Steamboat Springs Real Estate Market Update - Updated October 2023!

Steamboat Springs Real Estate Market Updates - 2023 3rd Quarter -

The Top 5 Steamboat Market Takeaways

1. There continues to be resiliency with signs of increasing strength, even as interest rates have increased. Q3 2023 total sales were only one million dollars lower than a year ago. People have had time to digest the changes and then thoughtfully continue towards their goals. New contract activity and Buyer interest are also strong so we feel good about how the year will end too.

2. Compared to 2019, which was a great year, average sales price and sales volume are up significantly, while units sold are down. This reflects how our limited inventory continues to increase real estate values in Steamboat. Compared to 2022, total sales were down. That Q3 was strong with sales 88% higher that said Q1 and Q2 combined We saw a fair number of people hesitate in Q2 2023 then they got more comfortable and came back strongly in Q3.

3. Interest rates are clearly not ideal yet interest rates ended Q3 at ~7.5% and Q3 saw sales of $337M vs $216M in Q2 2023. In Q3 2022 when rates were 6.5% the total sales volume was $338M vs. $337M in Q3 2023 when rates were 7.5%. While we look forward to lower rates it’s good to see people take a long term perspective and demand stay stable with rates up 1% over the last year (we thought it was more than that until we checked).

4. Our conversations with people buying right now show that while they don’t like current rates they understand this is closer to the long-term average for interest rates. They see the opportunity to refinance in the next few years since the Federal Reserve is nearing the end of rate increases and the majority of economists now expect them to start lowering rates in the 2nd half of 2024.

We are also seeing local mortgage brokers calculate the after-tax cost of the mortgage to help people see the net costs and cash buyers are still fairly active in the market. A fair number of buyers are also taking advantage of a less competitive market to get the right home for their long-term goals before competition returns while others that are waiting for rates to come down return to the market since they can refinance later.

5. Compared to 2019 through the end of September the market is up 43% from $500M to $723M. However, unit sales are down 16%. The reason sales volume is up with a decrease in units is because the average sales price has increased 70% from $614K in 2019 to $1.04M in 2023. YTD Average sales price for all property types in Steamboat Springs has increased 4% from $1.00M 2022 to $1.04M 2023.

‍—Jon Wade - Broker/Owner

Overall Top 5 Quick 2023 First Half Market Takeaways

1. We have gone from a great market in 2019 to a very strong Covid market and back. In 2023 so far, we are 27% higher than the 2019 sales volume. Through the first half of the year, we have seen $385M in sales in 2023 vs. $303M in 2019, which was a great year. When we compare to 2022, which was the peak of the Covid Escape, sales are down 35%.

2. Limited inventory has brought total $ sales down while most property values have increased due to more demand than supply.  For example, average prices for Single Family homes were $1.73M in 2023 vs. $935K in 2019, an increase of 85%.

3. Some people assumed property values peaked in the Spring of 2022, then in the fall some went down but most were stable or up. Things stabilized by January 2023 and most properties have appreciated as of July 2023. Just reach out and we can explain what is happening in your part of the market.

4. We are especially pleased to see continued buyer demand and resilient values out in the rural areas. During the great recession, the rural areas were both the first to see declines in value and had the biggest declines, so seeing values there holding strong is a particularly good sign for our market. 

5. Inventory averaged 129 residences so far in 2023 vs. 469 in 2019, which we thought was very tight then. This makes it clear that people who bought the last few years are in Steamboat for the long term. For perspective, prices started appreciating coming out of the Great Recession with inventory levels in the 800’s, so inventory under those levels is encouraging for values going forward.

Basically, we have very low inventory, almost no distressed sellers, and sales similar to 2019 which was a great year, just not amazing like the “Great Escape” we described as driving the market during Covid.

*While the average is down slightly - the valuation of any individual home has most likely increased.  Please reach out to Jon to learn more.

The market in Steamboat and Routt County is continuing to transition from the great escape during Covid, back to a lifestyle-driven market. What is a lifestyle market? It’s a place where the primary attraction is the lifestyle. This is the next step beyond a resort market in Steamboat’s case. A lifestyle market is primarily driven by the quality of life and amenities to the extent that locals (including people that have moved here full-time for the amenities) are a bigger portion of the economy than the tourism market. Tourism is obviously still important to Steamboat but our economy and market moved beyond tourism in the last 5-10 years.

In addition to the great lifestyle we enjoy here, Steamboat is unique among ski towns in Colorado because it has such a strong community. Much of that comes from our history as a ranching town and the great values that are ingrained in our local culture. These things have remained at the core of our community because so many locals own or at least live in town. Most ski towns have local ownership numbers in the 5-15% range, and the number that can afford to rent is similar. For example, local ownership in Breckenridge is 7%.

Ski towns losing locals, and their identity as a result, was something discussed in the 80’s. Rasta Stevie, a town councilman in Telluride was featured in the ski movie The Blizzard of Ahhs talking about how people came to Telluride because it’s cool and funky, but before they know it, it won’t be that way if the locals are gone.

