April Market Update for Steamboat Springs
Its an interesting time right now in Steamboat. The real estate market continues to show signs of recovery and more people are evaluating if it is a good time for them to purchase or upgrade in Steamboat. We are at a point where the economic news is significantly better than it has been for a long time (still risks out there for sure), other financial assets like the stock market are at or near highs we saw in the last boom and returns on cash / bonds are low. At the same time, people are seeing stabilization or recovery in their home markets. Prices are down significantly here in Steamboat, interest rates for purchases are in the 3.25-4% range and financing is getting a bit easier, even for condos. Locally, at the end of March the Real Estate market was up 8.5% YTD and March 2012 was 19% better than March 2011. This has some people considering if it is a good time to take some profits in their stocks or deploy some cash to meet their short or long term goals in Steamboat. The motivations for people to purchase property in Steamboat can be mostly financial or based on other priorities like more time with family, a better environment for their kids, changing needs and usually the desire to change their lifestyle for the better. Generally it is a combination.
It is a good time to assess your personal goals and what may be available that meets your needs so you can decide if it makes sense to to start taking a closer look. Overall inventory is down, the pace of new short sales & foreclosure activity is lower in most parts of the market and there are still quality properties available that are priced to sell. This news is much better than it was a year ago and it helps to see short sales and bank owned properties clearing out parts of the market. Although it is not widespread, some properties have seen appreciation recently as supply is reduced and distressed properties sell in a few parts of the market. This is beginning to increase local confidence levels as we see stabilization in many parts of our economy including more work for many in construction. Quite a few contractors and subs I know are fully booked, even hiring.
I'm not calling a bottom yet given all we have been through but you can only really do that once the bottom has past. What I am saying is that we seem to be in an interesting period when an increasing number of signs point to recovery, national economic news is better and prices are low. While there is the potential for prices to go lower, we are also getting to a point that the supply of many quality properties is getting limited and they are being purchased faster than the rate new ones are coming on the market.
My thought here is that even if prices do go a bit lower you are likely to get a better value if you find a home that is a closer match for your needs and also a better asset than what you may find later. I'm not saying it is a short period but I do believe that it makes it a good time to assess the situation based on your goals and the part of the market that meets them.
You are clearly the best qualified to decide. I can help you learn what you need to make that decision, then you can either keep watching or take a closer look. Give me a call if you would like to talk. I will be honest with you and can generally offer thoughtful insights into what is going on and how that relates to your goals.
Below are 3 graphs showing different properties that are stabilizing. I chose properties that are similar instead of single family homes since their prices need little adjustment for quality, size and location difference