Steamboat Springs Real Estate Market Update - Updated May 2024

⬇️ Scroll Down just Below the Table of Contents for the 2024 First Quarter Market Report 😎

Steamboat Springs Real Estate Market Updates - 2024 First Quarter

The First 3 Months in 2024 Steamboat Market Takeaways

It’s Spring in Steamboat! We love winter and this was another great one that kept the skiing good well into May for those of us who like to earn our turns. But we will also say that it is sure nice to see the sun again.

How is the market in Steamboat? People continue to value time in Steamboat and that’s not surprising. What is nice to see is that demand continues to be strong and there is no rush for the exits even after the Great Escape to Steamboat during Covid. The $200M in improvements to the ski area that were completed in 2023 are a driver for sure but this is just supporting the long term appeal of our beautiful valley. Inventory is still the biggest limiter of sales, but homes on the market are up about 30% since this time in 2023. After being especially low in Q1 as we come into spring, inventory is now back up into the range it was at during most of Covid. It is worth noting that this is still only 40% of what inventory was in 2019.

We are fairly unique in that local ownership here is over 50% compared to 7-12% in other Colorado ski towns. Most ski towns provide a great lifestyle with lots of things to do in a beautiful place. In Steamboat we have a wonderful sense of community. This is both because we started as a ranch town and because our local ownership is so high. This has also contributed to people keeping their homes here for longer.

Interest Rates are still having an impact but more people have adjusted to where they are for the time being and see them coming down over the next few years. As a result they are moving forward with their plans and many see the benefit of finding the right place before lower interest rates cause the people who are waiting to come back and compete in greater numbers.

Total sales in Routt County were up 24% over last year in Q1 to $204M. Unit sales continue to decrease due to limited supply. They are down 11% to 164 units sold. To be clear it’s not a question that if we had more supply sales would be higher and we are seeing that as we enter spring. Average price is up 39% to $1.24M. Don’t get too excited by this big jump - just keep reading to see the explanation on why the average price changes are drastically up while the actual appreciation is back to reasonable levels.

As you saw for the market as a whole, each segment of the market saw huge percentage gains in the averages due to activity at the high end of pricing in what is normally a quiet quarter and also little activity in the low end of the market. It is likely that higher interest rates are limiting the sales in the more affordable parts of our market, but the demand remains strong across the market which points to even tighter entry level supply being a bigger limiter. Part of this is also that more locals tend to buy and sell during the spring and summer. It’s also worth pointing out that this time of year there are few sales so a few big sales and fewer entry level sales really skew the numbers.

If you are wondering if prices will fall due lower sales and higher interest rates - prices are increasing closer to normal levels for a strong market due to limited inventory and strong demand. How about distressed sellers? As of this writing there is only one active foreclosure in process which is the lowest we have seen in nearly 20 years. It is a townhome in a desirable area with a loan that is less than1/3 of the property’s value so the owners are very likely to either resolve it with their lender or sell it on the normal market and move on with significant equity in their pocket.

Looking forward as we move into our peak selling season of May to October inventory remains low but is up enough to give buyers more options and we expect this to continue. Buyers and sellers are acting rationally to achieve their long term goals. Soon more locals will enter the market and more visitors will be in town to look for the right place to spend time.

We are seeing more developments in planning and the Amble Condos just off the base area is preparing to break ground in 2024. Other developments in planning in the mountain area include the Astrid just below Edgemont, some pre-planning activity in Ski Time Square, and preliminary applications for the remaining 9 acres or so in Wildhorse Meadows. Near town Overlook continues to built out the infrastructure for building lots.

The Stagecoach Mountain Ranch private ski area, golf and fishing resort by Discovery Land Company continues to prepare their final application which is now expected in June, has submitted more plans with Morrison Creek Water district, plans for camps to build the development, increasing preparations for the new gondola they are installing this summer and more.

If you have questions on the market as is relates to your goals, what might happen near you or regarding new developments just reach out to one of our exceptional brokers at The Steamboat Group. We go the extra mile to know what is happening so we can be the best possible resource for you.

—Jon Wade - Broker/Owner

Single-Family

  • Is the average single family home value in Steamboat really up 61% vs last year in value? No but we saw a big burst or very high end Single Family home sales in Q1. For all of 2023 the average single family home price was $1.75M. We have seen moderate appreciation since then but the 61% increase in the average is due to the burst of spectacular homes on very valuable lots much more than appreciation. Here is a breakdown of what the price point of the homes where that did sell. Demand remains higher than supply in both single family home categories which limited sales so now is an opportune time to get a solid price for your home if you decide to sell.
  • Outside of the top end homes in this segment, for the most part there were not any dramatic shifts, but overall prices are increasing.
  • In 2023 there were 3 home sales below $700K. In 2024, there were 0 sales below $700K. The market continues to shift upwards in the lower price points. There are still a few homes out there for $700K or less but they are few and far between in the Steamboat School District. You can find average home prices under $600K in Hayden and Oak Creek which are considered a normal commute in many places.
  • In 2023 there were 9 homes that sold between $1-2M. In 2024 there were only 6 homes that sold between $1-2M. In 2023 there were 4 homes that sold between $2-3M vs 6 homes in 2024 that were between $2-3M
  • Where there was a real shift was in the homes at the top of this segment. In 2023, the top 3 sales (with the top 10% removed to represent the luxury segment) were $3.95M, $4.3M and $4.6M. In 2024 the top three sales were all above the top sales in 2023 at $6.9M, $7.2M and $7.5M. If these sales were removed the average sales price of single family homes would have been $2.0M, which would have been a 16% increase to the average sales price vs 2023. This is a closer to a realistic representation of the average sales price appreciation of any one home but it still about twice as high as appreciation due to having no homes sell under $700K this quarter.

Luxury Single-Family

    • 2024 was unique. As seen in the single family segment above the very high quality and special locations of the individual homes that sold are what pushed up the average and median numbers so high this segment. Our market is small enough that numbers can be skewed by which particular places sold vs. actual changes in value and this is particularly true in a quarter where so few homes sold.
    • The 2 homes in this segment were both stunning new mountain contemporary homes on approx. $3M lots in Alpine Mountain Ranch. They were also on the same street and sold for $10.2M and $12M Homes at this level do not sell very often and both happened to sell in the first quarter, which as you can imagine boosts the numbers dramatically.
    • In Q1 2023 the homes that sold were at $4.9, $5.2, and $9M. Those homes were very high end luxury homes, but the specific homes that sold in 2024 were a couple levels nicer.
    • We feel very fortunate to have represented the parties in 2 of the 5 sales that occurred in 2024 and 2023 in this segment. Luxury isn’t about the name of the firm it is about the expertise and quality of the experience a firm provides.

Condos & Townhomes

  • The $200M in improvements to the mountain are having a noticeable effect on demand and thus the values of the premium ski in condos at the base area over the last 6 months. This is also true for the newer mountain contemporary townhomes a step or two off the base in the green zone for short term rentals. The improved experience on the mountain and Steamboat’s position as Alterra’s premier owned resort are definitely being seen in our market.
  • In 2023, 18% (13 of 71) of sales were under $500K vs 4% (2 of 54) of sales under $500K in 2024. A large decrease both in units as well as by percentage (from 18% of this part of the market to 4% this year). Appreciation is taking the market beyond this price point.
  • In 2023, 45% (3 of 71) of sales were between $500K-$1M vs 48% (26 of 54) of sales between $500K-$1M in 2024.
  • In 2023, 34% (24 of 71) of sales were between $1M-$2M vs 31% (17 of 54) of sales between $1M-$2M in 2024.
  • Both of these segments, while lower in units sold, were a similar portion of the market year over year. The middle of the market being relatively stable is also why the median only increased 6%
  • There is a similar story to single family homes for luxury units. The highest sale in 2023 was $2.3M when nicer units were scarce. In 2024 there were 7 sales above $2.3M. If you remove all of the sales above the highest sale in 2024 the average sales price would have been $1.1M a 17% increase year over year. Showcasing this both in condos/townhomes is not to discount sales of properties but to demonstrate how these sales at the higher end of the spectrum do affect the overall average sales price.

Hayden

  • This was a lack of inventory is the story here in Hayden - as of this writing on May 6th there are only 10 properties available and only 3 under $650K. The remainder of the properties are all larger homes and high priced ranches. Hayden is more driven by school schedules so we expect to see more options soon but still limited supply which is true overall in our market.
  • In 2023, the range of sale prices were from $305K-$700K. In 2024 the range was from $460K to $640K - this is why both the average and the median are up significantly. Values of any particular homes have increased just probably about 1/3 of the average above.
  • With the appreciation we have seen in Hayden due to the new school, more restaurants and more good things going on in town there are now very few homes worth less than $350K. 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.
  • Heading into the summer it is also incredibly exciting to see lots of details and things being updated around town. Some of the things our team has noticed are improved signage in some of the parks, the town park tennis courts being refinished and the park right next to dog park is looking tobe in great shape. In addition, the Hayden Rec Center Reopening mid-May with new finishes and new equipment / nice updates including an Art studio which is new. Finally some new short term rentals opening soon in Main St Apts

Oak Creek/Phippsburg/Yampa

  • It is difficult comparing only 3 sales in 2023 vs 4 sales in 2024 so the percentage changes just are not that meaningful in an area that is more active in the summer. We will be watching this area closely if Stagecoach Mountain Ranch, Discovery Land Company’s private ski and golf resort is approved. If it is it will bring significant construction work to South Routt County to offset the closure of the coal mine in a few years long with bringing demand for more restaurants and other businesses that are likely to increase the appeal of this area for some people.
  • The average home price in 2023 was $490K - 3 of 4 sales in 2024 were above this price point. The highest individual sale in in 2024 being $820K helped increase the overall average sales price significantly with only 4 homes sold in Q1. Meaningful stats are a bit difficult to come by in segments like Hayden and Oak Creek where there are less sales and some of these sales have land that drive the average sales price of the home up. The $820K sale for example was on a 35 acre parcel just outside of downtown oak creek.
  • 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.

Stagecoach

  • Stagecoach will be interesting to watch for the next few years. As you probably know Discovery Land Company who runs the Yellowstone Club is now leading the development of Stagecoach Mountain Ranch (SMR) a private ski and golf resort. It is still in the planning process and we expect to see more details soon so nothing is for sure. At the same time they are already acting like they are committed to doing it including multiple preparations to install a new Doppelmeyr gondola this summer. You could reasonably ask if the properties in the current stagecoach developments will suddenly jump in value. Pardon the careful wording that follows as we explain what we expect to see based on our knowledge of the new resort and what happened outside of the Yellowstone Club.
  • Will there be a sudden boom in Stagecoach property values? Probably not but we do expect to see things do a step or two better if the development of SMR proceeds. Why not? The catch is that you will need to own property in SMR to ski or golf there so most people that own or buy outside the resort are not likely to also buy in the resort given the very high price points that Discovery targets with their developments. For example we don’t believe that many people who buy a typical Stagecoach home for $800-$2M will also buy a lot out there for over $3M or a condo at the price points they are likely to be looking for. Conversely someone who wants to ski or golf at SMR could logically buy a ranch or luxury home in the area and a property within SMR to get access. It will be interesting to see if the SMR development asks for or is given the ability to Short Term Rentals (STR)t. It is possible with those terms being approved as a part of a Planned Unit Development (PUD) but otherwise it is not currently allowed in Stagecoach or the vast majority of areas outside Steamboat City limits. Even if SMR gets approval for STR’s it would be VERY surprising for the existing Stagecoach developments to get it.
  • This probably means that areas in Stagecoach outside the SMR resort won’t suddenly have access to skiing or be short term rentable so we don’t see it as a reason for lots of people to buy outside the new resort and run up prices quickly. We do expect some benefits for the Stagecoach properties outside the resort. This would include things like the improvements to the Morrison Creek Water District and roads SMR will be expected to fund as part of the approval process along with a few new trails, a planned gas station / convieinence store etc.
  • Our point is that given the likely cost of properties in SMR and the lack of access to SMR for most other property owners in the Stagecoach area existing properties in Stagecoach don’t suddenly become like the area around the Steamboat ski area and jump in value. At the same time more people will learn about how nice the Stagecoach area is and some improvements should make the area nicer which may help values outside the resort over time.
  • For this quarter - the breakdown of the individual property types was what caused the average sales price to increase. Because Stagecoach is a smaller market we include townhomes, condos and single family homes in the report. In 2023, 4 properties sold in Q1 3 of which were condos and townhomes all under $440K. In 2024 there was one townhome that sold at $570K and 2 single family homes above $900K.

Steamboat Springs Real Estate Market Updates - 2023 End of Year

The Top 4 Steamboat Market Takeaways

1. After 2 years of the great escape and year of things moving back towards normal we are not seeing post covid gap in demand. Many people bought sooner than they planned, so it is good to see that didn’t leave a gap in demand now that the Covid Great Escape has ended. Even though some people are being called back to work they can still spend more time in Steamboat and a large portion of our buyers are still able to spend much more time in Steamboat than before.

2. The primary limit on sales continues to be inventory. As we publish this report there are 99 residences on the market in all of Routt County. Inventory ranged from 39 to 180 during the last 3 years and was only briefly below 75 units. For context, in the spring of 2019 there were about 360 units on the market and that was tighter than I have ever seen since 2005.

3.Total Sales Volume in $ was down 15% in 2023. Demand is lower than Covid years but still quite a bit higher than supply. If we had 15% more inventory in 2023 we could have matched 2022 sales.

4. In January 2024 we saw a big step up in interest along with a 20% increase in closed sales. We are also seeing very strong new contract activity that closes in February or March. Based on our conversations with clients they are adjusting to the new interest rates etc and are more prepared to secure their home in Steamboat as we start 2024. People are taking a long term view on interest rates and expect the chance to refine in the next couple of years now that inflation has come down strongly.