Fortunately for us Steamboat has 53% local ownership. While it has gotten significantly harder for locals, it’s much better than in most resorts / still possible for locals to own or rent in town. That basic goal is far harder in other resorts. For those that can’t live in the City of Steamboat or prefer a slower pace, we have 3 great towns within 30 minutes of town that each have nice quality of life and a strong community, in addition to more affordable housing. It’s also true that anyone living in Routt County can genuinely claim Steamboat as their home because we are one big community that we refer to as Steamboat.

The mountains and the lifestyle are what brings people to Steamboat but it’s the community and our down-to-earth local values that keep us here.

Single-Family

• The market continues to shift upward for single-family homes price-wise. Of the 10 single-family homes that sold under $1M in the first half of the year, only 5 were in Steamboat Springs. The other 5 were in Toponas, Milner, and Clark. The fewer sales at lower price points also contributed to the increase in the average and median price increases. In 2022, there were 23 total sales under $1M for reference. Additionally, at the top end, we separate out the top 10% of sales to represent the luxury market - which helps to paint the best picture of the 2 distinct markets. In 2022, the highest sale in this segment was $3.15M. There were 6 sales above this in 2023 which means that the prices for Luxury homes in the top 10% of the market also increased.
• If you remove the 6 homes above $3.5M in this segment - the average sales price still showed a 4% change vs. last year. This is a good example of the resilience of our market and continuing demand to own a place here. This is good to see given the change in rates and economic uncertainty. Basically, we have very low inventory almost no distressed sellers, and demand similar to 2019 which was a great year just not amazing like the “Great Escape” we described as driving the market during Covid.
• Most single-family homes are worth more or at least the same now as the peak in the spring of 2022 with a few exceptions for homes with bigger issues, as many people were willing to take on more challenges to get a home at the peak of the COVID market. People are a step less willing to make big compromises now but are still striving in reasonable ways to get the right home that allows them to be in the Yampa Valley.

Luxury Single-Family

• With only 7 Sales in this segment, the variation in the price point of individual sales can really shift the stats above without being representative of the market. This segment makes more sense to discuss subjectively on what we are seeing when comparing similar homes vs. a year ago. Values are stable to up in this segment depending on the quality of the home and location but nowhere near the increase shown in the average and median prices above. There are just not enough sales to avoid being skewed by what happened to sell vs. a change in the market.
• Supply in this part of the market is even more limited than in the rest of the market and demand was there in the first half for several more homes at the same values or a step more as in 2022. The range of sales in 2022 was $3.4M-$7.5M. In 2023 the sales ranged between $4.0M-$9.0M
• The 2 homes that sold above the highest sale in 2022 were at $8M & $9M respectively. Both were spectacular homes on very valuable lots. The one for $9M was in Anglers with a big Mountain View. It was built by Guido Constantini who made a bit of splash in Steamboat for a few years before moving on. He added some things we don’t often see like a tower to capture more views and a cavernous living area with very tall ceilings that faces the mountain with a wall of windows. The other one was a Catamount Lake home with 38 acres that overlooks the lake for $8M.
• We feel fortunate to have represented the sellers on 2 of the 7 sales in this category.
 

Condos & Townhomes

• The story in this category is all about inventory, both the amount of inventory and the price points of the units that were available. Here are the inventory numbers for the first 2 quarters individually broken down, followed by what happened.
  Q1 2022 - 71 Q2 2022 - 130
  Q1 2023 - 72 Q2 2023 - 70
• In Q1 of 2022 and 2023, inventory was exceptionally low in the 40-60 unit range which limited sales as there was still fairly strong demand both years.
• In Q2 of 2022 and 2023 Inventory was a couple of steps better than the quarter before and almost the same inventory level, but fewer properties were coming on the market and not selling as fast in Q2 2022. Basically in Q2 2022, inventory came on faster and sold faster vs. in Q2 2023 inventory came on slower and sold a little slower.
• More inventory came on in June 2023 and has been selling more quickly in July so new contracts have picked up significantly since then.
• Average prices were down 13% in 2023 vs. 2022, but the median was only down 2% - so what happened? To start with values in this range are mostly up with some stable and very few down. There was a period in the second half of 2022 that a fair number were down but they have mostly come back.
• The lower average prices we see are clearly driven by the lower number of high-end properties available in this segment vs. 2022. In 2023 the highest sale was $3.4M. In 2022 there were 8 sales above this price point which is why the average price is down so far in 2023. If you remove the sales above $3.4M from 2022, there is a 2% decrease year over year which is the same as the median price change. If you look at the value of individual properties, as we do when we're analyzing sales, they are up as we mention above.
• Looking at the other end of the spectrum there were 22 sales under $500K in 2023 and 23 sales under $500K in 2022. Almost the identical number of sales under $500K but the $/sf increased 15% in this range. 2022 - $542/sq ft vs. 2023 - $623/sq ft

