Steamboat Springs Real Estate Market Update - Updated January 2023!

Whats Going on Top Level in Routt County

As 2022 winds down its a good time to both reflect and look forward. We hope that you have had a great year and have made the most of your time outside in Steamboat. Here are our Top 7 things to know about the Steamboat Real Estate market. Let us know if you have questions even if you are just curious.

Top 7 Takeaways

1) Sales volume is down 20% YTD vs 2021. This isn't a surprise given all of the headwinds the market has seen in the last 9 months yet our market is proving to be resilient. For perspective it is still on track to be the 3rd best year ever sales wise. The sky is not falling we are just returning to more normal market timing, negotiations and conditions after Covid. There are some challenges but thoughtful people planning for the long term still value being here more than before Covid and are acting accordingly.

2) Average sales price in November 2022 was up 30% vs November 2021 ($989,397 vs $761,023). YTD the average sales price in 2022 was up 19% vs YTD 2021 ($1,016,711 vs $852,815). The value of any particular property has taken a step back to reflect the impact of interest rates and the pull back of the stock market.

3) That said we are still seeing even fewer people choosing to sell their properties because they plan to hold them for the long term. They do not need to sell because they have a lot of equity and either paid cash or were very highly qualified for their loans given the much higher loan standards since 2009. We are watching both the numbers and our conversations closely, neither reveal any distress in our local market. That doesn’t mean values haven’t adjusted a bit but much less than some want or believe. Deals are happening in the 5 or maybe 10% off of list price range with the higher end of that scale representing either overpriced properties or properties with issues.

4) The compares in sales and average values will be harder in the spring because we will be looking back at when inventory was in the 39-80 unit range which we got down to for only 4-5 months.We are currently in the low 120’s of inventory for residences in Routt County which was unimaginably low until the last year. Basically low inventory and little if any distress for sellers makes our market resilient.

5) The spring 2021 and 2022 markets combined both the great migration and low interest rates. You wouldn’t know from the headlines (that are almost always much more drastic than the article that follows) but we are now in a more moderate but still good winter market where smart people who have studied the market that are thoughtfully realizing their long term goals in Steamboat. Looking forward we will likely be comparing what looks to be a more normal spring market in 2023 vs. the influx of great migration the last 2 years.

6) What the news has done is put us in a market where buyers don’t have to jump the first week most of of the time and can have more leverage when placing offers to get reasonable terms and a moderate discount on price. That said there are still a fair amount of quick contracts and multiple offers for a desirable property that is priced to reflect the current market. We are happy to give you more perspective on what we are seeing out there in general or for a particular type of property for you to consider as you work to make the best decision for you.

7) Barring a big new bump caused by a big new international issue we see things continuing to normalize and Buyers will have a good opportunity to achieve their goals despite the low inventory. If the right property comes on they can work with a skilled broker broker to achieve their goals on reasonable terms. In times of change people tend to gravitate to brokers who truly understand the market and will honestly guide them through it.

Given the desirability of our local lifestyle and the long term undersupply of properties we believe that real estate Steamboat is a good long term asset especially if you value where you spend you time. Do you think that as many people will want to be here in 10 years given the options? We can’t predict if years 1, 7 or 9 are good but I have only seen an increasing desire of people to be here since I started in real estate here 18 years ago and started coming here a lot 36 years ago so I believe the future is still bright. Let’s talk if you would like to know more.

Share your fears and dreams and we will give you a list and pros and cons to consider so you can wait if you think that is best or thoughtfully look for the right home so you can start enjoying it of the long term.

‍—Jon Wade - Broker/Owner

Whats Going on Top Level in November in Routt County

As you know the market is shifting. There is uncertainty in the economy, inflation, and interest rates. However, this is balanced by resiliency in our market, homeowners who are not distressed, equity is high, the loans were well qualified, and the long-term appeal of owning in Steamboat. We are seeing good indications of the resiliency of home values. This combination gives us a good market for both buyers and sellers but read on for the details so you can decide what is best for you.

We took this opportunity to compare what is going on in Routt County (the numbers below include all transactions in the MLS including land, commercial, residential etc.) We save the more detailed breakouts for our quarterly reports. See below for comparisons between October 2022 and 2021 as well as October 2019. Why? We want to compare to last year because it is the most recent and adding in 2019 gives us perspective to how it compares to the pre-covid market.