—Jon Wade - Broker/Owner

Single-Family

  • Single family homes finished 2023 with an average sales price up 7% vs a year ago due to continued demand and limited supply. As of this writing on Jan 24th - there are only 33 Single Family Homes for sale under $4.35M plus 20 luxury single family homes above $4.35M.
  • Average price increased 7% due to fewer sales at lower price points and appreciation as a result of our limited inventory. In 2022, there were 50 total sales under $1M and 99 sales between $1M-$2M. In 2023, there were only 37 sales under $1M and 76 sales between $1M-2M.
  • Most individual single-family homes are worth more now as in the spring of 2022 when total sales peaked 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.
  • It is worth noting that we are seeing a fair amount of price reductions for properties that are priced beyond their value which is different than the value of that home going down. That said overpricing a home for long usually results in it selling for less than it could have if it entered the market at a price that makes sense for its attributes. If you wonder which is the case for a property you see on the market just reach out.
  • 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. Interestingly there were 38 sales between $2-3M BOTH years and 19 sales above $3M in BOTH 2022 (up to $3.75M) and 2023 (up to $4M). To us this is a good example of the resilience of our market and the continuing demand to own a place here. It is good to see this strength given the increase in interest rates and economic uncertainty. Basically, we have very low inventory almost no distressed sellers, and still a significantly stronger market than in 2019 which was a great year just not amazing like the “Great Escape” we described as driving the market during Covid.

Luxury Single-Family

    • The range of sales in this segment in 2022 was $3.8M-$13.3M. In 2023, the sales ranged between $4.35M-$15.65M. However, the shift upwards in price and quality of the home sales at both the lower and higher end of the spectrum contributed to the average sales price increase 27%. The value of any particular home is likely to have increased in the 7-10% range.
    • To illustrate the shift up in the price points of the homes that sold
      - 30% (7 of 23) of the homes that sold in 2022, were below $4.3M, which was the lowest price in this segment in 2023.
      - On the higher end of sales in 2022, there was 1 sale above $7.5M. In 2023, there were 6 sales above $7.5M
      - The average price continues to shift up with which particular properties sold, the increasing quality of new homes, and overall appreciation.
    • As mentioned above as of Jan 24th there are 24 active homes in this segment. While that could sound like a lot, the design, land size and location in the county varies more than at lower price points. There may or may not be a home on the market that is a fit for any particular buyer so it pays for Buyers in the range to see any new options that come on quickly.
    • The increasing quality level/features of new luxury homes along them sitting on lots that are worth $1-$6M are a big influence on the average sales price.
    • We feel fortunate to have represented the sellers in over 20% of the properties in this category. We focus on helping our sellers reach their goals including selling their homes for the most money with more convenience for our clients vs. the traditional approach. To learn more about how we can help you achieve your goals, call The Steamboat Group.

Condos & Townhomes

  • As in other parts of the market we are seeing people take a long-term view on interest rates when they find a good fit for their goals but still realize that they may need to have some flexibility to get a place.
  • Units and $ sales are both down 18% but it is interesting to see that in every quarter except Q2 sales were down 6% or less. In Q2 less supply came on and what did took a little longer to sell, both sellers and buyers took a brief pause for some reason but got right back after it the rest of the year.
  • Here are the sales numbers in units for each quarters broken down, followed by an explanation of what happened:
    2022: Q1 - 71 Q2 - 130 Q3 - 99 Q4 - 66
    2023: Q1 - 72 Q2 - 70   Q3 - 93 Q4 - 62
  • Looking at this change year over year by quarter unit sales are up 1% in Q1, down 46% in Q2, down 6% in Q3, and down 6% Q4. It was a pretty good year for coming out of the Great Covid escape, but even stronger except for one odd quarter.
  • In Q2 of 2022 and 2023 Inventory was a couple of steps better than the quarter before and almost the same inventory level each year, but fewer properties were coming on the market and not selling as fast in Q2 2023. Basically in Q2 2022, inventory came on faster and sold faster so sales were higher vs. in Q2 2023 inventory came on slower and sold a bit slower to sales that quarter dropped more because it was so much stronger in 2022 when more inventory came on and sold quickly.
  • The individual unit sales in this segment kept the average close, but were a very different mix of price points year over year. In 2022, there were 20 sales above $2.8M, in 2023 there were only 8 above $2.8M. Despite the lower number of sales above $2.8M, the averages stayed similar because there were 3 sales in 2023 at $7.25, $7.5M and $9.1M vs. the highest sale in 2022 was $5.6M. There were a lot fewer condos in the $2.8-4.5M range available and both of the very high-end condos sold quickly at or above full price.
  • Looking at the other end of the spectrum there were 25 sales under $400K in 2022 and 9 sales under $400K in 2023. The units that sold in 2023 under $400K were 10% smaller in sqft on average.

Hayden

  • Sales in Hayden are up 11% even in our inventory-constrained market. Hayden continues to benefit from it’s new K-12 school, more fun things to do downtown and it’s relative affordability.
    2022 Q1 - 11 Q2 - 14 Q3 - 14 Q4 - 6
    2023 Q1 - 8 Q2 - 11 Q3 - 12 Q4 - 14
  • The goal of this report is to analyze the entire year, but similar to condos and townhomes we think it valuable to break down the market a bit by quarter. At the end of Q3 units sold was down 23% and sales volume was down 12%. Q4 was strong in Hayden with $3.0M in sales volume in 2022 vs $6.8M in sales volume in 2023.
  • In the first half there were no sales above $700K in 2023 vs. 2 in 2022. The second half of the year that flipped. The entirety of 2022 finished the year with 4 sales over $700K with the highest sale at $980K vs. 7 sales over $700K in 2023 with the highest sale $1.6M.
  • In addition, the entry-level price point has shifted up with 13 sales below $350K vs. 8 in 2023. With the appreciation we have seen in Hayden due to the new school and more restaurants very few homes are worth less than $350K 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.
  • The market in Hayden is performing well and has been mostly limited by inventory so far this year. At some point when interest rates start to come down we expect to see more demand and more people are willing to sell and buy the next home that fits.

Oak Creek/Phippsburg/Yampa

  • There were 2 homes in 2023 that sold over $1.5M. In 2022, there was 1 sale at $1.2M. These sales were a huge component in the average sales price increasing 29%. In this case, it was just a matter of which particular homes were available. In a small volume area a couple of different sales can really skew the percentages without an actual change in the market.
  • Oak Creek is continuing to be the most popular of the 3 towns in this grouping. In 2023 12 of 19 sales were in Oak Creek and in 2022 21 of 34 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.
  • 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.

Stagecoach

  • Similar to Oak Creek/Phippsburg/Yampa a few less sales or lower inventory can bring sales down significantly even though the market has remained strong.
  • It really shows strength in the market when the median price increase is more than the average because it means most things were higher and it was double in this case.
  • The biggest limiter is inventory, particularly in the lower and higher end price points. In 2022, 23 properties sold under $700K vs. in 2023, there were only 9 properties that sold under $700K reflecting the shift up in prices and more homes vs. condos / townhomes in 2022.
  • In 2022, there were less sales over $1M in this segment, but at a higher price point - there were 7 sales between $1M-$2.8. In 2023, there were 10 sales over $1M, but all between $1M and $1.3M.
  • * In Hayden, Stagecoach and Oak Creek/Phippsburg/Yampa there are condo and townhomes sales which isn’t common in the county and does lower the average price.

Steamboat Springs Real Estate Market Updates - 2023 First Half -

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.

Some people ask if properties are now selling at a discount because everyone that bought during Covid are having to leave in a hurry now. The opposite is true. They are either staying full-time or keeping the properties they bought, so we are not seeing an “Escape back to the City” and thought a few more would. What happened is that nearly everyone that bought was achieving their long-term goal of being here, and was ready to stay or at least keep it and come much more often / longer than they could before.

In regards to Interest rates, they are high but interest rates rise and fall over time. Given that, we are towards the end of the Fed’s tightening cycle to fight inflation, and they may go up a bit more. Then they are likely to start going down, which will give people the opportunity to refinance and likely more than once. You need to be able to afford to purchase a property at the current rates and plan on it if rates stay high, but a lot of smart people believe they will see the opportunity to lower their costs over time just like they did 1-3 times in the last two interest rates cycles.

What we are seeing in our conversations with clients is that inventory is the biggest limiter to sales at these inventory levels. Basically, there is low enough inventory that there are still more than enough people to purchase the current inventory with current rates. When interest rates come down we are likely to see two things:

1) Increased demand which will tend to lower inventory even further and increase prices because people can afford more for the same payment.

2) More people choosing to sell because they are now able to upgrade which will increase both inventory and demand since more people will choose to sell to upgrade and more people will be comfortable buying.

—Jon Wade - Broker/Owner

Market Update: 2023 First Half Single-Family Homes

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.
Market Update: 2023 First Half Luxury Homes

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.
  •  
Market Update: 2023 First Half Condos/Townhomes

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
Market Update: 2023 First Half Hayden Real Estate

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.
Market Update: 2023 First Half Stagecoach

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 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

Market Update: 2023 3rd Quarter Single-Family Homes

Single-Family

  • Single family homes values are up 11% vs a year ago due to continued demand and limited supply. The fewer sales at lower price points also contributed to the increase in the average and median price increases. In 2022, there were 41 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 $3.5M. There were 5 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 5% change vs. last year. This is a good example of the resilience of our market and the continuing demand to own a place here. It is good to see this strength given the increase in interest rates and economic uncertainty. Basically, we have very low inventory almost no distressed sellers, and still a significantly stronger market than in 2019 which was a great year just not amazing like the “Great Escape” we described as driving the market during Covid.
  • Most individual single-family homes are worth more now as in the spring of 2022 when total sales peaked 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.
  • It is worth noting that we are seeing a fair amount of price reductions for properties that are priced beyond their value which is different than the value of that home going down. That said overpricing a home for long often results in it selling for less than it could have if it entered the market at a price that makes sense for its attributes. If you wonder which is the case for a property you see on the market just reach out.
Market Update: 2023 3rd Quarter Luxury Homes

Luxury Single-Family

  • With only 13 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. In this case, we believe that appreciation is closer to the median increase of 16% which takes out the higher end sales. These homes were in Storm Mountain Ranch and Anglers. Both were huge homes land values that are a significantly higher portion of the sales price than most. The range of sales in 2022 was $3.65M-$7.5M. In 2023 the sales ranged between $4.45M-$15.65M.
  • 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. 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.
  • The increasing quality level/features of new luxury homes along with lots that are worth $1-$6M are also influencing the average sales price.
  • We feel fortunate to have represented more luxury home sellers in Steamboat Springs in 2023 than any other brokerage. The Steamboat Group listed 4 of the 13 sales in this category or 1/3 more than any of the other companies. We focus on helping our sellers reach their goals including selling their homes for the most money with more convenience for our clients vs. the traditional approach. To see about achieving your goals, call The Steamboat Group.
  •  
Market Update: 2023 3rd Quarter Condos/Townhomes

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 sales numbers in units for the first 3 quarters broken down, followed by an explanation of what happened:
    2022 Q1 - 71 Q2 - 130 Q3 - 99
    2023 Q1 - 72 Q2 - 70   Q3 - 93
  • Unit sales are down 22% so far this year due to very low supply, especially during Q2, but only down 6% in Q3 as we saw a bit more supply and buyers waiting for the right place took the opportunity to realize their goals.
  • As in other parts of the market we are seeing people take a long-term view on interest rates when they find a good fit for their goals but still realize that they need to have some flexibility to get a place.
  • In Q1 of 2022 and 2023, inventory was exceptionally low in the 40-60 unit range which limited sales. In ’22 demand was very strong and it was fairly strong in ’23.
  • 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 2023. Basically in Q2 2022, inventory came on faster and sold faster vs. in Q2 2023 inventory came on slower and sold a bit slower.
  • Values in this range are mostly up with some stable and very few down. In the second half of 2022 a fair number were down but those have mostly come back.
  • The individual unit sales in this segment kept the average close, but were a very different mix of price points year over year. In 2022 there were 16 sales between $2.8-$4.5M, in 2023 there were only 3. Despite the lower number of sales, the averages stayed similar because there were 2 sales in 2023 at $7.5M and $9.1M when the highest sale in 2022 was $5.6M.  There were a lot fewer condos in the $2.8-4.5M range available and both of the very high-end condos sold quickly at or above full price.
  • Looking at the other end of the spectrum there were 32 sales under $500K in 2022 and 25 sales under $500K in 2023 for a 22% decrease in availability.
Market Update: 2023 3rd Quarter Hayden Real Estate

Hayden

  • While the number of homes that sold was down 23% there was strong demand for the ones that came on the market. As we are seeing in most parts of the market sales demand is still stronger than than the inventory available.
  • In our first half report we mentioned that part of the reason sales volume in $ was up only 5% was that there were no sales above $700K in 2023 vs. 2 in 2022. This has changed and we saw 4 sales in Q3 alone ranging from $700K-$1.6M. This was the main contributing factor in the average sales price increasing 14% year-over-year.
  • In addition, the entry-level price point has shifted up with 1 sale below $300K vs. 5 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.
  • The market in Hayden is performing well and has been 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.
  • There were 2 homes in 2023 that sold over $1.5M. In 2022, there was 1 sale at $1.2M. These sales were a huge component in the average sales price increasing 36%.In this case, it was just a matter of which particular homes were available. In a small volume area a couple of different sales can really skew the percentages without an actual change in the market.
  • Oak Creek is continuing to be the most popular of the 3 towns in this grouping. In 2023 10 of 16 sales were in Oak Creek and in 2022 19 of 30 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.
Market Update: 2023 3rd Quarter Stagecoach

Stagecoach

  • Similar to Oak Creek/Phippsburg/Yampa a few less sales or lower inventory can bring sales down significantly even though the market has remained strong.
  • The biggest limiter is inventory, particularly in the lower and higher end price points. In 2023, there were only 7 properties that sold under $700K vs.16 properties that sold under $700K in 2022. The median and the average were balanced out year-over-year by the higher end sale differences. In 2022 there were less sales over $1M in this segment, but at a higher price point - there were 5 sales between $1M-$2.8. In 2023, there were 7 sales over $1M, but all between $1M and $1.3M.
  • * 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 Half -

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.

