Colorado Group Realty Insider - September 2020

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How’s The Market?

During the summer of 2009, the median price of a Steamboat Springs singlefamily
home was $1.4M. Fast forward 11 years and the price has crested $1.4M
yet again. A historic summer in Steamboat has led to rapidly escalating prices
and nearly barren inventory. The feverish pace of the last few months has cut
the supply in half from a year ago and there are now only 214 active residential
properties for sale in Steamboat Springs. The surge has caused inventory to
drop to less than three months of supply, compared to seven months at this
time last year.
In August there were 210 closed transactions in Routt County totaling $143M,
crushing the 124 transactions for $77M from last August. It was the largest
month, by far, in the last 12 years. Amazingly, September may be even bigger.
The extraordinary last few months have pushed the year-to-date total volume
to $524M, up 12.5% from this time last year. It was hard to fathom that the
market would get so hot when you think back to just a few months ago when
everyone was in lockdown due to COVID-19. The way people view where they
live has changed drastically leading to record real estate transactions across
the country. The urban migration away from cities and smaller living spaces
means there is an influx of new buyers canvassing Routt County, looking for a
place to start their new chapter or to have a second home getaway.
Locals who voted last year to annex the land for the 450-housing unit West
Steamboat Neighborhoods, may not get the inventory relief they desired after
all. The developers have hit some roadblocks in their attempt to purchase
the land from the owners of Steamboat 700. If the project eventually moves
forward, it seems construction won’t start any time soon.
In Steamboat, like most of Colorado, all metrics point to an extreme seller’s
market. In August, the percent of closed price to asking price spiked to a 10-
year high of 98.4%. At the same time, the median days from list date to contract
acceptance fell to a decade low of just 12 days. The median price-per-squarefoot
of a residential property is now $370/sq. ft. Just three years ago it was
$300/sq. ft., proving that owning in Steamboat has been a great investment.
The market has gone from a near shut down this spring to hyper speed in the
last few months. It’s more important now than ever to have an expert on your
side if you’re thinking of buying or selling.