2019 was a strong market. With 398 homes available on average, it gave buyers the opportunity to look for homes that matched their goals while homes that were priced competitively sold relatively quickly. The market was strong then for the time but inventory was the lowest we had seen in 20 years. By comparing to another year in addition to 2021, it allows us to look at things in a broader scope. The great relocation market of the past 2 years can make changes look dramatic without an in-depth explanation and the perspective that 2019 was a very strong market.

October 2022 vs October 2021

• A 52% decrease in sales volume. October 2022 vs 2021 which was the highest sales volume month in over 10 years $191M in ’21 vs. $97M in ’22)
• A 0% change in average sales price ($1,164,324 in 2022 vs $1,166,034 in 2021). Not what you would conclude by reading the news ...
• A 17% increase in median sales price ($601,000 in 2022 vs $513,300 in 2021). This takes out the effect of a few higher or lower end sales to give us a better sense of what is happening for the typical sales price.
• A 13% increase in average inventory (152 in 2022 vs. 135 in 2021)

YTD 2022 vs. 2021

• A 14% decrease YTD in total sales volume ($932M in 2022 vs 1.1B in 2021)
• A 32% decrease YTD in total units sold (1,010 units in 2022 vs 1,480 units in 2021)
• A 26% increase YTD in average sales price ($923K in 2022 vs $732K in 2021) - Basically the average was higher in the spring but has appreciated vs. 2021.
• A 34% increase YTD in median sales price ($670K in 2022 vs $499K in 2021)

What do these numbers mean?

There is a large decrease in sales volume. Some of this can be contributed to the higher interest rates and people’s desire to see what happens yet many people are moving forward after considering all that is going on and weighing their overall goals. October last year was the highest single month sales volume for the past 5 years. Looking at any 1 statistic in isolation could transform the story of where the market is.

The average sales price year over year is stable. For the month of October there was 0% change. It's encouraging to see that the median sales price was up 17% vs 2021, and 34% year over year.

There is a slight increase in average active listings on the market vs last year. Last year was particularly low in terms of inventory.

October 2022 vs October 2019

• A 14% increase in sales volume (comparing October 2022 $97M in ’22 vs October 2019 $85M)
• A 71% increase in average sales price ($1,164,324 in 2022 vs $679,913 in 2019)
• A 45% increase in median sales price ($601,000 in 2022 vs $415,000 in 2019)
• A 62% decrease in average active listings (152 in 2022 vs 398 in 2019)

YTD 2022 vs. 2019

• A 85% increase YTD in total sales volume ($932M in 2022 vs 504M in 2019)
• A 7% decrease YTD in total units sold (1,010 units in 2022 vs 948 units in 2019)
• A 74% increase YTD in average sales price ($923K in 2022 vs $532K in 2019)
• A 60% increase YTD in median sales price ($670K in 2022 vs $420K in 2021)

What do these numbers mean?

In the past 3 years we have had an 85% increase YTD in sales volume ($932M in 2022 vs $504M in 2019). And comparing to 2019 is not comparing to an outlier year. In 2017, through the end of October sales volume was $517M and in 2018 through the end of October sales volume was $528M. Total sales volume has increased dramatically even post Covid with high interest rates etc.

For inventory we focus on residential listings to have the cleanest number. There has been a 62% decrease in the number of active units of homes on the market since 2019 or conversely there were 2.6 times as many residences on the market in 2019 as there were last month. Having low inventory helps the market to be more stable in times of change and this is very low inventory.

Overall Takeaways

Average sales price YTD is up 26% vs. 2021 and up 74% compared to 3 years ago. YTD sales volume is up 85% from 3 years ago. Inventory is down 62% compared to 3 years ago. Buyers have slightly more options than they did 1 year ago, but still significantly less than they did 3 years ago. To compare only to 2021 and only to October’s decrease in sales volume would be a small snapshot of a larger story of what is really occurring in the market. The value of individual properties are up dramatically over three years, and holding (0% change in October with the median up 17%). They are lower than this spring but showing a lot of resilience due to the good foundation our market is on.

Prices may decrease from this level, but we believe that with the quality of life in Steamboat and people’s desire to be here more the long term outlook is most likely to be good.

‍—Jon Wade - Broker/Owner

There is uncertainty in the economy, inflation/interest rates - balanced by resiliency in our market, homeowners who are not distressed, high equity, and the long-term appeal of owning in Steamboat. This combination gives us a good market for both buyers and sellers.

As you know we are in uncertain times but people are taking a long-term view. When is there no uncertainty about the future? Do you think the 10-year outlook for Real Estate in Steamboat is good? Are people's reasons to be here getting stronger or weaker? The people we are talking to are considering the challenges but see a good future. We often say there are good reasons to believe real estate here will perform well over the next ten years but we don’t know if years 1, 7 or 9 will be good.