Some people ask if properties are now selling at a discount because everyone that bought during Covid are having to leave in a hurry now. The opposite is true. They are either staying full-time or keeping the properties they bought, so we are not seeing an “Escape back to the City” and thought a few more would. What happened is that nearly everyone that bought was achieving their long-term goal of being here, and was ready to stay or at least keep it and come much more often / longer than they could before.

In regards to Interest rates, they are high but interest rates rise and fall over time. Given that, we are towards the end of the Fed’s tightening cycle to fight inflation, and they may go up a bit more. Then they are likely to start going down, which will give people the opportunity to refinance and likely more than once. You need to be able to afford to purchase a property at the current rates and plan on it if rates stay high, but a lot of smart people believe they will see the opportunity to lower their costs over time just like they did 1-3 times in the last two interest rates cycles.

What we are seeing in our conversations with clients is that inventory is the biggest limiter to sales at these inventory levels. Basically, there is low enough inventory that there are still more than enough people to purchase the current inventory with current rates. When interest rates come down we are likely to see two things:

1) Increased demand which will tend to lower inventory even further and increase prices because people can afford more for the same payment.

2) More people choosing to sell because they are now able to upgrade which will increase both inventory and demand since more people will choose to sell to upgrade and more people will be comfortable buying.

—Jon Wade - Broker/Owner

Market Update: 2023 First Half Single-Family Homes

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.
Market Update: 2023 First Half Luxury Homes

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.
  •  
Market Update: 2023 First Half Condos/Townhomes

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
Market Update: 2023 First Half Hayden Real Estate

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.
Market Update: 2023 First Half Stagecoach

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.

Overall Top 7 2023 First Quarter Market Takeaways

1. Prices stabilized late in 2022 with some things down 1-5% from the very peak in Q2 22 but still up strongly the last few years. A few properties with issues that only sold because supply was so low, might be down up to 10%. Conversely most homes are worth about the same to up a little. Luxury SF is up 4-10% for newer homes with the most desirable locations and styles. Condos in the Green zone that allows short term rentals are stable for the most part, but townhomes in the green zone are down 5-8%.

2. 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. Further down in this report you will see that average prices in Q1 were up or down depending on the part of the market but most of that is due to how many properties at each price point sold more than a change in values as we explained in each segment. Most other Resorts markets are similar with fairly stable pricing showing the capability and long term outlook of current resort home owners.

3. Buyers are benefiting by some taking more time to see properties that come on, fewer multiple offer situations, that are down to about 25% of new listings, and more negotiation room along with better terms as a result. In some ways it is a tale of 3 markets. Some properties sit for a while if priced incorrectly, some properties generating strong interest as might be ’typical in a traditional market, and some still seeing multiple offers and going under contract for over asking quickly. We are seeing good results for our Buyers negotiation wise on properties that have been on the market for 1-3 months. Buyers that take a thoughtful approach are getting good deals from Sellers who are hoping to move on who haven’t been seeing much activity past the initial showings when they listed. A seller overpricing their property even a little bit in this market give Buyers the opportunity to get a better price than if it had been priced right at the start.

4. Low Inventory is a big challenge - we are seeing even fewer people choosing to sell their properties because they plan to hold them for the long term. There are still virtually no distressed sellers and pre-foreclosure activity continues to be as low as we have seen it. The vast majority of Steamboat property owners 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. In addition, the adjustable rate mortgages with very low teaser rates that caught many buyers in the last recession here haven’t been available since then. We are watching both the numbers and our conversations closely neither reveal any distress in our local market.

5. The spring 2021 and 2022 markets were driven by the great migration, low interest rates and a strong stock market. You wouldn’t know from the headlines but we are now in a more moderate but still good market. 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 so the percentage declines will be significant vs. 2022 yet still comparable other years with good market conditions. The sales comparisons in the second half of 2023 should be more neutral or show a little growth once we are comparing to the more normal market after things downshifted last summer.

6. Barring an unexpected shift caused by a change in international issues 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 to achieve their goals on reasonable terms. In times of change people tend to look for brokers who truly understand the market and will honestly guide them through it. We will continue to work hard to be ready to give you the pros cons and deeper insights about what is happening in our market you need to make the best decision for you.

7. Steamboat continues to be an amazing place to live and call home even it is only part time for now. People continue to value the experience that being here provides. We all know that markets move up and down and that is important to consider but we recommend that you don’t lose sight of the portfolio of experiences you are building while considering your investment portfolio. Here’s to finding the right balance for you and those that matter most to you.

—Jon Wade - Broker/Owner

Market Update: 2022 Q4 Single-Family Homes

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.
Market Update: 2022 Q4 Luxury Homes

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.
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Market Update: 2022 Q4 Townhomes

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.
Market Update: 2022 Q4 Hayden Real Estate

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.
Market Update: 2022 Q4 Phippsburg /Yampa/Oak Creek Homes

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.
Market Update: 2022 Q4 Stagecoach

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 -

Overall Top 7 2022 Market Takeaways



1. Dollar Sales volume in was down 22% in 2022 vs. 2021. This isn't a surprise given all of the headwinds the market has seen in the last 9 months yet people are still considering the environment then moving forward and our market is proving to be resilient. For perspective 2022 was the 3rd best year ever sales wise behind 2021 and 2007. 2022 was up 2% vs. 2020 which was an exceptionally strong year. The sky is not falling we are just returning to more normal market negotiations, contingencies, time on market and conditions after Covid. There are definitely challenges but thoughtful people planning for the long term still value being here more than before Covid and are acting accordingly.

Steamboat Springs Real Estate Market - 2022 Monthly Data

2. The second half of 2022 was down 36% but up 22% from 2019 which was a great year. At The Steamboat Group, we helped clients carefully understand the market in the context of their long term goals, what options are a fit and helped them to make educated, long-term decisions. As a result, of our consultative approach and adding even more value for our sellers, we were the only top 3 brokerage in Steamboat whose sales volume increased. The others were down in the same range as the market.

3. That said we are seeing even fewer people choosing to sell their properties because they plan to hold them for the long term. We still haven’t seen a distressed seller and pre-foreclosure activity is as low as we have seen it. The vast majority of Steamboat property owners 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. In addition the adjustable rate mortgages with very low teaser rates that caught many buyers in the last recession here haven’t been available since then. 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 hope for or believe. Deals are happening in the 0-5% off list price for properly priced properties. Maybe up to 10% off of list price with anything above 5% representing either overpriced properties or properties with issues that Buyers may have chosen to deal with before yet are less likely to now without a lower price.

4. Looking back at sales and average values vs. the previous year 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 and there were multiple offers on most properties. For now average prices for 2022 are up in most segments of our market vs. 2021 but likely a step or two lower than spring of 2022 since multiple offers are still happening but not the majority of the time. We have been in the low 120-130’s of residential inventory in Routt County for 3-4 months now which is 3 months compared to the classic definition of a balanced market at 6 months. Looking back prices were increasing when our market had 15 months of inventory in early 2014. High Inventory above 800-1,000 units is what it took in the Great Recession to see significant price declines. Basically low inventory and little if any distress for sellers is one more sign our market is showing resilience.

5. The spring 2021 and 2022 markets were driven by the great migration, low interest rates and a strong stock market. You wouldn’t know from the headlines (that are almost always much more dramatic 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 after taking a deep look. 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 so the percentage declines will be significant vs. 2022 yet still comparable other years with good market conditions.

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 often a moderate discount on price. 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 an unexpected shift caused by a change in international issues, 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 to achieve their goals on reasonable terms. In times of change people tend to look for brokers who truly understand the market and will honestly guide them through it. We will continue to work hard to be ready to give you the pros, cons, and deeper insights about what is happening in our market you need to make the best decision for you.

—Jon Wade - Broker/Owner

Market Update: 2022 Q4 Single-Family Homes

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.
Market Update: 2022 Q4 Luxury Homes

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.
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Market Update: 2022 Q4 Townhomes

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.
Market Update: 2022 Q4 Condos in Steamboat

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.
Market Update: 2022 Q4 Hayden Real Estate

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.
Market Update: 2022 Q4 Phippsburg /Yampa/Oak Creek Homes

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.
Market Update: 2022 Q4 Stagecoach

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

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

Steamboat Springs November 2022 Real Estate Market Updates

Steamboat Springs Market Update: 2022 November Market Report

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

Steamboat Springs 2022 Real Estate Market Updates

Steamboat Springs Market Update: 2022 Third Quarter Report

It’s not 2021 anymore so where are we?

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

Market Update: 2022 Q3 Single-Family Homes

Single-Family

  • The increase in the average sales price in Q3 2022 was primarily due to shifts in the number of entry level and high end homes sold. Two of these shifts included 25% less sales under $650K (16 in 2021, 12 in 2022) and 83% more sales above $3M (6 in 2021, 11 in 2022).
  • The middle of the market ($1-3M) was pretty steady year over year. In 2022, 48% (79/165) of homes that sold were between $1-$2M vs. in 2021, 44% (89/201) of the homes that sold were between $1-$2M. In 2022, 20% (33/165) of homes that sold were between $2-$3M vs. in 2021, 23% (46/201) of the homes that sold were between $2-$3M. These relatively similar values mostly offset each other.
  • Interestingly, there were 6 manufactured homes in 2022 that sold for under $630K vs 0 in 2021. This moderated the increase in average price by 3% The change without the manufactured homes would have been an increase in 10% year over year.
  • The value of most individual homes has increased 5-10% in the last year.
  • We wondered how prices held up from Q3 2021 vs Q3 2022 and were pleased to see that the 2022 average price of single family homes was up
  • Total Sales Volume - $100M in 2022 (26% decrease from Q3 2021)
  • Average Sales Price - $1.6M (12% increase from Q3 2021). Median Sales Price - $1.6M (24% increase from Q3 2021) which is higher than we saw in the first half.
  • Units Sold - 61 (34% decrease from Q3 2021)
  • 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.
Market Update: 2022 Q3 Luxury Homes

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 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
  • One of the biggest changes year over year is that in 2022, there have been 9 sales between $5-7.5M. In 2021, there were only 4 sales in this price point. This was the primary driver in the increase in the median price point in this segment. The average price is down 2% because in 2022 there were no sales above $7.5M vs. in 2021 there were 3 sales above $10M for homes on land that was worth half what the home was vs.10-25% normally.
  • Because the luxury home market is so influenced by individual sales - we are not breaking down Q3 vs Q3 last year as there would be only a few sales in each year. With how specialized these homes are doesn't really provide any insights into the changes year over year for an isolated quarter.
  •  
Market Update: 2021 Q4 Townhomes

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, 2% (2/97) of the sales were below $450K vs. in 2021, 25% (36/145) 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 33% decrease in the number of units sold, year over year there were actually more units sold over $1M in 2022 vs 2021 (65 in 2022, 57 in 2021). In percentages of the sales this looks like 67% (65/97) in 2022 above $1M vs. 39% (57/145) above $1M in 2021.
  • Any individual townhome likely increased anywhere from 15-25% in value in the last year.
  • We wondered how prices held up from Q3 2021 vs Q3 2022 and were pleased to see that the 2022 average price of townhomes was up
  • Total Sales Volume - $50M in 2022 (1.4% increase from Q3 2021)
  • Average Sales Price - $1.4M (30% increase from Q3 2021), Median Sales Price - $1.1M (24% increase from Q3 2021). Still good performance as the market moderates
  • Units Sold - 36 (21% decrease from Q3 2021)
  • 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.
Market Update: 2022 Q3 Condos in Steamboat

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 14% (29/205) of the sales were under $500k vs. 36% (101/281) of the sales in 2021 were under $500K.
  • In 2022 61% (126/205) of the sales were between $500k-$1M vs. in 2021 47% (133/281) of the sales were between $400k-$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% (50/205) of the sales were above $1M vs in 2021, 17% (47/281) 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.
  • We wondered how prices held up from Q3 2021 vs Q3 2022 and were pleased to see that the 2022 average price of condos was up
  • Total Sales Volume - $57M in 2022 (23% decrease from Q3 2021)
  • Average Sales Price - $906K (17% increase from Q3 2021). Median Sales Price - $725K (16% increase from Q3 2021) showing moderation from the 1st half but still showing good progress in the last year.
  • Units Sold - 63 (34% decrease from Q3 2021)
  • 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.
Market Update: 2022 Q3 Hayden Real Estate

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 31% (12/39) homes sold were under $400K vs. in 2021, 46% (30/365) homes sold were under $400K.
  • Even with a 40% decrease in the number of units sold, year over year there were actually more units sold over $500K in 2022 vs 2021 (15 in 2022, 11 in 2021). In percentages of the sales this looks like 38% (15/39) in 2022 above $1M vs. 17% (11/65) 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.
Market Update: 2022 Q3 Phippsburg /Yampa/Oak Creek Homes

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 2 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, 19/30 sales were in Oak Creek and in 2021, 19/29 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.
Market Update: 2022 Q3 Stagecoach

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 case you wondered. In 2022, 33% (11 of 33) of the sales were townhomes - all of these sales were under $520K. In 2021, 20% (5/25) of the sales were townhomes, all under $430K. 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, 16 of 33 (48%) of homes that sold between $700K-$1M. In 2021, 6 of 25 (24%) 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 2022 Real Estate Market Updates