Hayden

• While the number of homes that sold was down there was strong demand for the ones that came on the market and sales were limited by low inventory. One of our favorite things is helping locals succeed and we were able to sell 5 of these 20 homes in Hayden so we have a particularly good sense for the strength of the market there. We love seeing more great improvements in Hayden like the new wine bar in the Granary that make Hayden a great destination for food and drink.
• Part of the reason sales volume in $ is up only 5% is that there were no sales above $700K in 2023 vs. 2 in 2022 - partially because fewer options were available in 2023. At the same time the entry level price point has shifted up with 1 sale below $300K vs. 4 in 2022. With the appreciation we have seen in Hayden due to the new school and more restaurants very few homes are worth less than $300K now. When people in Hayden call us about selling their homes we are particularly pleased to see the life changing equity that locals have built up over the last few years.
• Similar to Phippsburg/Yampa/Oak Creek this is a segment in which inventory and a few sales or different prices in a smaller market can influence the overall variables dramatically. We are seeing homes that are coming on and priced with the right amount of progress in the market selling quickly. The market in Hayden is performing well and was mostly limited by inventory so far this year. At some point when interest rates start to come down we expect to see both more demand and a step higher inventory and more people are willing to sell and buy the next home that fits.

Oak Creek/Phippsburg/Yampa

• As we mentioned in the overview at the top, homes that are priced well and marketed professionally are selling quickly. The home we helped sell in Oak Creek had a ton of interest, sold quickly and for more than the asking price.
• A beautiful home with a tricked out barn and 42 acres for $1.6M outside of Oak Creek contributed quite significantly to the increase in average sales price. Without this sale, the average increase would be a 16% increase instead of 48%. The median is also up 29% because in 2022 11 of 17 sales were under $400K vs in 2023 3 or 9 sales were.
• Oak Creek is continuing to be the most popular of the 3 towns in this grouping. In 2023 5 of 9 sales were in Oak Creek and in 2022 11 of 17 sales were in Oak Creek as well. Oak Creek generally has lower to mid-range value homes. Phippsburg and Yampa have more entry-level homes but some higher-end properties on larger parcels.
• While the sales volume is down, this segment is smaller in nature. We believe that both the amount of snow this winter reduced supply even further. A few less sales or lower inventory can bring sales down even though the market has remained strong. The biggest limiter is inventory not demand. Homes that are priced and marketed well are selling. We listed 3 of the 9 sales in this area and got our clients great results. If you are interested in learning how we helped these people reach their goals? Send us an email to learn more.

Stagecoach

• Similar to Oak Creek/Phippsburg/Yampa we believe that both the amount of snow this winter reduced supply even further. A few less sales or lower inventory can bring sales down even though the market has remained strong which is the case here.
• The biggest limiter is inventory at the lower and higher end price points. In 2023, there were only 4 properties that sold under $700K vs. 9 properties that sold under $700K in 2022. Additionally, the highest sale in 2023 was $1.3M, in 2022 there were 2 sales - at $1.4M and $2.8M respectively. Without these 2 big sales in 2020, the average sales price would have increased 15% which would be a better indicator of the strength of the market in Stagecoach.
• * In Hayden, Stagecoach and Oak Creek/Phippsburg/Yampa we have begun to add in condo and townhomes sales into the average sales prices as more properties of these types have been selling over the past year.

Steamboat Springs Real Estate Market Updates - 2023 First Quarter -

The spring market in Steamboat is here and is a couple steps more resilient than we expected. While we had a DEEP winter ❄️🥶 the local real estate market didn’t go into the freeze that many expected due to interest rates. The biggest limiter to real estate sales in our market continues to be inventory, followed at a fair distance by the things the news talked about most - like interest rates and the stock market. Demand remains strong by buyers, who are moderated by having only 80-85 residences available in Q1 vs normal of 4-500 (in the low 70’s in April) and a step or two more cautious given interest rates and stock market / economy. The inflation numbers continue to improve and the Fed is expected to raise rates only one more time so we are hoping to see interest rates (which are still around 6%) come down a step or two as we move into summer.

The increase of activity we were seeing in Late December and January continued throughout Q1 and into April. As a result $ Sales improved on a relative basis from what we saw in the 2nd half of 2022 (which was down 36% vs the second half of 2021), to 19% down in Q1 2023 vs Q1 of 2022. While sales are still down, it shows the drop moderating as we transition back to a more normal market where demand is still strong but mostly limited by inventory. To be clear we are not saying nothing has changed from the great relocation we saw during Covid, but the market is still strong compared to what we considered to be strong before Covid. In addition, it is worth pointing out that we are not seeing any exodus of people that bought during Covid based on the people we are talking with.Inventory continues to go down from the still "low" high of 180 units last July and the 358 residence we had in Fall of 2019 before Covid - which we thought was really tight until Covid hit.