What do we mean by this? We all know that markets go up and down but do you think more or less people will want the Steamboat lifestyle over time? We encourage you to get informed, ask lots of questions, think about the pros and cons, then make the best decision for you.

Are we seeing a return to normalcy?

• More normal negotiation on price, terms, & timing. Plus more time to see a property.
• Sales volume is down 9% for Q1-Q3 for residential property in 2022 when compared to Q1-Q3 from an amazing year in 2021 as the market moderates but still 66% higher than 2019 with 1/3 of the inventory we had in 2019.
• Days on Market were 25 at the end of Q3 vs. 97 in August 2019 before Covid which was a very good market at the time.
• There are clearly economic challenges right now but people still want to be in Steamboat.

Even as the market moderates and average prices still increased nicely in most segments both so far this year compared to a year ago, as well as when looking at just Q3. With inventory remaining low, this shows that people continue to value having a place in Steamboat and that the people that own in Steamboat are on a solid foundation. It’s very different than 2008 when there was a lot of speculation, marginal loans and other risk factors. People that have been buying since then, including the last two years, plan to use their place here for the long term and are well qualified to purchase it.

In talking to title companies over the last month, we learned that loans are now involved in approx. 80% of purchases. This is a bit counterintuitive given increasing interest rates but it does make sense as we see buyers working to purchase before rates go higher. Looking further out Fannie Mae which insures most mortgages is currently predicting that rates will be back down to the mid 4%’s in the next 1-2 years so some local lenders see the opportunity to lock in the right property now before rates go higher and then refinance in 1-2 years. Don’t count on that to afford your mortgage but it is not a big leap to connect the widely held view on Wall Street that the Fed will overshoot in fighting inflation then need to lower rates to strengthen the economy in the not too distant future.

Will prices in Steamboat go down? It is a scenario worth considering, but it’s hard to see inventory going up to around 1,000 residences like the last time prices went down. Will we see lots of people needing to sell when cash purchases have been over 45% for at least 7 years and loan standards have been high since 2009? It could happen and were are not saying it won’t, but consider that ~70% of professional investors don’t beat the stock market - it is more important to time your home in Steamboat or get here sooner to enjoy your life and the people that make it special in your favorite town.

Inventory is up but still very similar to Summer 2021 a very strong sellers market.

• A balanced market is considered to be 6 months of supply vs the 3 months we have now.
• The interesting thing is that Buyers have more time to see properties and more favorable due diligence terms/contingencies, negotiate a bit which are benefits of a balanced market.
• Sellers are still getting great prices if they are in tune with the market in exchange for giving buyers more comfortable terms and not expecting big progress from the last sale.
• Overall people still have life-based reasons to sell or purchase a home and are finding common ground that is good for both.

We thought it would be valuable to look at year-to-date $ Sales for the last 5 years to put things in perspective.

• 2018 and 2019 were excellent markets we would be happy to see every year.
• Covid put the market on hold in late march 2020 and Q2 that year was slow.
• New contracts kicked up in June 2020 and then in July people accelerated their long-term goals to be in Steamboat as Covid gave them more freedom to be where they want to be more or full-time.
• 2021 was an exceptional year so it is comforting to us to see 2022 be within 9% even with the current challenges.
• We did see more of a dip in Q3 which was down 26% vs. the exceptionally high year ago compare but still 66% higher than 2019 with 1/3 of the inventory we had in 2019.
• Even in these uncertain times, thoughtful people are still seeing the long-term value of owning in Steamboat.

‍—Jon Wade - Broker/Owner

From the start of Covid in March 2020 people accelerated their plans to be in Steamboat due to increased flexibility and changing priorities. In 2022, we have gone from extremely low inventory in January towards a more balanced market. Some people have chosen to hold their cards while they waited to see what happened with inflation and the stock market. At the same time, a few more sellers have stepped forward. These combined to see inventory increase to where we were in 2021, giving buyers more options and ultimately helping sales remain close to 2021 levels. Sales are still two times higher than 2019 (before Covid) which was a great year, ($304M in 2019 vs $643M in 2022 through the end of June) and inventory is still about 1/3 of 2019 (appx. 457 properties in June ’19 vs 149 properties on the market June ’22).