Steamboat Springs Market Update: 2022 Second Quarter Report

From the Great Escape to a Balanced Market

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

Market Update: 2021 Q4 Single-Family Homes

Single-Family

  • The small increase in the average sales price in Q1 2022 was primarily due to a very low inventory in the $2-$3M price range, which pulled down the average. In 2022, only 17% (17/102) of homes that sold were between $2-$3M vs. in 2021 where 27% (29/108) of the homes that sold were between $2-$3M. There is a supply issue as the demand for $2-3M homes is very strong and they are getting strong prices as a result. 
  • The value of most individual homes has increased 10-20% in the last year.
  • There were 2 manufactured homes that sold under $400K in 2022 vs 0 in 2021. This moderated the increase in average price by 2%. The change without the manufactured homes would have been an increase in 5%. 
  • We wondered how prices held up from Q1 to Q2 and were pleased to see that the Q2 average price of single family homes was up 4.7% from Q1. We wouldn’t call this a trend for the rest of the year but we see it as a nice sign of resilience in our local market.
  • It's interesting to see that the average size of homes sold in 2021 was 2,731sq ft (19% bigger than in 2022). Part of the explanation of the lower average price in 2022 is that the average home sold was significantly smaller than in 2021 (at 2,299sq ft).
  • The number of homes that sold in 2022 under $1M decreased. In 2022, 25% (25 of 102) of homes in this segment sold for under $1M vs. 31% in 2021.  In contrast, there was an increase year-over-year in the sales between $1-2M. In 2022, 54% (55/102) of the sales were between $1-$2M vs. 42% in 2021.
  • The access to gigabit internet in the rural areas of Routt County has increased significantly due to the efforts of both Zirkel Wireless and Luminate Broadband. Luminate is a newer fiber internet company owned by the Yampa Valley Electric Association that is using Federal Rural broadband grants to string fiber in many key rural areas. This has already begun to increase rural home values and we expect this to become more significant over the next couple of years as the rollout is completed.
  • 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.
Market Update: 2021 Q4 Luxury Homes

Luxury Single-Family

  • This segment includes the top 10% of sales. The segment has shifted up as the market has appreciated. In addition, more higher-end homes are being built 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.
  • Looking at the average price here skews what is happening, but we can see the real story by looking at the individual sales. In 2022, the top 4 sales were were at the following price points: $5.5, $5.8, $5.9, $7.5. In 2021, the top 4 sales were at $7.4, $10.0, $11.2, $11.5. Basically the individual homes that sold in 2021 were at much higher price points with higher average lot value. This inflated the price per sq ft in 2021. For example, the land of the Storm Mountain ranch home that sold last year was worth well over $5M vs. most luxury home land values at $750K - $1.5M. 
  • Please also note that the median is up 12% and the lowest price home in this segment was $3.5M in 2022 vs $3M in 2021.
  • The sales of luxury homes have continued to be strong as people adjust their home purchases to match the increased time they are spending here. The lot cost, building costs and the level of quality and design of these homes have increased, resulting in higher prices.
  • Similar to the Single Family market above, the value of most individual homes has increased 10-20% in the last year. However, because of the small size of this segment of the market, a few sales can dramatically effect the numbers.
  •  
Market Update: 2021 Q4 Townhomes

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.
  • Townhomes are a sweet spot for many people. Most townhomes are more spacious than a condo, have a garage, and provide more storage. They are also very convenient with limited upkeep by the owner and many provide most features a home does.
  • The increase in the average sales price reflects the lack of inventory, the increased demand, and the construction of new 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 level price points. In 2022, 3% (2/61) of the sales were below $450K vs. in 2021, 28% (28/99) 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 38% decrease in the number of units sold, year over year there were actually more units sold over $1M in 2022 vs 2021. In 2022, 70% (43/61) were above $1M vs. 37% (37/99) were above $1M in 2021.
  • Finally, there was only 1 sale above $2.4M in 2021 vs. 11 sales above $2.4 in 2022.
  • A year ago we saw several closings for new townhomes at the base of Hilltop Parkway 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.
  • Any individual townhome likely increased anywhere from 20-30% in value in the last year.
Market Update: 2021 Q4 Condos in Steamboat

Condos

  • 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. Give us a call if you would like to discuss some scenarios on how this may play out.
  • 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 do not.
    - In 2022 only 14% (10/142) of the sales were under $400k (with only one sale under $300k) vs. 25% (47/186) of the sales in 2021 were under $400K.
    - In 2022 70% (99/142) of the sales were between $400k-$1M vs. in 2021 59% (110/186) of the sales were between $400k-$1M. As most condos in Steamboat are now worth more than $400K, the proportion of sales in this price range are continuing to increase.
    - In 2022, 20% (29/142) of the sales were above $1M vs in 2021, 18% (33/186) of the sales were above $1M, which is fairly stable. Additionally, in both 2022 and 2021, the average sales price of condos looking only at those 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 $400K.
  • It has been interesting to see 2-bedroom condos in Trailhead Lodge move a step beyond $1M, Eagle Ridge Lodge condos with views move to $1M+, and the same size upgraded Lodge at Steamboat condos move above $850K.
Market Update: 2021 Q4 Hayden Real Estate

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 quickly.
  • Similar to other segments - there are less properties available at lower price points. In 2021, 47% or 16/34 homes sold were under $400K. In 2022, only 29% or 6/21 homes sold were under $400K.
  • 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.
  • The Hayden market saw strong appreciation over the past year due to increasing prices in Steamboat, the completion of the new Hayden K-12 school, and a vibrant community that continues to become stronger. Local amenities such as the Community center, Yampa Valley Brewing Company and Wild Goose Coffee at the Granary have also helped to boost energy as more people socialize downtown. This is very exciting to see. Hayden has become flat out cool with younger buyers and we absolutely love it.
  • Carly Kelly, one of our amazing brokers, lives in Hayden and shared what she is seeing. She has dived into the community with her husband and they are loving raising their daughter there.
    - More and more young adults and families are moving to Hayden to have more space and to join a community of friends
    - The trails in Hayden may be less known but they are beautiful and convenient! Dry Creek Park, Sage Creek Trail, and Deep Ranch (winter only)
    - Town council and planning commission are excited about the growth but are also working to maintain some of the town's history.
    - The Granary is hosting live music on a monthly basis, the brewery is expanding, and Sage & Spirit, a food truck outside the brewery, is a nice food option.
    - There is a winery with a tasting room, a butcher shop coming soon, more new homes being built and people are doing great remodels on the older downtown homes.
    - My friends really like the community center and the classes offered there. It has a pretty packed schedule.
    - Hayden Mercantile is a good local grocery option, their pizzas and stromboli's are a local favorite. You have to get there early if you want one!
Market Update: 2021 Q4 Phippsburg /Yampa/Oak Creek Homes

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, which has been happening ever since we can remember.
  • To be clear, the value of homes in this area have not gone down in the first half. With less sales in a segment, little changes in the price point of the particular homes that sold have large effects on the overall numbers in this segment. In 2021, there were 2 sales above $1M, with the first at $1.2M and the other at $2.95M. In 2022, the highest sale was $910K, driven by more mid-range homes being available and fewer higher-end homes. The median increase at 14% is a more accurate representation of the appreciation in this segment.
  • Oak Creek is continuing to be the most popular of the 3 towns in this grouping. In 2022, 10/16 sales were in Oak Creek and in 2021, 10/17 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.
  • 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.
Market Update: 2021 Q4 Stagecoach

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 tail waters, and access to trails in the National Forest.
  • 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, there were 0 of 13 homes that sold below $700K. In 2021, there were 7 of 14 homes in this segment that sold below $700K.
  • 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.

Steamboat Springs 2022 Real Estate Market Updates

Steamboat Springs Market Update: 2022 First Quarter Report

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

Market Update: 2021 Q4 Single-Family Homes

Single-Family

  • The story here is a lack of inventory which is similar to most of our market. The value of most individual homes has increased 10-20% in the last year. However, because of the price point of the particular homes that came on the market in Q1, the average price increased only slightly.
  • Interestingly enough the small increase in the average sales price in Q1 2022 was primarily due to a very low inventory in the $2-$3M price range which pulled down the average. In 2022, only 12% (5/41) of homes that sold were between $2-$3M vs. in 2021, 25% (13/51) of the homes that sold were between $2-$3M. The is a supply issue as the demand for $2-3M homes is very strong and they are getting strong prices as a result.
  • The following two components in this segment mostly offset each other:
    - Homes in 2022 under $1M decreased. In 2022, 24% (10 of 41) homes in this segment were sold at under $1M. In 2021, 37% (19/51) homes that sold were under $1M.
    - However counter to this, there was an increase year-over-year in the sales between $1-2M. In 2022, 59% (24/41) of the sales were between $1-$2M. In 2021, only 37% (19/51) of the sales were in this range. In 2022, looking at the sales between $1-2M in 2022 75% (18/24) were in the city vs 57% (11/19) of the sales in 2021 were in city limits.
  • Looking at the homes that sold under $1M specifically, in 2022 80% (8/10) were in the county. In 2021, 37% (7/19) of the homes that sold were in the county. This is a 2-fold increase. There is specifically lower inventory of single family homes that came on the market in 2022 and there are less homes in the city that are worth under $1M.
  • The access to gigabit internet in the rural areas of Routt County has increased significantly due to the efforts of both Zirkel Wireless and Luminate Broadband (a fiber internet company owned by YVEA that is using Federal Rural broadband grants to string fiber in many key rural areas. This has already begun to increase rural home values and we expect this to become more significant over the next couple of years as the rollout is completed.
  • We expect very few single family homes to be able to begin Short Term Rentals if they are outside of the Green zone. Let's talk if you have questions.
  • 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.
Market Update: 2021 Q4 Luxury Homes

Luxury Single-Family

  • This segment includes the top 10% of sales and has shifted up as the market has appreciated along with more higher end homes being built 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.
  • Looking at the average price here skews what is happening vs. the real story that we can see by looking at the individual sales. In 2022, the sales were were concentrated at the following price points - $3.5M, $3.7M, $3.8M, $3.9M & $4.6M. In 2021, the sales were at $2.7M, $2.9M, $3.0M, $3.2M, $4.3M & $11.5M
  • The average ‘looks’ like it is decreasing because of the $11.5M sale in 2021 that dramatically affected the average. If this sale were not included the average sale price for 2021 would have decrease by $1.4M to $3.2M, which would make the 2022 Average price increase of 17%. The sales in 2022 had a higher lowest priced sale of $3.5M in 2022 vs $2.7M in 2021 (since there are only a few sales the price point each one is at also makes a big difference).
  • The sales of luxury homes have continued to be strong as people adjust their home purchases to match the increased time they are spending here. The level of quality and design of these homes, lots costs, and building costs, have increased, resulting in higher prices.
  • The same thing is happening with $/sf showing down 23%. The $/sf is not down for any home we can think of but not having the $11.5M sale which was about half land value skews the average down significantly. Without the big sale Q1 2021 had an average $/sf of $595. Using that makes the average $/sf increase 10%.
  •  
Market Update: 2021 Q4 Townhomes

Townhomes

  • The two biggest themes for townhomes are even lower inventory than the rest of the market and the shift upwards in the entry level segment of this market.
  • Townhomes are a sweet spot for many people. As a result of fewer people selling their townhomes now (the units sold decreased) and the demand is strong. The increase in the average sales price reflects the lack of inventory and the increased demand. Most townhomes are more spacious than a condo with more storage, they are very convenient with limited upkeep by the owner, have a garage, and many provide most features a home does.
  • Given the high demand and the cost of homes the price of townhomes are increasing in turn, with many moving above the traditional entry level price points. In 2022, 6% (1/17) sales were below $450K vs. 35% (15/43) were below $450K in 2021. Next quarter under $450K is likely to be less than 2%. People have also been doing a lot of 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.
  • While there were more units sold above $1M in 2021, the proportion of the sales above $1M was slightly higher in 2022. In 2022, 53% (9/17) were above $1M vs. 44% (19/43) were above $1M in 2021.
  • Finally, the highest sale in this segment in 2021 was $2.4M. In 2022 the highest sale in this segment was $4.25M. This one was a stunning mountain contemporary new build along Fish Creek in Barn Village. Removing this sale from 2022 has a $175K effect on the overall average price. While as mentioned above, the lack of inventory in townhomes and the increased demand are the main
  • A year ago we saw several closings for new townhomes at the base of Hilltop Parkway where the price was set at least a year earlier so it was lower than it would have been a year ago making the average appreciation a step higher than if they had closed at what they were worth a year ago. Basically those townhomes already had a year of appreciation beyond the prices they paid when they closed a year ago making the average appreciation higher this year.
  • Similar to single family homes in actuality, an individual townhome likely increased anywhere from 10-20% year-over-year
Market Update: 2021 Q4 Condos in Steamboat

Condos

  • Demand in this part of the market has been particularly strong as more people look to get a place in Steamboat.
  • 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 do not.
    - In 2022 only 5% (3/55) sales were under $350k vs. 24% (18/75) sales in 2021 were under $350k.
    - In 2022 76% (31/55) of the sales were between $350k-$750k vs. in 2021 45/75 44% were. The share in this range nearly doubled as most condos in Steamboat are now worth more than $350K.
    - In 2022 18% (10/55) of the sales were above $1M vs in 2021, 16% (12/75) were above $1M which is fairly stable.
    - The big shift was in the lower price point up into the middle segment as less condos are available under $350K.
  • It has been interesting to see 2 Br Condos in Trailhead Lodge condos move to and beyond $1M, in Eagle Ridge Lodge views units move to $1M, and the same size upgraded Lodge at Steamboat Condos move above $800K.
Market Update: 2021 Q4 Hayden Real Estate

Hayden Homes

  • 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.
  • The Hayden market saw strong appreciation over the past year due to increasing prices in Steamboat, the completion of the new Hayden K-12 school, and a vibrant community that has formed. Local amenities such as the Community center, Yampa Valley Brewing Company and Wild Goose Coffee at the Granary have also helped to boost energy as more people socialize downtown. This is very exciting to see.
  • 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 quickly.
  • Carly Kelly, one of our amazing brokers, lives in Hayden and shared what she is seeing. She has dived into the community with her husband and they are loving raising their daughter there.
    - More and more young adults and families are moving to Hayden to have more space and to join a community of friends
    - The trails in Hayden may be less known but they are beautiful and convenient! Dry Creek Park, Sage Creek Trail, and Deep Ranch (winter only)
    - Town council and planning commission are excited about the growth but are also working also to maintain some of the town's history.
    - The Granary is hosting live music on a monthly basis, the brewery is expanding, and Sage and Spirit, a food truck outside the brewery, is a nice food option
    - There is a winery with a tasting room, a butcher shop coming soon, more new homes being built and people are doing great remodels on the older downtown homes.
    - My friends really like the community center and the classes offered there. It has a pretty packed schedule.
    - Hayden Mercantile is a good local grocery option, their pizzas and stromboli's are a local favorite. You have to get there early if you want one!
Market Update: 2021 Q4 Phippsburg /Yampa/Oak Creek Homes

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 which has been happening ever since we can remember.
  • With less sales in a segment, little changes have large effects on the overall numbers in a given segment. In 2022, there were 6 sales that ranged from $237K - $910K. In 2021 there were 4 sales that ranged from $190 - $365K.
  • Oak Creek is continuing to be the most popular of the 3 towns in this grouping. In 2022 4/6 sales were in Oak Creek and in 2021 3/4 sales were in Oak Creek as well.
  • 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.
Market Update: 2021 Q4 Stagecoach

Stagecoach

  • As Steamboat Springs home prices continue to increase we expect Stagecoach will continue to be an active market and see more $750K+ sales. We love Stagecoach for its access to great recreation at the reservoir, fishing in the public tail waters, and access to trails in the National Forest.
  • The average price growth in this segment of the market was due to an increase in the price breakdown of the homes sold. In 2022 the individual sales were $760K, $789K, $985K, $1.2M & $1.4M. In 2021 the individual sales were $479K, $543K, $665K, $865K, $1.2M.
  • With a small sample size of 5, it is not entirely accurate to compare 5 sales in 2021 to 5 sales in 2022 and say that each individual home in Stagecoach has appreciated 36% as represented by the average, but it is more likely each individual home has increased in the range of 15-25%.
  • 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, and more people continue to move out for more value which has been happening for at least 20 years.