Single-Family

• The market continues to shift upward for single family homes. Of the 5 single family homes that sold under $1M in the first quarter of the year, only 2 were in Steamboat Springs. The other 3 were in Toponas, Milner and Clark. The fewer sales at lower price points also contributed to the increase in the median. Additionally, at the top end, we segment out the top 10% of sales to represent the luxury market - which helps to paint the best picture of 2 distinct markets. In 2022, the highest sale in this segment was $3.45M. There were 2 sales above this in 2023 at $3.9M and $4.5M.
• If you remove the 2 homes above $3.5M in this segment - the average sales price showed a 0% change YOY. This is a good example of the stability we are seeing in the Steamboat & Routt County markets which is impressive given the change in rates and economic uncertainty.
• Most single family homes are worth about the same now as the peak with a few exceptions for homes with bigger issues that people were willing to take on more challenges to get a home at the peak of the market. People are a step less willing to make big compromises now but are still striving in reasonable ways to get the right home that allows them to be in the Yampa Valley.

Luxury Single-Family

• With just 3 sales in this segment in Q1 2023, individual sales are going to really determine a lot of the statistics above without being representative of the market. This segment makes more sense to discuss some of the sales individually and talk more subjectively on what we are seeing when comparing similar homes vs. a year ago. Supply in this part of the market is even more limited than the rest of the market and demand was there in Q1 for several more homes at the same values or a step more as in 2022.
• The range of sales in Q1 2022 was $3.5M-$4.6M. In 2023, the 3 sales were all above the highest sale in 2022. Here are the 3 sales prices and a few comments:
• 125 Little Kit. We sold this spec home with the condition that it be completed by the Buyer. The list price was $6.25M with the final close price defined as the contract price less the budget remaining to complete the home or $6.45M - $1.47M = the close price of $4.98M.
• 32320 County Road 20 - $5.25M. This home is in the south valley in a great location so the lot contributes much more to the value than the average. It was on the market for a long time due to pricing that didn’t account for the lower quality of the home and a seller that started to build a new home on the parcel then tore out the foundation. Selling at this price given it’s challenges is a fairly positive sign for the market.
• 1243 Anglers Drive - $9M - This is a very large beautiful home in one of Steamboat’s most desirable neighborhoods that sold for $1,103/sf due to the quality of the lot and very high end finishes moderated by the discount a larger home takes on a $/sf basis. It was built by Guido Constantini who made a bit of splash in Steamboat for a few years before moving on. He added some things we don’t often see like a tower to capture more views and a cavernous living area with very tall ceilings that faced the mountain with a wall of windows.
• It’s interesting to note that another home that we listed at 1835 Hunters Drive sold for $4.5M but isn’t included in our market report definition of luxury as the Top 10% of sales because of the lower number of sales we typically see in Q1 and the higher average prices we are seeing. If it and the 2nd highest sale noted in Single Family homes homes were included, the units sold would be the same. This shows how with the small number of homes in this segment 2 less sales that can naturally happen without the market changing can dramatically move the top level stat. This is one big reason that we dig into what is happening in the market on a deeper level vs. just the top level stats for 1-3 categories.
 

Condos & Townhomes

• Value for any particular condo in the green zone that allows nightly rentals is flat to up slightly while some townhomes are flat and some are down 5-7%. For example, the Eagle Ridge condos that sold in Q1 2023 are still at peak prices while the value of two Eagle Ridge Townhomes in the same location were down. The twist is that the condos were not on the market at the same time so they didn’t have to compete, the townhomes were on at the same time and one had a remodel. The result is that the prices for both townhomes were a bit lower than if they were on one at a time and strangely the remodeled one sold for less than the traditionally styled one that we had listed.
• Average sales price was up 4% and the median was up 17%. The reason for this difference is there were actually more sales in the middle of this segment in 2022 (which brought the median up) and there were higher end sales in 2022 which tempered the average sales price from increasing the same 17%.
• The sales under $500K were almost identical in number. In 2023, there were 13 sales were under $500k vs. 14 of the sales in 2022 were under $500K. While the number of sales is flat the size of a place you can get for under $500K is getting smaller with five 2 bedrooms sold this year vs. 7 last year and the average size went down 11%.
• The primary driver in the increase in the median prices in 2023 was the increase in sales from $500K -$1M. In 2023, 32 of 71 of the sales were between $500k-$1M vs. in 2022 38 of the 71 of the sales were between $500k-$1M.
• In 2023, 26 of the sales were over $1M. In 2022, 19 of 71 sales were over $1M. The reason the average did not increase as much as the median was because in 2023 the highest sale was $2.3M. In 2022, there were 3 sales above $2.3M - tempering the average from increasing at a similar rate to the median.
• Moving forward we have combined Condos and Townhomes into one category. Buyers are often remarkably neutral between them when presented the choice and their price ranges mostly overlap. What is legally a condo can be a townhome for all practical purposes in Steamboat. While most people think of the difference between condos and townhomes is that townhomes own the land and having a garage, the lines are often blurred, owning the land makes little practical difference outside of duplexes, and they share more in convenience than their differences.

