Colorado Group Realty Insider - June 2020
As the world slowly comes out of COVID-19 hibernation, homebuyers have also
reawakened resulting in increased real estate activity. The April and May freeze,
where showings were restricted and visitors were not allowed, has thawed but
the stay-at-home orders resulted in drastically lower sales volume and transaction
numbers. May total sales volume in Routt County was only $35M compared to
$69M last year. The mere 48 transactions in the month were 57% less than May
’19. Total sales volume in Routt County is now down 18% year over year. While not
surprising, the numbers are stark.
Brighter days are ahead as activity is ramping up to pre-pandemic levels. Showing
activity in Steamboat is only down 1% compared to this time last year. Single family
homes under $1M are frequently going under contract near or above asking prices.
The rolling 12 month median sale price of a single-family home in Steamboat
Springs is now $889K, up from $867K at this time last year. Across most categories
and neighborhoods, property values have stayed steady or increased due to low
inventory. For the last six months, inventory has hovered near all time lows with
only around 300 residential properties for sale in Steamboat. Desperate buyers are
hopeful that it’s better “late than never” for the spring spike in inventory, when the
number of properties for sale traditionally increases by around 30%.
Buyers across the country are being aided by historically low 30-year fixed mortgage
rates that currently average 3.2%. Nationally, mortgage applications in the last
week are up an astounding 18% compared to the same week last year. In April, only
38 properties went under contract in Routt County. The number grew to 80 in May,
but still well below typical norms. Estimates for June are that around 100 properties
will go under contract (about the same numbers as last June).
While the business case for investment properties that rely on nightly rental
revenue will be challenged until travel is back to normal, there is an influx of new
buyers looking for what Routt County offers. The pandemic has been hard on those
quarantining in crowded urban centers and many of these people are now seeking
the Steamboat lifestyle or a second home escape. This new demand, combined
with persistent low inventory, will likely buoy property values for the foreseeable
Please reach out if you have any questions about the state of the market; we are
more than happy to assist.
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