Steamboat Springs 2021 Real Estate Market Updates

Steamboat Springs Market Update: 2022 Year End Report

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

Market Update: 2021 Q4 Single-Family Homes

Single-Family

  • The average sales price of a single family home in the Steamboat School district increased 38% in 2021. This is a dramatic increase that comes from a combination of increased demand, appreciation as a result (which is closer to 20-25% year-over-year for most homes), and very few homes available at lower price points. This is compared to last year, which raises the average price in addition to appreciation. Units are down 12%, not for a lack of interest in this segment, but a lack of inventory—especially in the last quarter of the year.
  • In 2020, the highest sale in this category was $2.45M (see below for luxury homes). In 2021, there were 32 sales above $2.45M. The average sales price for single-family homes has now shifted above $1.5M. That said, lower priced homes are available in some beautiful areas of the county.
  • There were only 30 sales under $700k in 2021 vs. 80 sales under $700k in 2020. This has a strong impact on the average, even if prices hadn’t gone up.
  • Our primary selling season is normally April - October but during the last two years things have remained strong during our typical “off season”.
  • Some people are saying that there is NO inventory, and that there is ‘nothing on the market’ and that is partly true. While we are at the lowest inventory in late January that we have had in recent memory, there are still many sales that are taking place. You just need to watch and be ready to act quickly when the right property comes on.
  • Things are simply staying on the market for less time than we are accustomed to here in Steamboat. We are now more similar to some of the major US markets for ‘days on market’ when homes are priced appropriately. We are helping many people get an advantage in securing the right home, so let us know if you would like to learn about the advantages we can give you. Even though Q4 was down a bit vs. 2020, it is still very strong compared to normal.
  • People are spending more time in their homes. As a result, many people are remodeling or replacing their current home to meet their new needs. We are also seeing more people gravitating to rural living. YVEA / Luminate is bringing fiber Internet to Hayden, Clark, and South Routt before Steamboat. Additionally, Starlink is slowly rolling out reliable and fast satellite internet, making it practical to work and stream in rural areas more than we have ever seen before. This is a big shift.
  • 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.
Market Update: 2021 Q4 Luxury Homes

Luxury Single-Family

  • The Luxury segment includes the top 10% of Single-Family homes (units) by value. Looking at these separately gives us better insight into both the luxury and traditional single-family home markets.
  • This entire segment continues to shift upward. In 2021, all of the sales were above $3.5M. In 2020, just 47% of the sales were above this price point. In 2020 there were 5 sales over $5M, and in 2021 there were 10 sales above this price point.
  • Three of these sales were above $10M and included the finest ski-in ski-out home in Steamboat for $10M, in addition to 2 in Storm Mountain Ranch on lots worth over $5M. These 2 sold for prices of $11.2 & $11.5M.
  • The sales of luxury homes have continued to be strong as people adjust their home purchases to match the increased time they are spending here. The level of quality and design of these homes, lots costs, and building costs, have increased, resulting in higher prices.
  • Inventory continues to be constrained, or sales would be higher as demand in this segment is very strong and prices are adjusting in response.
  •  
Market Update: 2021 Q4 Townhomes

Townhomes

  • Average sales price increased 19% vs. a year ago—taking it above $1M for the first time.
  • In 2020, 55 of the 198 sales (28%) were over $1M vs. 85 of the 203 sales (42%) in 2021. 50 of the 198 sales (25%) were under $500k in 2020. In 2021, there were 53 of the 203 (26%). As an example, Whistler townhomes are now solidly in the $400-500K price point vs. $250-325K a couple of years ago.
  • Another key point is that 15 of the townhomes (28% of the sales) that closed in the first half of 2021 (for $415-516K) are a part of a new development called Fox Springs. Their prices would have been significantly higher, but most went under contract before being built, so they went under contract at lower prices than if they were listed in 2021.
  • Townhomes/Duplexes continue to become a more important part of the market (from $350K to $2.75M) as Single Family home prices continue to go up. We expect more people to go this way even while low supply (compared to demand) is limiting sales in this segment.
Market Update: 2021 Q4 Condos in Steamboat

Condos

  • The units sold in 2021 decreased compared to the number of units sold in 2020 due to limited supply.
  • The average price (+41%) was up significantly but much of this is due to the price points available, in addition to appreciation. For many people, the condo market is their ‘first step into Steamboat’. We have had many conversations with people who are excited to own a condo in-town as their mountain getaway, and ultimately spend more time here. Many are hoping to use it as a launching point to living in Steamboat full-time in the future. Others are selling the condo they bought a few years ago and upsizing to something else now that they know they love life in Steamboat and can spend more time here.
  • Similar to single family homes, in most situations the average value appreciated in the range of 15-25%. The additional increase in average price is a result of many more high-end sales and fewer entry-level sales, which also raises the average.
  • Our entire market had 22 condo sales over $1M in 2020 and 56 sales over $1M in 2021. Looking at One Steamboat Place (OSP) we saw 13 sales that were all over $2M in 2021. It is worth noting that there were few OSP condos available in 2020, while in 2021 there were considerably more as people upgraded within the building or to larger properties.
  • The price points of condos year over year shifted upward. In 2020, 251 of the 395 (64%) sales were under $500k vs. in 2021 where 140 of the 373 (38%) were under $500k.
  • Between $500K-1M, in 2020, there were 122 of the 395 (31%) sales in this price range vs. in 2021 where there were 177 of the 373 (47%) sales. The increase in units in this range also pulled up the average sales price.
Market Update: 2021 Q4 Hayden Real Estate

Hayden Homes

  • The Hayden market saw strong appreciation over the past year due to increasing prices in Steamboat and the completion of the new Hayden K-12 school. Local amenities such as the Yampa Valley Brewing Company and Wild Goose Coffee at the Granary, have also helped to boost the thriving community in Hayden. This is very exciting to see.
  • People are looking to Hayden to benefit from the trends we have seen before around other resort communities. Stories like - Here comes Hayden: One of Colorado’s last down-valley ski towns to pop is having its moment, and rising prices in Steamboat, are bringing Hayden into focus. Homes that come on the market at prices that make sense are selling quickly, which has led to a 53% increase in units sold this past year.
  • In 2020, Hayden had a stronger pause in the market during the initial Covid lockdown than other areas of Routt County. Looking at the breakdown, in 2020, there were 8 sales in Q1, 3 sales in Q2, 18 sales in Q3 and 18 sales in Q4. 2021 saw the momentum continue all year. There were 15 sales in Q1, 20 sales in Q2, 20 sales in Q3 and 17 sales in Q4.
  • The market continues to progress in Hayden. In 2020, 4 of the 47 (9%) sales were above $425k. In 2021, 41 of the 72 (57%) sales that closed were at or above $425,000. The story really is that there were more homes for sale, more people seeing a bright future for Hayden, and homes at higher price points including many newer properties.
Market Update: 2021 Q4 Phippsburg /Yampa/Oak Creek Homes

Phippsburg /Yampa/Oak Creek Homes

  • Of these three areas, Oak Creek has been the most popular this past year—accounting for 24 of the 42 (57%) sales in 2021.
  • There were 15 sales above $500k in 2021 vs. only 3 sales above $500k in 2020*.
  • 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.
  • * To give a fair representation of the market, we did not include the sale Q1 2020 sale of a $5.8M, 755 acre ranch with a 3bd / 2ba 1,847 sqft home in the average or median growth numbers. It is only in total sales. Most of the value was in the land since it backed up to National Forest and including it in the averages would have distorted what is happening for most homes.
Market Update: 2021 Q4 Stagecoach

Stagecoach

  • More people are seeing the year round beauty of Stagecoach, combined with its ample recreation opportunities. The number of sales was down 38% since fewer people chose to sell in 2021. It is clearly not from any lack of demand to be in Stagecoach.
  • The average price growth in this segment of the market was due to increases from the entry level to high end homes. In 2021, there was were only 5 sales below $500k. In 2020 there were 18 sales below $500k. The biggest shift was in the homes between $600-$900K. In 2021, there were 16 homes between this price range vs. only 8 sales in this range in 2020.
  • 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 tail waters, and access to trails in the National Forest.

Steamboat Springs Market Update: 2021 Third Quarter

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

Market Update: 2020 Q3 Single-Family Homes

Single-Family

  • The average sales price of single family homes increased 47%. This is a dramatic increase that comes from a combination of increased demand, appreciation (which is probably closer to 20-25% year-over-year for most homes), and very few homes available at lower price points compared to last year which raises the average price in addition to appreciation.
  • In 2020, the highest sale in this category was $2.2M (see below for luxury homes). In 2021, there were 41 sales above $2.2M. The average sales price for single-family homes has now shifted above $1.5M. There were only 22 sales under $700k in 2021 vs. 58 sales under $700k in 2020 which has a strong impact on the average even if prices hadn’t gone up.
  • People are spending more time in their homes, which makes space even more important. We are also seeing more people gravitating to rural living. YVEA / Luminate is bringing fiber Internet to Hayden, Clark, and South Routt before Steamboat and Starlink is slowly rolling out reliable and fast satellite internet making it practical to work and stream in rural areas like we haven’t seen before.
  • See Luxury Single Family Homes below for how the top 10% of the market by units is doing. We separate these segments so the averages are more meaningful for the bulk of the market. A few luxury sales can distort what is happening in the main part of this market so we report them as separate categories.
Market Update: 2020 Q3 Luxury Homes

Luxury Single-Family

  • The Luxury segment includes the top 10% of Single-Family homes. Looking at these separately gives us better insight into both the luxury and traditional single-family home markets.
  • This entire segment has shifted upward. In 2021, all of the sales were above $3.4M, and in 2020 the baseline to be in the top 10% was $2.3M. In 2020, the highest sale was $7.45M, in 2021 there were 4 sales at or above this price point. These three sales included the finest ski-in/ski-out home in Steamboat for $10M, and two in Storm Mountain Ranch on lots worth over $5M that sold for $11.2 and $11.5M.
  • The sales of luxury homes have continued to be strong as people adjust their home purchases to match the increased time they are spending here. Both the level of quality and design of these homes, as well as building costs, have increased, resulting in higher prices.
  • Inventory continues to be constrained or sales would be higher as demand in this segment is strong and prices are adjusting in response.
  •  
Market Update: 2020 Q3 Townhomes

Townhomes

  • The average sales price of Townhomes increased by 20% vs. a year ago. The reason for the 'relatively' small increase in average sales price compared to other segments in this report, was the mix of the units that sold. In 2021, 57 of the 145 sales (39%) were over $1M vs. 16 of 53 sales (30%) were over $1M in 2020. This was balanced out by significantly more sales under $500k in 2021. There were 42 sales under $500k, including 5 townhomes that sold in Clark and Glen Eden for under $125k with restricted owner use. In 2020, there were only 14 townhomes that sold under $500k.
  • It is worth noting that 15 of the townhomes that closed for $415-516k are a part of a new development called Fox Springs. Their prices would have been significantly higher, but most went under contract before we saw appreciation. They closed at much lower prices than a typical 30-50 day close, due to the fact that it took over a year to build them.
  • Townhomes/Duplexes continue to become a more important part of the market from $200K to $2M as Single Family home prices continue to go up and people appreciate their convenience. We expect more people to go this way even as low supply compared to demand is limiting sales in this segment.
Market Update: 2020 Q3

