather is one of the biggest considerations. Properties need to be winterized to withstand a harsh winter, and gardeners beware, Steamboat gets an average of 59 frost-free days in summer. Enlisting an experienced property manager may save a great deal of time and money.
Year-Over-Year Lodging Occupancy Steamboat Springs 2019/20 SEASON 2020/21 SEASON Data as of January 31 from the Steamboat Springs Chamber
If owning a single family home or condo outright is not an option, Steamboat offers opportunities for fractional ownership, vacation clubs and condo hotels. Local organizations such as Main Street Steamboat, Strings Music Festival, Steamboat Springs Winter Sports Club and Steamboat Resort Corp. offer volunteer opportunities, which gives second home owners a chance to get involved and meet other members of the community.
75% 60% 45% 30% 15% 0%
-26% -22% -16% 16%
A Virtual Workout
ast year, the U.S. News Healthiest Communities Rankings named Routt County the 5th healthiest community in the nation. Locals take their health seriously and part of that mindset revolves around fitness. When COVID-19 put the nation into lockdown last spring, many local wellness centers found ways to adapt. “We saw a need within our community to keep people healthy, active and engaged,” says Rebecca Williams, owner of Steamboat Fit. “We tried a few platforms at the beginning and chose Zoom as it allows for interaction between class members and for us to personalize the session, depending who joined in on the day.”
When venues were able to reopen, a handful of instructors chose to keep an online presence. “We will never drop virtual classes, they are here to stay,” Williams says. “We have elderly members, moms with their kids and those who just love being able to work out in their own home but want to stay connected to friends in class.” HERE ARE SOME OF OUR FAVORITE WORKOUT CLASSES Rakta Hot Yoga and Wellness Not So Hot Yoga Rakta Your Core Strength and Flow www.raktahotyoga.com
Steamboat Pilates and Fitness Strength, Balance and Recovery Straight-Up CORE Burn www.steamboatpilatesandfitness.com
Yoga Center of Steamboat Gentle Flow Yoga Mind, Body and Breath www.yogacenterofsteamboat.com
Steamboat Fit Ski Fit Barre High Intensity Interval Training www.steamboatfit.com
Old Town Hot Springs Visit www.oldtownhotsprings.org to search for a variety of classes and online health and fitness resources.
Routt County COVID-19 Impact Monitor Data provided by Johns Hopkins CSSE. Updated 2/15/21
Tests Administered 32,887
Confirmed Cases 1,795
realtor® (O) 970.870.8800 (C) 406.360.5292 firstname.lastname@example.org paulweese.com
Routt County Dial Level Level Orange : High Risk