Hayden Homes

• While the number of homes was down there was strong demand for the ones that came on the market. One of our favorite things is helping locals succeed and we were able to sell 4 of the last 8 homes in Hayden so we have a particularly good sense for the strength of the market there. Part of the reason sales volume in $ is down is that there were no sales above $700K in 2023 vs. 2 in 2022 because none were available in 2023. At the same time the entry level price point has shifted up with no sales below $300K. With the appreciation we have seen in Hayden due to the new school and more restaurants very few homes are worth less than $300K. When people in Hayden call us about selling their homes we are particularly pleased to see the life changing equity that long term locals have built up over the last few years.
• Similar to Phippsburg/Yampa/Oak Creek this is a segment in which inventory and a few sales in a smaller market can influence the overall variables dramatically. Anecdotally, we just listed (and went under contract) with a home in Hayden in less than 3 days. We are seeing homes that are coming on and priced with the right amount of progress in the market selling quickly.

Phippsburg /Yampa/Oak Creek Homes

• We feel fortunate to have had the opportunity to have helped 2 of the 3 individuals in the Oak Creek & Phippsburg get their homes sold in the first quarter of 2023. As mentioned in the overview at the top, homes that are priced well and marketed professionally are selling quickly. The home we helped sell in Oak Creek had a ton of interest and sold quickly and for more than asking price in this market.
• We are pleased to see continued buyer demand and resilient values out in the county. During the great recession the rural areas were both first to see declines in value and had the biggest declines in value so seeing them holding strong is a particularly good sign for the market in the Yampa Valley.
• Oak Creek is continuing to be the most popular of the 3 towns in this grouping. In 2022, 22 of 34 sales were in Oak Creek and in 2021, 26 of 45 sales were in Oak Creek as well. Oak Creek generally has lower to mid-range value homes. Phippsburg and Yampa have more entry level homes but some higher end properties on larger parcels.
• While the sales volume is down, this segment is smaller in nature. We believe that both the amount of snow this winter reduced supply even further. A few less sales or lower inventory can bring sales down even though the market has remained strong which is the case here. The biggest limiter is inventory not demand. Homes that are priced and marketed well are selling. If you are interested in learning how we helped these people reach their goals? Send us an email to learn more.

Stagecoach

• In Hayden, Stagecoach and Oak Creek/Phippsburg/Yampa we have begun to add in condo and townhomes sales into the average sales prices as more properties of these types have been selling over the past year.
• Similar to Oak Creek/Phippsburg/Yampa we believe that both the amount of snow this winter reduced supply even further. A few less sales or lower inventory can bring sales down even though the market has remained strong which is the case here. The biggest limiter is inventory not demand. There was only 1 single family home that sold in this segment in 2023 vs 5 in 2022. Additionally, 2 of these homes were over $1.1M and the only single family home that sold in 2023 was $700K.

Steamboat Springs Real Estate Market Updates - 2022 End of Year -

Single-Family

• The value of most individual homes has increased 5-10% in the last year but is a step or two lower than it was in the spring of 2022 as we explain in item 4 above.
• The increase in the average sales price in 2022 was helped by shifts in the number of entry level and high-end homes sold. Two of these shifts included 43% less sales under $700K (30 in 2021, 17 in 2022) and 111% more sales above $3M (9 in 2021, 19 in 2022).
• The middle of the market ($1-3M) was pretty steady year over year. In 2022, 48% (98 of 205) of homes that sold were between $1-$2M vs. in 2021, 44% (118 of 268) of the homes that sold were between $1-$2M. In 2022, 19% (38 of 205) of homes that sold were between $2-$3M vs. in 2021, 22% (58 of 268) of the homes that sold were between $2-$3M.
• Interestingly, there were 8 manufactured homes in 2022 that sold vs. 2 in 2021. This moderated the increase in average price by 3% The change without the manufactured homes would have been an increase in 13% year over year.
• See Luxury Single Family Homes below for how the top 10% of the market (by units) is doing, so a few luxury sales don’t distort what is happening in the core of the market.

Luxury Single-Family

• This segment includes the top 10% of sales and has shifted up as the market has appreciated. In addition, more higher-end homes are being built on very expensive land now which also pulls up the top of the market. Looking at these separately gives us better insight into both the luxury and traditional single-family home markets
• In 2022, 52% (12 of 23) of the sales were between $5-7.5M vs only 27% in 2021 (8 of 30). This was the primary driver in the increase in the median price point in this segment (and the average).
• The average price is up not only because of the increased percentage of homes in the $5-7.5M range, but also 2022 saw the highest sale in the past 2 years in single family homes. In 2022 there was one sale of a luxury ranch home on the elk river for $13.2M vs. in 2021 there were 3 sales between $10-$11.5M.
 