Condos

  • In the 3rd quarter (similar to single-family homes), the units sold in 2021 decreased compared to the number of units sold in 2020. In 2020 there were 155 Condos that sold vs. 94 in 2021 - a decrease of 39%. Just remember that Q3 of 2020 basically caught up from very few sales in Q2 while we were shut down then took off as more people could be here more than before. That said because of the strong first half of the year - the units sold were still up 14% through the first 9 months.
  • Similar to single-family homes, in most situations, the average price appreciated in the range of 15-25%. As in the paragraph above the remaining increase in average price is a result of many more high-end sales and fewer entry-level sales.
  • While prices increased many more high-end condos like One Steamboat Place sold so the average price went up much more than the price of any particular condo. For instance in 2021 so far we have had 11 sales in One Steamboat Place that were all over $2M vs. 2 in the first 9 months of 2020. It is worth noting that there were few OSP condos available in 2020 while in 2021 there are considerably more as people upgrade within the building or to larger properties. Our entire market had 47 condo sales over $1M in 2021 vs.11 sales of over $1M in 2020
  • The mid-range was where the largest increase in sales occurred. In 2021, there were 135 sales between $500K-1M and in 2020, there were 60 sales. This increase in units available in this range also contributed to the increase in the average sales price.
  • For our entry-level market, there were 10 sales below $250k in 2021 vs. 27 sales below $250k in 2020. In 2021 many properties appreciated out of this price range and locals were more likely to hold onto their homes.
Market Update: 2020 Q3 Hayden

Hayden Homes

  • The Hayden market saw strong appreciation over the past year due to increasing prices in Steamboat and the completion of the new Hayden K-12 school. Local amenities such as Yampa Valley Brewing Company and Wild Goose Coffee at the Granary, have also helped to create a thriving community.
  • In 2020, Hayden had a stronger pause in real estate closings than other areas of Routt County. Looking at the breakdown, in 2020, there were 10 sales in Q1, 4 sales in Q2, and 19 sales in Q3. 2021 saw the momentum continue through Q2. There were 15 sales in Q1 and 20 sales in Q2 and 20 sales in Q3.
  • The market continues to progress in Hayden. 5 of 33 (or 15%) of the sales in 2021 were at or above $400K. In 2021, 35 of the 55 (or 64%) sales that closed were at or above $400K. The story is that demand came back strongly as more people recognized how great of a town Hayden is and there were more homes for sale and at higher price points - including many newer homes.
Market Update: 2020 Q3 Phippsburg /Yampa/Oak Creek Homes

Phippsburg /Yampa/Oak Creek Homes

  • Of these three areas, Oak Creek has been the most popular this past year--accounting for 18 of the 27 sales in 2021.
  • There was only 1 sale above $500k in 2020* vs 10 sales above $500k in 2021.
  • We love seeing the restaurants in Oak Creek continue to increase in quality and quantity. Our group always stops by 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.
  • There were 10 sales above $500k in 2021 vs. only 1 sale above $500k in 2020*.
  • *To give a fair representation of the market, we did not include the sale Q1 2020 sale of a $5.8M 755 acre ranch with a 3bd / 2ba 1,847 sqft home in the average or median numbers. It is only in total sales. Most of the value was in the land since it backed up to National Forest and including it in the averages would have distorted what is happening for most homes.
Market Update: 2020 Q3 Stagecoach

Stagecoach

  • More people are seeing the year round beauty of Stagecoach combined with its ample recreation opportunities. The average price growth in this segment of the market was due to increases from the entry level to high end homes. In 2021, there was only one sale below $400k. In 2020 there were 13 sales below $400k. In 2021 there have been 3 homes sold for over $1M vs. only 1 sale at $1M in 2020.
  • As Steamboat Springs home prices continue to increase, we expect Stagecoach will continue to be an active market and see more $500K+ sales. We love Stagecoach for its access to great recreation on the lake, fishing in the Tailwaters, and access to trails in the National Forest.

Steamboat Springs Market Update: 2021 First Half

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 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.

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

Market Update: 2021 Q2 Single-Family Homes

Single Family

  • The average sales price increased 70%. This is a dramatic increase that comes from a combination of increased demand, appreciation (which is probably closer to 15-25% year-over-year for most homes), and very few homes available in lower price points compared to last year which raises the average in addition to appreciation. Plus, in April and May of 2020 (or 1/3 of the first half), unit sales were down about 50% vs 2019 vs. the same months in 2020 due to the shutdowns. In 2021, April and May had 20 closings in this segment in 2020 vs. 39 in 2021. In 2019 - there were had 43 closings in April and May. This makes the recovery in 2021 more dramatic.
  • In 2020, the highest sale in this category was $1.7M (see below for luxury homes). In 2021, there were 41 more sales above $1.7M.  The average sales price for single-family homes has now shifted above $1.5M. There were 28 sales under $700k in 2020 vs. only 12 sales under $700k in 2021 which has a strong impact on the average.
  • People are spending more time in their homes, which makes space even more important. We’re also seeing people gravitating more to rural living. We are seeing YVEA / Luminate bring fiber Internet to Hayden, Clark, and South Routt before town and Starlink now has reliable and fast satellite internet rolling out nationwide making it practical to work and stream in rural area like we haven’t seen before.
  • Some nice homes, just west of town, in neighborhoods like Steamboat II, Silver Spur, and Heritage Park are still available in the $700K to $1M range and a new K-8 school is being built there. That said we are seeing demand and sales in Silver Spur for $1.5-1.8M homes.
  • See Luxury Single Family Homes below for how the top 10% of the market by units is doing. We separate these segments so the averages are more meaningful for the bulk of the market. A few luxury sales can mask what is happening in the main part of this market so we report them as separate categories.

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.

Market Update: 2021 Q2 Luxury Homes

Luxury Single Family

  • The Luxury segment includes the top 10% of Single-Family homes (units) by value. Looking at these separately gives us better insight into both the luxury and traditional single-family home markets.
  • This entire segment shifted upward. In 2021, all of the sales were above $3M. In 2020, only 33% of the sales were above this price point. In 2020 the highest sale was $7.45M, and in 2021 there were 3 sales above this price point.
  • These three sales included the finest ski-in ski-out home in Steamboat for $10M, and 2 in Storm Mountain Ranch on lots worth over $5M. These 2 sold for prices of $11.2 & $11.5M. If we remove these 3 sales, the average price goes down by $1.7M. As a result,  and the increase in average price is up 71% which is in line with the rest of single-family homes vs.100.5% including these 3 sales.
  • The average $/sq ft of homes sold increased dramatically due to the increase in the average price. In 2020, the average size of the home sold in this segment was 4,207 sqft. In 2021, the average size of the home in this segment was 4,473 sqft. This was only a 6% increase in the size of homes. The average price, in this case, was primarily influenced by the 3-5 times more valuable land from the top 3 homes in this segment.

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.

Market Update: 2021 Q2 Townhomes

Townhomes

  • Average sales price increased 14.2% vs. a year ago. The reason for the 'relatively' small increase in average sales price compared to other segments in this report, was the low to high-end mix of the units that sold. In 2020, 16 of 53 sales (30%) were over $1M vs. 37 of the 99 sales (38%) in 2021. On the opposite end of the spectrum, this was balanced out by significantly more sales under $500k in 2021. In 2020, there were 14 townhomes that sold under $500k. In 2021, there were 33, including 5 townhomes that sold in Clark in Glen Eden with restricted owner use that were all under $125k. If you take out these units in Clark the average sales price would be over $1M.
  • 15 of the townhomes that closed in the first half for $415-516K are a part of a new development called Fox Springs. Their prices could have been significantly higher, but most went under contract before we saw as much appreciation.
  • Townhomes/Duplexes continue to become a more important part of the market from $200K to $2M as Single Family home prices continue to go up. We expect more people to go this way even as low supply compared to demand is limiting sales in this segment.

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

Market Update: 2021 Q2

Condos

  • Both the number of sales (+104%) and the average price (+71%) were up significantly. The number of sales was a result of increased demand from people who can now spend more time in Steamboat. Similar to single family homes, in most situations the average price appreciated in the range of 15-20%. Statistically the increase is a result of many more high-end sales and fewer entry-level sales.
  • Specifically, we saw 9 sales in One Steamboat Place that were all over $2M. Our entire market had 3 sales of $1M in 2020 and 29 sales over $1M in 2021.
  • The mid-range was where the largest increase in sales in units occured. In 2020, there were 19 sales between $500K-1M, in 2021 there were 93 sales. This increase in units in this range also contributed to the increase in the average sales price.
  • For the entry-level market, there were 15 sales below $250k in 2020 and 7 sales below $250k in 2021 as many properties appreciated out of this price range and locals were more likely to hold onto their homes.

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

Market Update: 2021 Q2 Hayden

Hayden Homes

  • The Hayden market saw strong appreciation over the past year due to increasing prices in Steamboat, the new Hayden K-12 school project, having a brewery & coffee shop, and a thriving community as a result.
  • In 2020, the uncertainty of last year gave a much stronger pause in real estate closings than other areas in NW Colorado. Looking at Q2 (April, May, and June) in isolation - there were only 2 sales in these 3 months vs 13 in 2019. 2021 saw the momentum continue through Q2. Looking at 2021, there were 15 sales in Q1 and 19 sales in Q2.
  • Total sales in $ were 304% of 2020. For a better comparison Sales in the first half of 2021 were up 112% compared to the same time frame in 2019 which takes out the pause we saw in 2020.
  • The market continues to progress in Hayden. 50% of the sales in 2021 were at or above the highest sales from 2020. In 2020, the highest sale in Hayden was $405,000. In 2021 17 of the 34 sales that closed were at or above $405,000. The story really is that there were more homes for sale and at higher price points including many newer homes.
Market Update: 2021 Q2 Phippsburg /Yampa/Oak Creek Homes

Phippsburg /Yampa/Oak Creek Homes

  • Oak Creek has been the most popular area of these 3 over the past year and has accounted for 10 of the 17 sales in 2021. The highest sales price in 2020 was $485k*. In 2021, 35% or 6 sales were above this price.
  • We love seeing the quality and number of restaurants in Oak Creek continue to increase and always try to eat there when we are out that way. We would be remiss not to mention the Antlers in Phippsburg which is great for dinner as part of a nice drive or bike ride.
  • *To give a fair representation of the market, we did not include the sale Q1 2020 sale of a $5.8M 755 acre ranch with a 3bd / 2ba 1,847 sqft home in the average or median numbers. It is only in total sales. Most of the value was in the land since it backed up to National Forest and including it in the averages would have distorted what is happening for most homes.
Market Update: 2021 Q2 Stagecoach

Stagecoach

  • Essentially, this entire segment shifted upward. The average price growth in this segment of the market was due to both an increase in the lowest sales price and an increase in the highest sales price. The lowest-priced sale in 2020 was $355k and the highest was $1M. In 2021, the lowest priced sale was $425k and the highest was $1.6M. Additionally, in 2020 only 23% of the sales were above $650k vs 57% of the sales in 2021.
  • As Steamboat Springs home prices continue to increase, we expect Stagecoach will continue to be an active market and see more $600K+ sales. We love Stagecoach for its access to great recreation on the lake, fishing in the Tailwaters, and access to trails in the National Forest.
  • Note: Stagecoach is technically in Oak Creek but for MLS purposes. Stagecoach is a separate area and it performs a bit differently so we report it on its own.

Steamboat Springs Market Update: 2021 First Quarter

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

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.

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.

Market Update: 2020 Q3 Single-Family Homes

Single Family

  • The average sales price increased 47%. While this is a dramatic increase - it is really a combination of increased demand, appreciation (which is probably closer to 15%+ year over year), and homes not being available at lower price points. People are spending more time in their homes so they are looking for more space and they are also gravitating more to rural living.
  • Sales volume was up over 2 times despite low inventory this segment was incredibly active. Basically, while there is very little on the market at one time there is a steady stream of homes coming on the market and they sell quickly. On April 7, there were 42 single-family homes available compared to 55 sales in Q1.
  • This time of year is stronger for 2nd home purchases and the bidding is competitive. To some extent, locals are staying in place, which we expect in the winter, so it will be interesting to see how many choose to enter the market this summer as sellers.
  • In 2020, the highest sale in this category was $1.8M (see below for luxury homes). There were 17 sales above this price that sold in 2021 vs. 2020. The center of the single-family home market has now shifted above $1M and we expect this to remain even if more locals choose to sell this summer. There were 12 sales under $700k in 2020 vs. only 4 sales under $700k in 2021.
Market Update: 2020 Q3 Luxury Homes

Luxury Single Family

  • The Luxury segment includes the top 10% of Single-Family homes (units) by value. Looking at these separately gives us better insight into both the luxury and traditional single-family home markets.
  • This segment is unique because at this price point combined with low volumes a few sales can shift the averages considerably.
  • Values of most homes are up 10-15% in the last year but the average price moved dramatically based on 1 of the 5 homes that sold.
  • In 2019 the highest sale was $7.45M vs $11.5M in 2021. The sale, in 2021, was a home with most of its value in the land just outside of Steamboat on 470 acres. When comparing these 2 sales, the home in 2020 was 14,000 sq ft and the price was more reflective of the size of the home. In 2021, the $11.5M home was 4,100 sq ft where the value of the sale primarily reflected the 470 acres of land the home was on. This land is the biggest factor that drove the $/sq ft up 58%
  • The average $/sq ft of homes sold increased dramatically due to the sale in 2021 being significantly smaller in size vs the sale in 2020, whose square footage was 14,759 sqft. That is the primary driver of the 39% increase in the $/sqft and the 50% average sales price. If we remove those two large sales the $/sf decreased $3 even though the value of every home is up. The number of sales in this segment is so low that when particular homes sell can skew the numbers outside of what is really happening.
Market Update: 2020 Q3 Townhomes

Townhomes

  • The average sales price did not change dramatically in the first quarter of 2020. Looking at the increase in the median, in this case, a probably more representative portrayal of the average townhome increase in price in the past year (at +15%)
  • The reason for the smaller increase to the average sales price vs the median was the relative balance of the type of units that sold. In 2020 10 of 21 sales (48%) were over $1M vs. 19 of the 42 sales (45%) in 2021 were over $1M. Included in this were 8 sales in 2021 that were higher than $1.6M (which was the highest sales price in 2020). However, on the opposite end of the spectrum, this was balanced out by significantly more sales under $500k in 2021. In 2020 there were only 4 townhomes that sold under $500k. In 2021 there were 17, including 4 townhomes that sold in Clark that were all under $125k.
  • 7 of these townhomes closed in the first quarter for $400-500K that is a part of a new development called Fox Springs but went under contract earlier and would have sold for a couple of steps more now.
  • Townhomes/Duplexes continue to become a more important part of the market from $200K to $2M as Single Family home prices continue to go up. We expect more people to go this way even as low supply compared to demand is limiting sales in this segment.
  • It's worth noting that the average price / sf is similar to homes given people are attracted to the higher finish level they can get at the same price point along with a bit lower perceived maintenance.
Market Update: 2020 Q3

