How is the Steamboat Market for your goals?
How is the market? Top level it's encouraging. More and more people who have been watching things carefully are deciding this is the time to look more closely at their options in Steamboat. We continue to see good signs locally, in the key regions where people come to Steamboat from and the national climate continues to improve. People tell me that they think the news is much better now than it was a year ago. That along with lower prices and interest rates makes this a good time for them to look.
I talk to clients everyday, they tend to have long term plans for spending more time in Steamboat and they are seeing this as a chance to either own at attractive prices or upgrade to a place that fits their longer term plans. If they don't own here yet, most of my clients say they think we are close to the bottom and that is why they are looking now.
If they own here already, we talk about how they may not get what they would like to for their current property but it is getting more likely it will sell if listed properly. The key is net upgrade cost which is likley to be lower now than it will be once things recover. This is because the property people upgrade to is generally priced about 50% higher than their current property. If this is the case, waiting for $100K in appreciation on their current property may cost them $150K or more on the property they upgrade to along with having fewer properties to choose from. If the new property they would like is about the same value, then the decision may be more about when they need the new type of property or when the right replacement property is available.
Is all the news good? No, there are still risks out there and several parts of the market are not to a point they are turning yet but key indicators like the amount of inventory, bank owned, short sales and foreclosures are going down significantly. When those risks become minimal it will be safer. At that point prices will be higher and there will be less selection, so that needs to be considered when you are deciding what the best timing is for you. We have seen several parts of the market stabilize here in Steamboat now so we are at a point where we can see other parts following the same path to recovery.
With the improving outlook we are seeing more parts of the market consolidate and start to improve once the distressed properties sell and the options narrow. A few sellers are getting less flexible price wise as they see more activity and for the last 9 months or so it hasn't been surprising to see multiple offers.
Steamboat's Real Estate Market is driven by the state of the national market, our 2nd home buyer's markets, the stock market, local market factors and people's desire to enjoy our local lifestyle. Each of these is improving or stable. Each part of our market is different, if you want to know how your part of the market is doing in relation to your goals just give me a call. I'll listen to you then give you honest answers.