Townhomes

• The three biggest themes for townhomes are: even lower inventory than the rest of the market, the upward shift in the entry-level segment of this market, and the significant increase in townhomes sales over $2M. That said the impact of some townhomes sales in 2021 that were priced a year or two earlier did push up the percentage appreciation higher (see the last bullet point)
• The increase in the average sales price reflects the lack of inventory, increased demand, and the construction of higher end townhomes that are selling at higher price points (around $2-4M).
• Given the high demand and the cost of homes, the prices of townhomes are increasing with many moving above the traditional entry to mid-level price points. In 2022, 4% (5 of 128) of the sales were below $450K vs. in 2021, 22% (44 of 203) of the sales were below $450K. Many people have done beautiful remodels in this price range compared to a year ago, thus raising the average sales prices from when most were original or just modestly remodeled.
• Even with a 37% decrease in the number of units sold, year over year there were actually more units sold over $1M in 2022 vs 2021 (86 in 2022, 85 in 2021). In percentages of the sales this looks like 67% (86/128) in 2022 above $1M vs. 42% (85 of 203) above $1M in 2021.
• Any individual townhome likely increased anywhere from 15-20% in value in the last year.
• A year ago we saw several closings for new townhomes at the base of Hilltop Parkway and Urban Way where the price was set 1-2 years earlier. As such, it was lower than it would have been listed for and sold in 60 days. This made the average appreciation a few steps higher than if they had closed at what they were worth a year ago. Basically those townhomes already had a year or two of appreciation beyond the prices individuals paid when they closed a year ago. This made the average appreciation higher this year.

Condos

• As in some other parts of the market, the shift in the balance between different price points tells an interesting story that the shift in the average and median price do not.
• In 2022, only 15% (35 of 239) of the sales were under $500k vs. 37% (138 of 373) of the sales in 2021 were under $500K.
• In 2022, 61% (146 of 239) of the sales were between $500k-$1M vs. in 2021 47% (177 of 373) of the sales were between $500k-$1M. Since most condos in Steamboat are now worth more than $500K, the proportion of sales in this price range has continued to increase.
• In 2022, 24% (58 of 239) of the sales were above $1M vs in 2021, 17% (56 of 373) of the sales were above $1M as demand has increased. Additionally, in both 2022 and 2021, the average sales price of condos above $1M was $1.8M both years.
• The biggest shift was in the lower price point up into the middle segment as VERY few condos are available under $500K.
• Demand in this part of the market has been particularly strong as more people look to get a place in Steamboat. For many it is serving as an opportunity to get a foot in the door and most of the condos sold are in the green zone (allowing short term rentals by right), which we expect to be a positive for them over time. We should qualify that the 9% STR tax may have a detrimental effect on rentals for some period of time so we are curious to see how this develops over the next couple of years. Give us a call if you would like to discuss some scenarios on how this may play out.

Hayden Homes

• Similar to many other segments, the decrease in the number of sales was primarily due to a decrease in inventory. Homes that are coming on the market that are priced right are selling in a reasonable time.
• Similar to other segments - there are less properties available at lower price points. In 2022, only 33% (15 of 46) homes sold were under $400K vs. in 2021, 42% (35 of 84) homes sold were under $400K.
• There was a higher percent of units sold over $500K in 2022 vs 2021. In 2022, 35% (16 of 46) in 2022 above $500K vs. 20% (17 of 85) above $500K in 2021.
• We love seeing Hayden continue to blossom as the new school brings more families, the coffee shop and brewery bring more charm & more people hang out downtown. People are enjoying the slower pace, deeper connections, and charm of small town living. This is very exciting to see and we hear that the new Francosi’s with dinner and cocktails is already a great addition.

Phippsburg /Yampa/Oak Creek Homes

• People are both seeking the charm of our rural towns and their affordability. We are seeing locals move further out for more value and people continue to value the beauty of living in the country.
• To be clear, the value of any individual home in this area has not gone down from a year ago. Small changes in the price point of the particular homes that sold have large effects on the overall numbers in this segment. In 2022, the highest sale was $1.2M, driven by more mid-range homes being available and fewer higher-end homes. In 2021, there were 3 sales above $1M, with the first at $1.2M and the other at $2.95M.
• Oak Creek is continuing to be the most popular of the 3 towns in this grouping. In 2022, 22 of 34 sales were in Oak Creek and in 2021, 26 of 45 sales were in Oak Creek as well. Oak Creek generally has lower to mid-range value homes. Phippsburg and Yampa have more entry level homes but some higher end properties on larger parcels.
• We love seeing the restaurant scene in Oak Creek continue to increase in quality and quantity. Our group always looks for a chance to stop for a bite to eat when we are out that way. We would be remiss if we didn’t mention the Antlers restaurant and bar in Yampa, which is the perfect spot for dinner after a scenic drive bike ride or hunting trip. It is also exciting to see Oak Creek working on a new greenway trail through town. The sense of community in this area is very strong and draws many people.