The value of most individual properties are still higher than in 2021. However, you will see some averages in the segments below vary due to the price points of the particular properties that sold. We expect the annual gains in value to moderate but still remain positive with what we are seeing now. We base this on the combination of low supply, high equity / solid loan underwriting, and the continued desire of people to increase their quality of life by being in Steamboat.

Yet, as noted in a recent New York Times article, “your home may sit on the market for a few weeks and if priced well, sell for around asking price—which will be more than you would have gotten a year ago.” At the same time, buyers who stay in the market now have more power to make at-asking price offers without forgoing reasonable demands such as appraisals, inspections, and mortgage contingencies.

• Average prices are up and the number of transactions is down due to low inventory
• We have seen new contract activity pick up since mid-July as people digested the news and the stock market improved.
• People still love Steamboat, their purchases here are mostly long term, and they see a good long term outlook for homes in the Yampa Valley.
• While it is still a Seller’s market, moderation has allowed buyers to have more time to see the homes they like, lowered the chance to multiple offers and brought more balanced pricing / terms.
• Buyers still want to be here and a few more Sellers see it as a good time to achieve their next goal in Steamboat or somewhere else as they enter a different phase in their life.

Even with the recent changes to the marketplace, home values continue to be strong--motivating sellers to list their homes on the market and encouraging buyers to purchase properties in order to help shield their money from rising inflation. Steamboat's real estate market has shown a lot of resilience and is helping both buyers and sellers create the life they love this year.

To answer the question on everyone’s mind regarding how the market has done with the news this spring, here is a look at how the market did each quarter. It is good to see things stay fairly steady during Q2 when the news about Ukraine, inflation, and the stock market dropping were all in focus. Q2 is the start of our strongest selling season, so this makes us feel good that our local market is on track to moderate vs. the pullback some were concerned about.

All Sales Included (January 1 - June 30)
Dollar sales are down 1.8% YOY for the 1st half (ending June 30) - $662M in 2021 to $650M in 2022.

• Q1 - Dollar sales were down 24.8%. $280M in 2021 to $210M in 2022 due to inventory that was as low as 39 residences vs. 180 a year ago.
• Q2 - Dollar sales were UP 15%. $383M in 2021 to $440M in 2022 as inventory increased to around 160 residences giving more options and increasing sales.

EXCLUDING a $39.9 ranch sold on 6/28/2022 (January 1 - June 30)
Dollar sales were down 7.8% YOY for the 1st half (ending June 30) - $662M in 2021 to $611M in 2022

• Q1 - the same
• Q2 - Dollar sales were UP 4.6%. $383M in 2021 to $400M in 2022

We will continue to monitor how this plays out, but a little over halfway through Q3 (as of 8/21/22) dollar sales are within 6.9% of 2021 which was at the height of the hottest market we have seen.

We are happy to help guide you to the best info to achieve your goals. We can help you understand how the current market, interest rates, STR regulations, Brown Ranch local housing, and low inventory combine with your goals to give you what you need to make the best decision for you.

‍—Jon Wade - Broker/Owner

The first quarter of 2022 in the Steamboat Springs real estate market has been driven by both a strong demand, the lowest inventory we have seen in over 20 years, and the ability of people to be here significantly more. The result is prices have continued to increase, giving current owners much more equity. Unfortunately, this continues to make it more challenging for both locals and visitors to secure a place here.

The lack of inventory in Q1 was 100% of the reason that sales were down 25% vs. a year ago. Q2 so far is up 9% due to more, but still very tight inventory.

The level of supply at any given time in Q1 was 40-60 residences, compared to about 160-180 a year ago, 80-90 at the end of 2021, and 70-80 so far in May. Demand continues to be very strong this spring.

Even if inventory were 3x higher it likely wouldn’t have been enough to provide choices for all of the buyers we are seeing for local properties. Before the impacts of Covid, 2019 was a strong market with good appreciation. We had over 400 residences on the market then (which we thought was low inventory at the time). We believe there is room for a fairly significant amount of inventory to come on, buyer demand to moderate with interest rates, and still have a healthy market.

As I often say, the vast majority of the buyers are buying for their long term goal to own in Steamboat, locals and second homeowners alike. We are seeing very few pure investors and they are not driving pricing or having a significant impact on demand. Buyers are being thoughtful about the market, and they see their place in Steamboat as a good long term asset they can enjoy with those that mean the most to them.

Local buyers made up 52% of purchases so far this year which we love to see. Cash buyers made up 54% of the market in Q1 which is stable from 2021. An important point to make is that means 46% of successful buyers had a loan. If you plan to purchase with a loan, we have strategies to help you signifcantly improve your odds of winning with a loan contingency.

