Colorado Group Realty Insider - August 2020

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How’s The Market?

The unprecedented surge in real estate activity since the quarantineinduced
lows of April and May has been nothing short of stunning! July in
Routt County was the largest month in over a decade with an astounding
$112M in closed sales volume on 154 transactions. Compared to July
2019, when there was a healthy $63M in sales volume, the numbers are
stark. August is on pace to be another huge month as activity is rushing
along at breakneck speed. Even with the drastic slowdown in activity
when the pandemic hit, Routt County is now nearly on pace with last
year at $376M in closed real estate through July.
COVID-19 has created a massive shift in how people think about their
homes and where they live. Demand to live in places like Steamboat
Springs and the surrounding rural areas has increased drastically the
last few months as homebuyers flock to the haven of smaller cities. The
lifestyle of the mountains has become even more desirable. While second
homeownership is on the rise; buyers are looking for a sanctuary and
more physical space. Estimates are that over 50% of U.S. jobs can now be
done through remote work. Many people who previously couldn’t move
to Steamboat because of their jobs, have become untethered from their
offices and are following their dreams.
The spike in demand is good news for sellers, as the steady rise in home
values has accelerated. The median price of a residential property in
Steamboat is now $575K, up 13% since last July. The median price of
a single-family home is approaching $1M, currently at $979K. Active
inventory has fallen to all-time lows with only 250 properties for sale in
Steamboat Springs, compared to 450 this time last year. Buyers looking
to get settled in Routt County prior to the school year are feeling the
pinch to act fast, as the median days on market from listing to contract
has plummeted to just 21 days. Demand doesn’t show any signs of
easing as people are moving forward with accelerated life plans and the
value of home continues to be reinforced.