Condos

  • Both the number of sales (+53%) and the average price (+59%) were up significantly. The number of sales was a result of increased demand from people who can now spend more time in Steamboat. The average price is a little more complicated in that some of it is appreciated in the range of 15-20% and the rest is that there were many more high-end sales and fewer entry-level sales.
  • This quarter we saw 4 sales in One Steamboat Place that were all over $2M. In 2020 there were no sales over $1.6M - these 4 increased the average sales price alone by $110k (15%). Based on a few conversations, we believe that these owners that sold chose to move to a home and others were happy to find a larger place on the mountain.
  • In Q1 2021 there were 41 sales over $575k. In 2020 there were just 6.
  • For the entry-level market, there were 5 sales below $225k in 2020 and 0 sales below $225k in 2021 as many properties appreciated out of this price range and locals were more likely to hold onto their homes.
  • This was also a year that people saw the value of being more flexible in what they buy to get here with the limited supply. Condos were a great way to get their foot in the door while they look for the place that fits their long-term goals. That said, this is happening across the board from condos to homes.
Market Update: 2020 Q3 Hayden

Hayden Homes

  • The Hayden market saw strong appreciation over the past year due to increasing prices in Steamboat, the new Hayden K-12 school project, having a brewery & coffee shop, and an increasing sense of community.
  • Hayden is becoming an even better place to live and we love seeing more young professionals see it as a great place to live.
  • The market continues to progress in Hayden. 60% of the sales in 2021 were at or above the highest sales from 2020. In 2020, the highest sale in Hayden in Q1 was $405,000. In 2021 9 of the 15 sales that closed were at or above $405,000.
  • Under the $405k, there were 7 homes that sold in 2020 and 6 homes that sold in 2021. The story really is that there were more homes for sale and at higher price points including many newer homes.
  • The average number of bedrooms in the homes that sold were 3.25 in 2020 and 3.4 in 2021. So the homes were just a little bigger, it truly was an increase in the average price point.
Market Update: 2020 Q3 Phippsburg /Yampa/Oak Creek Homes

Phippsburg /Yampa/Oak Creek Homes

  • Oak Creek has been the most popular area of these 3 over the past year and has accounted for 3 of the 4 sales both years. While this allows for accurate comparison in types of homes sold, there were only 4 sales. The highest sales price in 2020 was $465k* vs $365k in 2021 with so few sales this isn’t significant since we know that each individual home is worth more than it was a year ago.
  • Similar to Hayden, we anticipate these three areas to increase in popularity as people look for single-family homes outside of Steamboat Springs.
  • We love seeing the quality and number of restaurants in Oak Creek continue to increase and always try to eat there when we are out that way.
  • To give a fair representation of the market, we did not include the sale Q1 2020 sale of a $5.8M 755 acre ranch with a 3bd / 2ba 1,847 sqft home in the average or median numbers. It is only in total sales. Most of the value was in the land since it backed up to National Forest and including it in the averages would have distorted what is happening for most homes.
Market Update: 2020 Q3 Stagecoach

Stagecoach

  • Essentially the entire segment shifted upward. The average price growth in this segment of the market was due to both an increase in the lowest sales price and an increase in the highest sales price. The lowest sale in 2020 was $375k and the highest was $840k. In 2021, the lowest sale was $479k and the highest was $1.2M
  • The $/sq ft increased (+32%) almost the same amount as the average sales price (+36%). The average sq ft of homes sold in 2020 was 2,932 vs 3,002 in 2021.
  • As Steamboat Springs home prices continue to increase, we expect Stagecoach will continue to be an active market and see more $600K+ sales.
  • Note: Stagecoach is technically in Oak Creek but for MLS purposes Stagecoach is a separate area and it performs a bit differently so we report it on its own.

Steamboat Springs 2020 Real Estate Market Update

COVID has shaped the real estate market, for better or worse, in Steamboat Springs. Let's take a look at what that means for people who want to buy a home in the Boat.

Top 5 Things to Know About the Steamboat Market

‍1. More people can be in Steamboat more of the time and are less attached to where they were living. Many people now have more flexibility in where they work from and have taken the time to re-evaluate their priorities over the last year. Individuals are seeing that they can still work at a high level out of the office, and achieve their larger life goals while spending more time in the mountains.

2. People are spending more time outside, with their families, and in their homes. This is either bringing people to Steamboat, as opposed to other places, or making them re-think their home here. There are not many towns where nearly everything they want to do is 10-30 minutes away. We are also in our homes more often now, which has many people looking for different features or more space.

3. Green acres are the place to be. We saw a big increase in the popularity of rural homes in 2020. Having more space to roam is appealing as people re-think their goals. Our valley is a rare place to find 35-acre parcels near a ski area that doesn’t cost well over $1M. High-speed internet options in rural areas are improving with Luminate laying fiber to serve rural Routt County, and SpaceX’s Starlink internet delivering high speeds in the beta test—so why not combine your career with a rural ski town life?

4. More people’s mountain homes became their primary residences in 2020. This year is looking similar. Many people are just as productive, if not more productive, working remotely and more companies are giving their employees the ability to work remotely. So, why not be in Steamboat with our awesome sense of community, schools, and lifestyle?

5. Land is selling Faster. The market for land is very strong and values are increasing. This is clearly due to the limited inventory of homes, which is pushing more people to build. At the same time, it is increasing the value of existing homes since it is more expensive to replace them. It is often the case that an older home, in need of work, is worth more for the land than the home. There are tradeoffs to consider between building and buying, so let us know if you want to strategize.

What Do You See for the Market Over the Next Few Years/This Winter?

We all know that there will be ups and downs in the economy and real estate market, but there are several factors that we believe make property in Steamboat a good long-term asset.

Covid-19 pulled in plans for many and the first wave Steamboat's real estate market saw was strong, so many wonder if things will pull back next year. That is a possibility, but many people will have waited a year to purchase a property, in order to see how working remotely goes and whether it is practical long-term. Others didn’t find the property in the first wave and are still actively looking. These interested buyers have been calling us these past few months and are driving a very strong winter market, compared to the more relaxed pace that we are used to.

Steamboat is a great place to live or vacation, and more people are able to be flexible in where they live. This gives us comfort in looking forward.

Prices are up but increasing values also bring more properties on the market, as current owners consider their goals to sell once they get a certain amount of equity or their needs change.

Inventory is very low, which does make buying more difficult. It also means that it would take much more inventory and lower demand for prices to pull back moderating concerns about current pricing. Basically, we have about 1/4 of the inventory as we started 2020 with; so inventory can go up quite a bit and demand could moderate a fair amount before we would expect prices to decrease.

In a way, nothing has changed. Steamboat is a great place, with a wonderful community that many people aspire to be a part of. This has been true for a long time and we don’t see that changing.

Sale Units By Year: 2015-2020 Sale Volume By Year: 2015-2020

The Steamboat Group gave over $90,000 in 2020 to honor our commitment to helping keep Steamboat special.

Market Update: 2021 Single-Family Homes

Single Family

  • The average sales price of a home in Steamboat was up 16% in 2020. More notable though was the 55% increase in total sales. The limited supply and increased number of buyers made this segment very active.
  • One of the big stories in this segment is the increased popularity of North Routt as rural areas with great recreation opportunities improved faster than the overall market.
  • In 2019, only 19 of the single-family home sales were in Clark. In 2020, 39 of the single-family sales were in Clark. In 2020, the average sales price of a single-family home in Clark in 2020 was $679k which brought down the average. Now that fiber internet has started to light up the north, we anticipate the popularity and value of North Routt properties to grow.
  • Many individual homes appreciated more than this, given the activity the last few months so let us know if you are curious what your home is worth now.
  • See Luxury Single Family Homes below for how the top 10% of the market by units is doing. We separate them out so the insights are more meaningful.

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Market Update: 2021 Luxury Homes

Luxury Single Family

  • The Luxury segment includes the top 10% of Single-Family homes (units) by value. In 2020 it took a $2.5M home to be in the top 10 % vs. $2.3M.
  • The increase in the median value is more representative of the appreciation in this segment because there were not many homes available over $10m in 2020 vs 2019. If you are curious how much a particular home increased … values and the number of luxury sales increased more in the 2nd half than in the first half so even the median increase is less than what most homes appreciated in 2020.
  • We saw values of individual homes increase 8-20%. In 2019, there were 2 sales above $10M vs. only 1 sale above $10M in 2020. In 2020 multiple ranches in this price range sold but few with houses on them were available compared to in 2019. Additionally, in 2019, there were only 12 sales between $3-5M vs 21 sales between $3-5M in 2020.
  • Total Sales volume in this segment is up 39% as more people are able to spend more time here. They are looking for more space and planning to be here more than before and need office space so they often choose to spend more as a result. We also saw quite a few more spec homes in the $3-5M range that were started before this situation (as they take 12-18 months to build) but sold more quickly as a result.

We put our clients' interests first, have very high standards for our group. Fortunately, people noticed and we were 93-305% more productive per broker than any other Top 5 Steamboat Firm in 2020.

Market Update: 2021 Townhomes

Townhomes

  • Total sales of townhomes were up 50%, and the average price was up 16% as townhomes continued to become a more popular option for people.
  • The biggest shift here is that sales have moved up into the luxury side of the market. This is driven in part by increasing Single Family home prices and a few new entry-level townhomes are being built. We expect Townhomes/Duplexes to continue to perform well and be a more important part of the market even as low supply compared to demand is limiting sales in this segment.
  • The sales of over $1M were instrumental in driving up the average sales price. In 2019, 27 of 154 sales (or 18%) were over $1M vs. 55 of the 198 sales (or 28%) in 2020 were over $1M.
  • It's worth noting that the average price is the same as homes given people are attracted to the higher finish level they can get at the same price point, often a better location, along with a bit lower perceived maintenance.

We are proud to have helped 160 people/families in 2020 - the most of any team or agent. Thank you for making us #1!

Market Update: 2021 Condos

Condos

  • This is one of the more consistent segments year-over-year. The shift upwards in sales over $2M and strong demand along with low supply at every level were driving factors of the increased average sales price. In 2019 there were only 10 sales over $1M vs 22 sales above $1M.
  • Looking at the other side as well we saw a significant decrease in the number of condos worth under $250k on the market. In 2019 - 18% (28/334) were under $250k vs in 2020, 8% (9/395).
  • Total sales of condos were up 41% reflecting both local demand and the ability of more people able to spend enough time here to justify a second home.

We are grateful to be chosen by so many of you to help with your needs. We continue to serve more people than any other Team or Agent.

Market Update: Hayden Homes

Hayden Homes

  • The uncertainty with COVID-19 had a large impact on the Hayden market. There were almost 50% fewer sales for the first 6 months of the year vs 2019.
  • Looking at Q2 (April, May, and June) in isolation - there were only 4 sales in these 3 months vs 15 in 2019. However, looking at Q3 and Q4 there were 36 sales in 2020 vs only 27 in 2019. So, while the overall units did not change vs. 2019, the timing of these sales did. We anticipate the momentum to continue and sales in Hayden to increase in 2021 vs both 2020 and 2019
  • As the price of single-family homes continues to increase in Steamboat we expect the average sales price to continue to increase in areas like Hayden and we expect this market to come back in a similar fashion as the Steamboat market perhaps just a bit slower as local businesses and workers recover.
  • What we love to see is that Hayden will complete a great new school building, attracting more restaurants, and the community there is strong. Hayden has a bright future in our opinion.
Market Update: Phippsburg /Yampa/Oak Creek

Phippsburg /Yampa/Oak Creek

  • The first half saw a 19% higher average sales price primarily due to a decrease in sales below $250k. In 2019, 48% (20/42) of the sales were under $250k, meanwhile in 2020 26% (10/38) of the sales were below 250k. This is driven by the appreciation these areas are seeing as they follow what is happening in Steamboat resulting in few homes are available under $250K.
  • To give a fair representation of the prices, we did not include the sale of a $5.8M 755 acre ranch with a 3bd/2ba 1,847 sqft home in the average or median numbers. It is only in total sales and units sold. Most of the value was in the land since it backed up to National Forest and including it in the averages would have distorted what is happening for most homes.
Market Update: Stagecoach

Stagecoach

  • The appeal of rural homes with recreation close by has increased faster than the overall market which is particularly true in Stagecoach.
  • The average price was driven by the price point shift above along with a $5M ranch that also made up 16% of total sales volume. Even without it sales still almost doubled.
  • As Steamboat Springs home prices continue to increase, we expect Stagecoach will continue to be an active market and see more $500K+ sales.
  • Note: Stagecoach has an Oak Creek address but it is separate in the MLS and is a distinct market with more of a recreation component so we report it on its own.

Steamboat Springs 2019 Real Estate Market Update

Our goal at The Steamboat Group is to help our clients make informed decisions about real estate in Steamboat. You are smart and we can help you be smart about Steamboat Real Estate.

Just scroll down for a quick and easy guide to what is happening in the Steamboat Springs Real Estate market - Notable trends, changes, and shifts over time. It is important to note that just because the average price or price per square foot is up a certain percentage that doesn't mean there is that much appreciation for any particular property.

The market is very granular. Averages can be influenced by the availability at different price points, hotter at the higher or lower price points, more new buildings, etc. Give any of us a call to discuss and we can give you a great sense of what is going on in your part of the market.

‍When Results Matter, call The Steamboat Group. Ask for our stats to see why.