It’s worth noting that loan standards are strict and equity in local homes is high. This is a nice buffer if there is economic change. Given the solid financial position of buyers and other long term trends, we are comfortable that the vast majority of owners in Steamboat are in a good position to continue enjoying their places here long term.

As you see, the median price in the overall statistics below is significantly lower that the average when looking at the whole market. This is due to 46 lot sales below $100,000 out in the county. Lots in Stagecoach, Oak Creek, and Hayden are at attractive price points. These entry level lots are seeing good appreciation and more sales as people look for more affordable alternatives and internet availability increases in the country.

As the supply of homes has decreased, more people are purchasing lots in all price ranges. They are using the opportunity to purchase land as an opportunity to hold a place in our market for their near or long term goal to have a home in Steamboat. It is similar to people starting with a condo or townhome before a home. Often it serves as an early substitute for buying a home, while they still plan to live in their existing place for several more years until they are at the point in their life that they are ready to build and want a home. Many find value in locking in the right location and having a foot in the door here before the area they like is built out.

Looking forward we see the new interest rate environment moderating demand to some extent for the 46% of people who get a mortgage but anecdotally we have just barely heard people mention it in May with rates up to 5%. Considering the real demand we are seeing from people who to plan to use their place over the long term, along with how much inventory could increase we believe the market is in a good position to be resilient to the effects of interest rates and inflation. In our experience, many buyers are being conservative in what they buy compared to their resources. This often gives them room to still buy as rates have increased.

Even if there is a recession at some point, the consensus of economists is that it will not be housing based recession like we saw in the last cycle. In the US and also Steamboat, building new properties has been far lower than the new household demand for over 10 years. We have many reasons to believe Steamboat is an attractive long term investment which matches the time virtually every buyer we help expects to own their new place.

We have this talk often with people and they are not looking at this as a short term investment. We believe that the combination of stable long term owners, who are buying within their means, and building new properties being limited by costs & labor will act to moderate the ups and downs markets see over time.

Short Term Rentals are in Transition

Steamboat Springs like every major resort town in Colorado in the process of limiting short term rentals going forward. While it is not done yet, it’s possible that the ability for the next owners of a place to rent short term outside of the Dark green zone will be limited and often decrease once the current process finishes this summer if the previous owners haven’t been renting short term before the new ordinance is passed.

The new rental proposal consists of different color coded zones that correspond with use limitations. The Dark green zone is close to the mountain north of Walton Creek Rd and mostly south of Mount Werner Circle but with several zigs and zags as it goes up to Thunderhead. This zone is expected to see few limits based on the discussions to date. Outside of that area and a very small area near Lincoln Ave downtown new licenses are likely to either be based on a few exceptions or unavailable. To be clear we expect most existing short term rentals to be able to keep being able to short term rent if they apply for a permanent legal non-conforming variance. The current definition of the red zone does not allow the next owner to STR after a sale of the property but existing STRs are expected to also be able to apply for a variance.

As result of this and people’s ability to work remotely (more or all of the time) we expect that we will see more rentals over 30 days after the new Short Term Rental regulations are finalized. Monthly rentals have been common in many other summer and winter resorts, became more common in Steamboat during Covid, and this new development will likely accelerate this trend.

It’s more complicated than this and still in a bit of flux so, if you are curious on how this might impact your decision to purchase or sell your Steamboat property, please call us. We will listen to your goals, explain things in more detail, get you the most current info, and the latest map of the different zones for the area you own in or are considering. It’s likely to continue to change until Council passes the final ordinance so keep in touch if this important to you.

We can be fairly sure that the supply of most short term rentable properties will be limited to current levels or less going forward. Additionally, rental and buyer demand is expected to increase based on the general trends and $200M in new investments at the ski area. The percentage of people who rent short term along with how often other owners rent has been decreasing over time as they use their places more. Places outside the dark green STR zone that short term rent are very unlikely to get new rental permits and we don’t expect significant new building in the dark green zone below $1.5 to $2M for 2 bedroom condos. These factors are likely to benefit the value of properties in the dark green zone over the long term.

It’s worth noting that 5 local hotels have been converted to workforce housing in the last couple of years to help alleviate local labor shortages. This has also taken nightly rentals off the market and should increase the number of nights the remaining short term rentals are rented.

