It has been an interesting year so far in the Steamboat real estate market. Dollar volume is down 7.4% in the first half of 2014 but things feel much better than they did a year ago. I think it reflects that the things that need to happen for us to recover are in process or have happened but we haven't entirely replaced the sales that it took to clear out the distressed inventory last year including some big distressed properties that closed in January of 2013. People see things recovering and are acting accordingly to realize their goals.
As you can see above volume has been nearly flat for the last four and a half years now as the market worked through, short sales foreclosures and excess inventory. The short sales and foreclosures are nearly gone and are now longer driving our market. Inventory is still high overall but has come down in several key segments and those segments are seeing appreciation.
- Overall Results are mixed as we recover (see above)
- Popular price points are disappearing. The market for homes under $500K has effectively moved back out into the county as we recover and supply is very low in town.
- We are seeing good appreciation in the parts of the market that inventory is tight: Downtown, Homes in the City Limits under $750K and $1-1.4M, some condos under $300K
- Sales of homes $1-2M grew 57% with most in the $1-1.4M range
- Townhomes and Condos from $1-2M have been strong
- The normal upgrade cycle has returned for locals and 2nd homeowners alike.
- We should see some new ski in ski out development announced in the next year as supply tightens.
Click here to see The Steamboat Report - you can read the summary and a section or two that interest you in just a few minutes. It is worth knowing the factors that are driving the values of your property or the one that you would like to own.
I am optimistic for the future and hope for a healthy (but not too fast) recovery that will allow us to operate in a positive market. We tend to follow Denver by a couple of years and that is about now. Let me know if you have any questions or know anyone I can help navigate our market. Please feel free to share this with friends if you think it is useful.