The Steamboat Market

Happy New Decade! This is Jon Wade with The Steamboat Group and here are our Top 7 Steamboat Real Estate Market Takeaways from 2019

  • Real demand from locals, people who want to be in Steamboat more, and location-neutral people moving here along with nearly 50% cash purchases give us comfort in the health of the Steamboat market.
  • Steamboat is a special community, local buyers made up 50% of sales in 2019 compared to 13% in other towns like Breckenridge. That makes a big difference!
  • Looking to Land Title Company's data, 2019 will likely end up slightly down in total sales but most values outside of land are up (this analysis does not take land, commercial or fractional sales into account at this time). We expect total sales will end the year at about $850M. That is just over half of the $1.6B in 2007 and nearly every sale is logical price-wise giving us comfort there is reason in the current market.
  • Limited supply is still a factor in many market segments — specifically, homes under $1.2M, townhomes under $500k, and condos under $350K
  • Average home prices were up 12%, townhome prices +10%, and condos +8% primarily due to real demand and limited supply.
  • Higher-end condo sales over $800K, which nearly disappeared in 2018, are back with more re-sales coming on the market and people’s confidence in the market continues to improve
  • Sales in areas outside of town are up strongly with Stagecoach up 14% and Hayden 12%. In Phippsburg, Yampa, and Oak Creek total sales in dollars were up 32% but the average price was down due to more entry-level homes selling in those areas than in 2018.
Market Update: 2019 Single-Family Homes

Single Family

  • This has been one of the best performing segments in the market in 2019 with the average sales price up almost 12%
  • Continuing for the 2nd year, one of the biggest themes is a lack of inventory in this segment. While we don't report on Days on Market, homes that have been coming on in this segment that are priced well are selling quickly. However, buyers are savvy so if a home is overpriced it will need to adjust to the market at some point to get traction.
  • While the average sales price of single-family homes has increased, the average sales price for the top 10% of homes, or the Luxury Market, has raised the overall price range included in this Single Family homes segment (the remaining 90%). There were only 2 sales in this segment above $2M in 2018 vs 8 sales above $2.0M in 2019. Conversely, there were 31 sales under $400k in 2018 vs only 18 sales under $400k in 2019.
  • This does pull up the average sales price & dollars per square foot more than the average home has appreciated. For example, the average $835k home in 2018 is not worth $934k in 2019. The difference is a higher % of people are buying pricier homes and there are fewer homes at lower prices available than in 2017.
  • See Luxury Single Family Homes below for how the top 10% of the market by units is doing. We separate them so the averages are more meaningful.
Market Update: 2019 Luxury Homes

Luxury Single Family

  • This segment represents the top 10% of Single-Family units with the highest sales prices. We feel that looking at these separately gives you better insight into both the luxury and the traditional single-family home segment.
  • The big story that drove the 21.6% increase was the shift up in the price points of the homes that sold. In 2018 there were 17 sales from $2M-$3M and 6 sales from $3M-$5M. In 2019 there were only 10 sales from $2M-$3M and 12 sales from $3M-$5M.
  • The shift in prices up to $3M-$5M was not the lone cause of the increase in the average sales price. This segment is unique because a few sales can shift the numbers considerably. In 2018 the highest was $6.1M and $8.4M. Comparing this to 2019, the highest 2 sales were at $10.2 and $11.6M
  • We have now gotten to the point that 75% of luxury homes sold are under 7,500 sq ft. This is after a few years of transition from larger homes being the majority. In general, the market is showing a strong preference for smaller homes except on truly exceptional sites. This matches the conversations we are having with buyers who are looking for homes with refined floor plans that are easier to maintain and feel right for their needs. It mirrors the national trend as reported in the WSJ that people are looking for a higher level of quality in a great location with well-thought-out floorplans they can actually use.
Market Update: 2019 Townhomes

Townhomes

  • The 10% increase in total $ sales volume was mostly unit driven by fewer unit sales in the lower end and more in the higher end of the spectrum.
  • As Single Family home prices continue to go up and people value convenience more, we expect Townhomes / Duplexes to continue to be an active part of the market at a wide range of price points.
  • One of the biggest aspects to note is the shift where sales in townhomes took place year over year. Breaking this down into 3 segments paints an insightful picture of what occurred YOY best. In 2018 there were 66 sales under $500k, whereas in 2019 there were only 38 sales under $500k. From $500k-$1M there were 79 sales in 2018 vs 89 sales in 2019. Above $1M there were 20 sales in 2018 vs. 27 sales in 2019.
Market Update: 2019

Condos

  • While the goal of this report is to understand how 2019 changed from 2018, to gain the most insights from this segment, it is important to go back a year further and include 2017. From 2017 - 2018 there was a 6.6% decrease in the average sales price YOY. This was primarily due to a decrease in high-end condo inventory and thus sales. In 2017, there were 24 condos that sold above $800k vs. 12 condos that sold above $800k in 2018. In 2019 more resale condos came on the market so there were 23 condos that sold above $800k.
  • This brought back the average sales price to $441k in this segment, (2017 average sales price was $437k & 2018 average sales price $408k) which shows how much the luxury condo market has an influence on the average sales price.
  • Looking at the opposite end of the spectrum in this segment, condos under $400k are almost identical YOY. In 2019, 180 condos under $400K sold vs. 184 in 2018 - only 2% difference year over year.
Market Update: 2019 Hayden

Hayden Homes

  • The Hayden market continued to be very strong in 2019. Increasing prices in Steamboat, the new Hayden K-12 school project, having a brewery & coffee shop, and an increasing sense of community is making Hayden an even better place to live.
  • New construction became a larger segment of the market in 2019 as overall demand has increased.
  • Sales volume is down 17% due to the decrease in the overall # of units sold. As of this writing, there are only 13 Hayden homes listed in January 2020. The lack of supply (similar to single-family homes in Steamboat) is a driving factor in the decrease in sales here.
  • As the price of single-family homes continues to increase in Steamboat we expect this trend to continue in outlying areas like Hayden.
  • The higher end of the market also increased dramatically. In 2018, 6% of the sales were above $400k vs 17% of the sales above $400k in 2019.
Market Update: 2019 Phippsburg /Yampa/Oak Creek Homes

Phippsburg /Yampa/Oak Creek Homes

  • Similar to Hayden, people interested in the Yampa Valley are exploring areas outside of Steamboat and finding beautiful areas they love. South Routt County is gorgeous and great people live there, so we are not surprised.
  • This is the only segment in 2019 that saw a decrease in the average sales price. The primary reason for this was that even with the 32% increase in the homes sold there were more entry-level homes that sold in 2019. In 2018, there were only 3 sales below $175k vs 9 sales below $175k in 2019. This decreased the average sales price even when values were up overall.
  • Thus the average home in this segment is worth more than in 2018 as more people begin to explore areas outside of Steamboat. For a more accurate evaluation of your property or one you might be interested in, please contact us for a personalized market analysis.
Market Update: 2019 Stagecoach

Stagecoach

  • Similar to Phippsburg/Yampa/Oak Creek, there were a few higher price point sales that drove this section of the market.
  • Sales above $600k were the main driver in the average sales price increase. 2018 had only 1 sale above $1M and only 2 sales (including the $1M) above $600k. 2019 had 2 sales above $1M and 7 sales (including the 2 at $1M) above $600k.
  • Note: Stagecoach is technically in Oak Creek for MLS purposes; however, Stagecoach is a separate area that is not reflected in the Oak Creek data above.

Steamboat Springs 2018 Real Estate Market Update

Our goal at The Steamboat Group is to help our clients make informed decisions about real estate in Steamboat. You are Smart, we help you be smart about Steamboat Real Estate. Just scroll down for a quick and easy guide to what is happening in the Steamboat Springs Real Estate market - Notable trends, changes, and shifts over time.

It is important to note that just because the average price or price per square foot is up a certain percentage that doesn't mean there is that much appreciation for any particular property. The market is very granular. Averages can be influenced by the availability at different price points, hotter at the higher or lower price points, more new buildings, etc. The first 4 categories cover the Steamboat Springs School district including North Routt.

We point out many of the key things that are driving the market but the only way to know where your property or one that you are interested in is to ask someone who follows the market closely. Zillow is more often than not 10-40% off here in the Yampa Valley. Zillow is much closer to entertainment than fact in our experience.

When Results Matter call The Steamboat Group. Ask for our stats to see why.

Market Update: 2018 Single-Family Homes

Single Family

  • This has been one of the best performing segments in the market in 2018 with almost all stats hitting the double digits in this segment.
  • One of the biggest themes is a lack of inventory in this segment. While we don't report on Days on Market, homes that have been coming on in this segment that are priced well are selling quickly.
  • While the average sales price of single-family homes has increased, the average sales price for the top 10% of homes, or the Luxury Market, has raised the overall price range included in this Single Family homes segment (the remaining 90%). For example, the highest sale included in this segment was $1.53M in 2017 and is now $2.0M in 2018.
  • This does pull up the average sales price and dollars per square foot more than the average home has appreciated. For example, the average $1.5M home in 2017 is not worth $2.0M in 2018. The difference is a higher % of people are buying pricier homes and there are fewer homes at lower prices available than in 2017.
  • See Luxury Single Family Homes below for how the top 10% of the market by units is doing. We separate them so the averages are more meaningful.
Market Update: 2018 Luxury Homes

Luxury Single Family

  • This segment represents the top 10% of Single-Family units with the highest sales prices. We feel that looking at these separately gives you better insight into both the luxury and the traditional single-family home segment.
  • In 2018, 20 of the 26 sales were over $2.5M vs. only 6 of 27 sales in 2017. The mix of which homes sold in this range shifted from below $2.5M to above $2.5M. This was the main driver that caused such a large % increase in the average sales price. In this case, the average quality of the homes sold increased more than the value of each home.
  • This segment is unique because a few sales can shift the numbers considerably. In 2017 there was one sale at $9M. Without this sale, the increase in average sales price would be even higher. We have also seen a shift from high-end condo sales to high-end single-family sales in 2018, as few condos in that range are available.
  • The highest sale included was $9.0M in 2017 vs. $8.4M in 2018
  • In 2017 there was only 1 sale over $3.5M, in 2018 there were 8 over $3.5M
Market Update: 2018 Townhomes

Townhomes

  • The 20% increase in total sales volume was mostly unit driven by more sales in both the lower and higher end of the spectrum. The average price is up slightly, but the primary factor that resulted in the increased sales volume was the increase in units sold.
  • As Single Family home prices continue to go up, we expect Townhomes/Duplexes to continue to be an active part of the market at a large range of price points.
  • In 2018 there was a 38% increase in the number of sales above $900k and there were also 22% more sales under $500k. Compared to a nominal 6% increase in the amount of sales between $500-900k. This is what led to the relatively stable average sales price which grew 4% even with the high increase in volume.
Market Update: 2018 Condos

Condos

  • It's interesting that the average sales price is down, but the median is up slightly. That said, most condos are worth 5-15% more than last year. The decrease in average is due to significantly fewer luxury condo sales in 2018 due to a lower supply of those. There were fewer sales in 2018 over $800k (12 in 2018 vs 24 in 2017) but, between $600-800k there were 32% more sales in 2018. This kept the median relatively similar YOY, while affecting the average more dramatically.
  • This is due to 2 main factors: 1) More people have turned to single-family homes in the higher-end market, as seen above in the single-family stats. 2) There are also fewer options currently available on the market in the higher price range for condos.
  • Condos under $400k are down 18% YOY. In 2017, 218 condos under $400K sold vs. 179 in 2018 due to lower inventory in this segment and appreciation taking many popular condos above $400K.
  • In 2017 there were 8 sales over $1.5M, in 2018 there were 3. There were significantly fewer condo sales in places like One Steamboat Place and Edgemont which reduced average sales prices.
Market Update: Hayden Homes

Hayden Homes

  • The Hayden market was very strong in 2018. Increasing prices in Steamboat, the new K-12 school project, Having a brewery and coffee shop, and an increasing sense of community are making Hayden an even better place to live.
  • New construction became a larger segment of the market in 2018 as overall demand has increased.
  • Sales volume is up 54%, the highest growth segment in 2018. As the price of single-family homes continues to increase in Steamboat we expect this trend to continue in outlying areas like Hayden.
  • The higher end of the market also increased dramatically. The highest sale in 2017 was $322k. In 2018 there were 16 sales above $322k! As a result, the average price increased 16% while the median only went up 6%.
Market Update: Phippsburg /Yampa/Oak Creek

Phippsburg /Yampa/Oak Creek

  • Similar to Hayden, people interested in the Yampa Valley are exploring areas outside of Steamboat. South Routt County is gorgeous so we are not surprised.
  • Unlike Hayden, which saw a shift in the upper end of the market as a whole, the Phippsburg/Yampa/Oak Creek increase in average sales price, volume and median was driven by just a few sales. In 2017 the highest sale was at $390k. In 2018, there were 5 sales above $390k (at $1.1M, $650K, $635K, $420K & $400K) that drove the average price up so dramatically. Without these 5 sales, the average sales price would have increased 8% vs the recorded 38.8%.
Market Update: Stagecoach

Stagecoach

  • Similar to Phippsburg/Yampa/Oak Creek there were a few sales that drove this section of the market. The change here is that there were fewer high-end sales in 2018. In 2017, we saw 6 sales above $600K vs. only 2 in 2018.
  • As Steamboat Springs home prices continue to increase, we expect Stagecoach will continue to be an active market and see more $600K+ sales.
  • Price per square foot is up 7% while the size of the homes is roughly 8.1% smaller.
  • Note: Stagecoach is technically in Oak Creek but for MLS purposes. Stagecoach is a separate area that is not reflected in the Oak Creek data above.
  • We wonder if Hayden is attracting more of this segment of the market given the positive changes and growth there. That is hard to prove, it could be normal variations given sales are only $17M or hopes the Stagecoach Ski area will be re-opened going dormant for now. A few sales make a big difference and inventory could be a factor.

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