This leaves an important question

How will the properties that can no longer short term rent when ownership changes do over time? At this point we believe that some people will keep their current STR’s for a long time and most will sell gradually over time. We don’t expect a big burst of current STRs to sell since they are expected to be able to continue renting. When they are sold some will be purchased by locals to live in and some will be purchased by people who don’t want to rent short term since they generally have lower or no HOA costs in the areas expected to be restricted. On balance we expect them to do well over the long term but there are good reasons to believe that the properties in the dark green zone will do a step or two better.

We are happy to help guide you to the best info to achieve your goals. We can help you understand how how the current market, interest rates, STR regulations, Brown Ranch local housing, and low inventory combine with your goals to give you what you need to make the best decision for you.

‍—Jon Wade - Broker/Owner

The Great Escape is now the Great Realization

The rush out of cities to escape Covid is over. Now people are no longer escaping wondering if it is temporary. They are realizing that they can have the life and career they want in the mountains and are moving here full time. Steamboat has the lifestyle people have aspired to achieve for a long time, but it was a place most people only vacationed to since they had they careers to go back to. Now they are realizing they could make Steamboat their home, seeing that the schools are great and they now have the flexibility to do it. As a result, they are focusing on their own dreams and making the move to Live in Steamboat

People were already having successful location neutral careers in Steamboat. The increased flexibility that many people now have, makes it easier for them to move here and enjoy the Steamboat lifestyle, instead of waiting for retirement. Most individuals already longed to be in Steamboat, but stayed put in order to reach their career goals. Now many of them don’t have to.

More year-round people brings more stability to local incomes, since there is less of an off-season and their incomes are not tied to tourism. Steamboat has gone from a tourism driven economy to a lifestyle driven economy, where our attractions are still a draw but our economy is no longer as reliant on tourism. This was already true before Covid. Tourism is much smaller of a factor now. The new individuals that are moving here are spending money at local businesses 48 weeks a year instead of just 1-4. This has upsides and downsides. Fortunately the YVHA’s Brown Ranch development on donated land should help with some of the downsides. 

Upsides

• A more stable economy with professionals working in many fields, which completes our transition to a lifestyle economy vs. being reliant on tourism.
• People are transferring their desire to be here to a drive to get involved and are making a big difference for local non-profits.
• Increased equity for locals who already own here and whose home is often a large part their retirement savings.

Downsides

• Affordability for locals who don’t own yet, leading to losing some cherished members of our community.
• Local businesses can’t serve their customers because they are under-staffed due to housing costs and shortages.
• Quality of life issues which is driving many people to look for moderation in promoting tourism. City council even pulled the measure to nearly double Chamber funding due to an outpouring of community feedback against the proposition in order to maintain our quality of life.

How is the Market Doing?

This year’s Q4 numbers in insolation look a tiny bit slower than a year ago. This is because of last year’s surge when the world began to open up. As we move into 2022, real estate contract activity is higher than a year ago. Inventory is still low but new properties are starting to come on the market after a pause in new listings over the holidays. This gives us hope that there will be some more options as we progress into spring. Higher prices generally bring more listings and some potential sellers and buyers are calling to get ahead of the expected rise in interest rates.

2021 Average Price gains

• Single family homes in the Steamboat Springs school district are up 38%.
• Luxury homes have increased 26%.
• Townhomes are up 19%.
• Condos are up 41% with many more sales in One Steamboat Place vs. few before.
• Homes in Hayden are up 28%.
• Homes in Stagecoach increased 22%.
• Phippsbrug / Yampa Oak Creek homes gained 55% with 15 homes selling for over $500K.

(each are a fair amount higher than the appreciation of most properties. Find out why in the sections covering each below)

It feels like the market is transitioning from a short term escape to Steamboat a longer-term trend of people spending much more to all of their time here. We have seen a big shift since Covid accelerated people’s ability to work from here part to full time. Students have now returned to school nationwide and many professionals have returned to the office, yet demand still remains strong. This has increased the demand for local property and values have increased as a result.

After weighing their options, most people see quality time outdoors with their loved ones & being part of a great community as a priority. They can be here significantly more than before and find value in being in Steamboat long term. They also see that other people are buying for the same reasons, making it sustainable.

YVHA - Hope for Locals Housing Moving Forward

One of Steamboat’s biggest strengths is our community. At the same time, the strength of our market has brought many challenges for locals looking for a place to live. Rental and purchase options that work for locals are few and far between making them very hard to get and expensive. This is a real problem because we are losing great local people and the key professions that keep Steamboat ticking are almost universally understaffed. Our quality of life here is dependent on the people that help keep Steamboat special or even functioning at a basic level. We value community and it’s hard to see Steamboat friends having to move elsewhere.

