Colorado Group Realty Insider - March 2021
The Routt County housing market is still on fire, despite the lean inventory. Routt
County total sales volume for January and February was $321M, up 85% from
last year. Through February, there have been 464 transactions, more than double
each of the previous two years. The last nine months have brought an entirely
new meaning to the term “seller’s market”.
With the lack of inventory, most would think that the frenetic sales pace would
slow down. In Routt County, there are only 97 residential properties for sale, down
57% from this time last year. Over 300 new listings have hit the market through
February, an all-time high, but properties are going under contract at the same
pace, meaning that inventory is not building. As of March 14th, there were only
73 active residential listings in the town of Steamboat Springs, and only 17 of
those were under $1M.
Luxury properties above $2M are selling at a faster pace now more than ever.
In the last three years, inventory above $2M in Steamboat has shrunk from 44
months of inventory to just four months of inventory. Luxury sellers are listing
with confidence knowing that they won’t have to wait several years for their
property to sell as they have in the past.
More than ever, buyers are scooping up land, opting to build their own homes
instead of competing in the low-inventory market. In each of the last eight
months, there have been at least 33 land sales. In the 10 years prior to that, there
was only one month with more than 33 land sales.
Not surprisingly, low inventory also means that sellers often receive near or above
asking price. In Steamboat, the average close price is 98.6% of asking. In other hot
markets, the average sale price is above the asking price. For example, in Denver,
sellers average 101.2% of their list price.
To stand out, successful buyers often are pre-approved for a loan or offering to
purchase in cash. Winning buyers also exhibit more vision, understanding that
their dream home may be hiding under worn carpet and dated paint. Buyers
recognize that in low inventory markets, they will likely compete against several
other offers and are getting creative to ensure their bid stands out.
It can be challenging for both buyers and sellers to navigate a hot market. Our 80
licensed professionals have the experience and resources to guide you through
the real estate process. You can reach out to your preferred agent; they are happy
to give you the time and service to succeed in today’s market conditions.
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