Stagecoach

• As Steamboat Springs home prices continue to increase we expect Stagecoach will continue to be an active market, and see more $700K+ sales. We love Stagecoach for its access to great recreation at the reservoir, fishing in the public tailwaters, and access to trails in the National Forest.
• As market segments shift, we are constantly looking at the sales data to better represent what is occurring in each segment. This is the first time we are including townhomes in the stagecoach segment and we did include them in the 2021 numbers
• In 2022, 37% (17 of 46) of the sales were townhomes - all of these sales were under $580K. In 2021, 24% (12 of 49) of the sales were townhomes, all under $450K. As home prices increase in Stagecoach, we anticipate townhomes in this area to increase in popularity, similar to Steamboat townhomes. For now, these are all included in one segment for Stagecoach.
• The average price growth in this segment of the market was due to an increase in the price points of the individual homes sold. In 2022, 23 of 46 (50%) of homes that sold between $700K-$1M. In 2021, 16 of 49 (33%) of homes in this segment that sold between $700K-$1M.
• All around Routt county people are both seeking the charm of our rural areas and their relative affordability. We are seeing locals who own in Steamboat move further out to recreate on land in some form for a slower pace than Steamboat. Like we have seen for at least 20 years, people are also continuing to move out to these areas for more value. Luminate Broadband and Zirkel Wireless continue to bring gigabit internet to rural areas which is a plus.

Steamboat Springs December 2022 Real Estate Market Updates

Steamboat Springs Market Update: 2022 December Market Report

Steamboat Springs November 2022 Real Estate Market Updates

Steamboat Springs Market Update: 2022 November Market Report

Steamboat Springs 2022 Real Estate Market Updates

Steamboat Springs Market Update: 2022 Third Quarter Report

Steamboat Springs 2022 Real Estate Market Updates

Steamboat Springs Market Update: 2022 Second Quarter Report

Steamboat Springs 2022 Real Estate Market Updates

Steamboat Springs Market Update: 2022 First Quarter Report

Steamboat Springs 2021 Real Estate Market Updates

Steamboat Springs Market Update: 2022 Year End Report

Steamboat Springs Market Update: 2021 Third Quarter

Steamboat Springs Market Update: 2021 First Half

The Steamboat Update

As you know real estate markets across the country are busy and often described as crazy. Our goal here is to dig deeper and explain what we are seeing here in Steamboat, along with the top level reasons behind it. That way you are in a position to make smart choices for yourself.

Things are busy in Steamboat and we are seeing multiple offers on many but not all properties that come on the market. We talk with brokers across the country in our key feeder markets like Denver, Houston, Minneapolis, other resorts, and the big cities on the coasts. So far things are much more reasonable in Steamboat than in most of these cities.

While it does feel crazy to us we think a better description is competitive. On the most basic level, more people can now be in Steamboat more of the time. Inventory is about a fourth of what we had in the Spring of 2020, which we thought was tight at the time. It comforts us to see that nearly all buyers have come to Steamboat for years and planned to own a place here at some point. Additionally, it is comforting that purchases have been around 50% cash purchases for 5 years, the loan process is truly qualifying buyers, there are very few investors, and people plan to own for a long time. While encouraging that 50% of purchases are cash purchases, it is important to remember that this means about 50% of buyers are successful with purchasing homes with loans. We have strategies to beat cash offers, so don’t lose hope.

As we all know, there will always be ups and downs in any market so we recommend buying or owning a place you can afford when the economy is weaker because owning in Steamboat should make your life better. Be careful if anyone tells you it will only go up.

‍Steamboat has always been a great place to be and now more people have the flexibility to be here since they can work from home. Steamboat’s special community, great school and overall lifestyle is even more desirable. Location-neutral workers in Steamboat have gone from 30% in 2019 to (we believe) over 40%.

Long term, the experts are predicting that over twice as many people will continue to work from home. This also means many people that could be here 1-4 weeks before can now be here 1-4 months a year since they have proven their ability to perform remotely and highly value that flexibility.

The real story on the demand side is that more people can now be in Steamboat for extended periods of time or even full time. Nearly everyone who is buying plans on using their home and it is not just for investment. At the same time, buyers are thoughtful about the market and feel good about Steamboat long term.

On the supply side, the amount of new development has been much lower than demand.

This has been the case for a long time, even in a strong market, as there has been very little new development in both neighborhoods and big buildings. In 2005-2008, there was a huge amount of development, speculative buying, and high levels of supply, which is not the case now. In addition, some people have waited to sell given the events of the last year and others are concerned that they won’t be able to get something else if they do sell. With inventory at 1/4 or less of 2019 (a strong market), it would take twice as many Sellers coming to market and half as many buyers or some combination to return us to a market like 2019.

Please reach out with questions. We have strategies that work well to achieve your goals in all of these situations.