While I believe in a free market I also believe that we can’t afford to lose the core of our community. Fortunately, there is hope. The Yampa Valley Housing authority has been doing a great job building affordable rental apartments using a small tax we put in place a few years ago to leverage federal tax credits and there are 3 more projects in the pipeline, but it isn’t enough. We need a diverse range of rental and ownership opportunities for locals to keep our community strong long term. We are in a better position than most resorts with over 50% local ownership here in Steamboat vs. 13% in Summit County. I hope that YVHA’s efforts can maintain this.

As you probably know a very generous donor stepped up with a $24M donation to the YVHA to purchase the former Steamboat 700 / West Steamboat neighborhoods. This project, which is now being called Brown Ranch, is within Steamboat’s urban growth boundary and has been in our community plans to develop affordable / attainable housing for over 30 years. The two previous development plans that were pursued failed in the end. Now we have the chance to do this as a community if we come together and think creatively. In addition, we listed a property in the mountain area that is ideal for this and had the opportunity to connect with the YVHA who bought it. This was enabled by an additional $6M donation to deliver more housing in a great location near the mountain.

We are hopeful that the YVHA, the generous donors, the city, and the county can collaborate to put together smart plans and deliver great options for locals. We encourage them to think differently, remove the barriers that have stopped them before and provide a variety of housing options at a reasonable cost. The new City Council all supports this. Our hope is that this they will include reasonable deed restrictions that ensure they serve locals but don’t cause some of these properties to be foreclosed on if an economic downturn were to occur in the future. We have always had to strive to live in Steamboat so these properties still won’t be cheap given costs here. That said donated land and a large promise from the state for infrastructure costs is a huge help to provide more attainable options for locals to rent and own in Steamboat.

We hope that you find some insights in this report that are useful to you. At the same time, the market is very granular so if you want to know about how this affects your property or the ones you aspire to have please reach out. We will listen to your questions and give you personalized insights with absolutely no pressure. 

‍—Jon Wade - Broker/Owner

It has been interesting to see as shifts in the local market reflect some big trends we have seen in both Colorado and Nationally. People are now more flexible to be where they want much more often and others things have become less important to them. To evaluate what is happening, it helps to look back and consider a few things.

• After finishing strong in March 2020, Covid stalled us in April, followed by a strong pick-up in May and June as people decided they would rather be in Steamboat
• In July, 2020, things opened up even more as people began to enjoy the new freedom of living and working in the mountains--kicking the market into high gear.
• Q3 of 2020 was the first quarter that the new market was in force and now we are starting to compare to that quarter in addition to a strong Q1 and slow Q2 in 2020.
• Today, we are seeing the numbers moderate a bit, but still continue strongly, when compared to Q3 in 2020. This however, does feel like a good sign.

This year's Q3 numbers in insolation look a bit slower than a year ago. This is because of last year’s surge when the world began to open up. As we move into Q4 of 2021, October saw a lot of new activity in a month when things are typically slowing down. While inventory is still low, this is a good indicator that the market remains strong.

It feels like the market is now establishing a longer-term trend and we don’t see significant supply coming on to change that. We have seen a big shift since Covid--allowing more people to be in Routt County more of the time and ultimately increasing property values. We see many signs that this shift is becoming a long-term trend because students have now returned to school nationwide, and many professionals have returned to the office, yet demand still remains strong.

It’s true that Brown Ranch is expected to start delivering homes in late 2024 which will improve supply for locals. I see this as primarily meeting critical needs for the people who make our town special who the market has few if any options for now. We look forward to Brown Ranch opening up the dream of home ownership and more rentals that make sense to balance our market.

We are continuing to have great conversations with people regarding the market, their goals, and long-term plans as they consider various options. Some people decide to wait until other pieces fall into place or wait to see where the market goes. If so, we advise them to watch the market and prepare for when they are comfortable taking the next step.

After weighing their options, most people see quality time outdoors with their loved ones as a priority. They can be here significantly more than before and find value in being in Steamboat long term. Most people are confident that other people are buying for the same reasons.

Our goal at The Steamboat Group is to help you make informed decisions about real estate in Steamboat. We know that you are smart so we work hard to help you be smart about owning in Steamboat. Just let one of us know if you have any questions.