Reading the Segments Below - Some Context

As you look at this report you will see some pretty dramatic increases in average sales price year-over-year. However, we must look beyond the numbers to fully make sense of these increases. For example, the average price of Single Family homes in the Steamboat School district increased 70%. However, the price of any particular home didn’t go up nearly that much. The truth is, there were fewer sales on the lower end of the price spectrum and many more sales of higher-priced homes. This resulted in the averages rising considerably more than actual values increased. We encourage you to look next to each graphic for the story behind what is happening in each part of the market.

Right now we are seeing large numbers of homes for sale, at all price points, with just a few pictures, often with a cell phone, not doing a 3D tour, and skipping most marketing. We know that while the property will likely still sell we are committed to going above and beyond to get you a great result. We believe it is time to keep improving, continuing to work hard to set the highest standard for marketing, target the most likely buyers to create excitement / get more offers and striving to get our clients the best terms. If you are looking to sell and then buy another property, we have several strategies to make this work. Give us a call and we can discuss how to achieve your goals.

YVHA - Updates for Housing Moving Forward

All of this has brought many challenges for locals including the low availability and high prices of places to rent or buy. One of Steamboat’s biggest strengths is our community. Our quality of life here is dependent on the people that help keep Steamboat special. While I believe in a free market I also believe that we can’t afford to lose the core of our community. 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.

That definitely helps but we need a 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 and all of our lives are better as a result.

Fortunately, a very generous donor or two has stepped up with a $23M donation to the YVHA to purchase the former Steamboat 700 / West Steamboat neighborhoods project within our urban growth boundary. This area has been in our community plans to develop with a large component of affordable housing for locals for over 30 years. The two previous developments plans that were pursued failed in the end. We can do this as a community if we come together and think creatively.

We are hopeful that the YVHA, the generous donors, the city, and the county can come together to solve this. We encourage them to remove the barriers that have stopped it before and provide a variety of housing options at a reasonable cost. The hope would be this also includes reasonable terms that 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. However, the hope is these properties can be achievable options for more individuals.

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.

Steamboat Springs Market Update: 2021 First Quarter

The Overall Market

As you know real estate markets across the country are busy and often described as "crazy". Our goal here is to dig deeper and explain what we are seeing here in Steamboat, along with the top-level reasons behind it.

Things are busy in Steamboat, and we are seeing multiple offers on most but not all properties that come on the market. We talk with brokers across the country in our key feeder markets like Denver, Houston and Minneapolis, as well as other resorts and the big cities on the coasts. So far, things are much more reasonable in Steamboat than in most of these cities.

While the market may feel "crazy" , we think its better described as competitive. Steamboat has always been a great place to be and now more people have the flexibility to be here since they can work from home. Location-neutral workers in Steamboat have gone from 30% in 2019 to well over 40% now. Long term, the experts are predicting that over twice as many people will continue to work from home as in 2019. I’ll add that this also means people that could be here 1-4 weeks before can now be here 2-4 months a year.

The real story on the demand side is that more people can now be in Steamboat for extended periods of time or full time. Most people who planned to be here can do it earlier now.  Nearly everyone who is buying plans on using their home and it is not just for investment.  Buyers have been very well qualified for their loans unlike in 2007 and 50% or more are purchasing with cash.

On the supply side, the amount of new buildings has been much lower than demand for a long time. There has been very little new development (neighborhoods) for a long time. In addition, some people have waited to sell given the events of the last year, and others are concerned that they won’t be able to get something else if they do sell.  If you fall into the later, please reach out with questions. We have strategies that work well to address selling and buying here in Steamboat at the same time.

As you look at this report you will see some pretty dramatic increases. However, many of these increases can be described when looking at the specific details behind just the numbers. We encourage you to look next to each graphic for the story behind what is happening in each part of the market.

As we work with Buyers we are having deep discussions on what is happening in the market and their goals.  When the right property comes on the market we coach them on winning strategies along with the tradeoffs involved. Then they can make the best choices for them as they choose the price and terms to make an offer that is much more likely to be successful. We are also having a fair amount of success reaching out to owners of properties that our buyers are looking for and reaching a deal before they hit the market so ask us if that is appealing to you.

For Sellers, we know most things will sell quickly, but at the same time, it is even more important to nail the marketing than get it in front of the most qualified buyers that are looking for similar properties immediately. Because with more offers we can significantly increase your chances of getting not only a higher price but getting you an appraisal gap, waiving the appraisal, or a cash offer along with limited contingencies so you have a smoother closing process.

Right now many brokers are taking just a few pictures, often with a cell phone, skipping most of their already limited marketing tools, not doing a 3D tour so people out of town can see if it is fit, etc. We know that while the property will likely still sell we are committed to going above and beyond to get you a great result.  We believe it is time to keep improving, continuing to work hard to set the highest standard for marketing, target the most likely buyers to create excitement / get more offers, and are doing even more now to get our clients the best terms. If you are looking to sell and then buy another property, we have several strategies to make this work so don’t give up, give us a call and we can discuss how to achieve your goals.

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.

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