YVHA - Hope for Locals Housing Moving Forward

One of Steamboat’s biggest strengths is our community and the strength of our market has brought many challenges for locals looking for a place to live. Rental and purchase options that work for locals are few and far between making them very hard to get and expensive. This is a real problem because we are losing great local people and key professions that keep Steamboat ticking are almost universally understaffed. Our quality of life here is dependent on these people that help keep Steamboat special or even functioning at a basic level. We value these people and feel our Steamboat friends shouldn’t lose to a housing shortage.

While I believe in a free market I believe that we can’t afford to lose the core of our community. Fortunately, there is hope. The Yampa Valley Housing authority has been doing a great job building affordable rental apartments using a small tax we put in place a few years ago to leverage federal tax credits and there are 2 more projects in the pipeline, but it isn’t enough. We need a diverse range of rental and ownership opportunities for locals to keep our community strong long term. We are fortunate to have over 50% local ownership here in Steamboat vs. 13% in Summit County. All of our lives are better as a result.

The town is abuzz after the news that a very generous donor or two has stepped up with a $24M donation to the YVHA to purchase the former Steamboat 700 / West Steamboat neighborhoods. This project, which is now being called Brown Ranch, is within Steamboat’s urban growth boundary and has been in our community plans to develop affordable / attainable housing for over 30 years. The two previous development plans that were pursued failed in the end. Now we have the chance to do this as a community if we come together and think creatively. In addition, we listed a property in the mountain area that is ideal for this and had the opportunity to go under contract with the YVHA. This was enabled by an additional $6M donation to deliver many more units in a great location.

We are hopeful that the YVHA, the generous donors, the city, and the county can collaborate to put together smart plans and deliver great options for locals. We encourage them to think differently, remove the barriers that have stopped them before and provide a variety of housing options at a reasonable cost. Our hope is that this also includes reasonable deed restrictions that ensure they serve locals but don’t cause some of these properties to be foreclosed on if an economic downturn were to occur in the future. We have always had to strive to live in Steamboat so these properties still won’t be cheap given costs here. That said donated land and a large promise from the state for infrastructure costs is a huge help to provide more attainable options for locals to rent and own in Steamboat.

We hope that you find some insights in this report that are useful to you. At the same time, the market is very granular so if you want to know about your property or the ones you aspire to have please reach out. We will listen to your questions and give you personalized insights with absolutely no pressure. We know that if we take care of your needs, when you are ready, we will be successful too.

‍—Jon Wade - Broker/Owner

We are having many deep conversations with people regarding the market, their goals, and their thought process during this time. Some people are waiting - in that case, we advise them to watch the market and prepare until they are comfortable taking their next step.

After a good discussion of the pros and cons, most people see quality time outdoors with their loved ones as the biggest factor. They are confident that people are buying for the same reasons, they can be here more, and will value being in Steamboat long term.

Our goal at The Steamboat Group is to help you make informed decisions about real estate in Steamboat. We know that you are smart so we work hard to help you be smart about owning in Steamboat. Scroll down for a concise yet informative guide to what is happening in the Steamboat Springs Real Estate market - Notable trends, changes, and shifts over time. Just let one of us know if you have any questions.

‍—Jon Wade - Broker/Owner

The Steamboat Group - 6x Best of the Boat Real Estate Agent & 2x Best of the Boat Real Estate Firm.

The Steamboat Group gave over $90,000 back to our valley in 2020 and over $50,000 in 2021 so far to honor our commitment to helping keep Steamboat special.

We put our client's interests first, have very high standards for our group. Fortunately, people noticed and we were 50-205% more productive per broker than any other Top 5 Steamboat Firm in 2021.

We are proud to have helped 148 people/families in 2021 so far- the most of any team or agent.

We are grateful to be chosen by so many of you to help with your needs. 

We are having many deep conversations with people regarding the market, their goals, and their thought process during this time. Some people are waiting - in that case, we advise them to watch the market and prepare until they are comfortable taking their next step.

After a good discussion of pros and cons, some are taking a closer look at the market and proceeding cautiously with their long-term plans to be in Steamboat.

Others see quality time outdoors with their loved ones as the biggest factor and are confident that the market will perform well over the 5-20 years they plan to own here.

Our goal at The Steamboat Group is to help you make informed decisions about real estate in Steamboat. Scroll down for a concise, yet informative guide to what is happening in the Steamboat Springs Real Estate market, including notable trends and changes over time.

‍- Jon Wade - Broker/Owner‍

Our goal at The Steamboat Group is to help you make informed decisions about real estate in Steamboat then help enable you to reach your goals. Scroll down for a concise yet informative guide to what is happening in the Steamboat Springs Real Estate market - Notable trends, changes, and shifts over time.