Colorado Group Realty Insider - September 2021

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After 15 months of real estate market frenzy, we may finally be entering a slight
cool down phase. Or perhaps it's better worded to say that we may be coming to
the end of the frenzy but the market is still very hot. Through August, total sales
volume in Routt County is up 88% from this time last year.

The end of the summer is typically when activity seasonally slows but the pandemic
has created an atypical environment where the normal predictable seasonality isn't
so predictable. The number of active listings across Routt County has stayed the
same for the last three months at around 150 (not including fractionals); normally,
inventory drops each month throughout the summer. There was still a big increase
in closings in August (108 compared to 65 in July) but with inventory holding steady,
it means buyers who had experienced nearly two years of dwindling inventory now
have a few more choices.

Routt County residential properties have appreciated 44% from this time last year,
an unheard-of run-up. Historically low mortgage rates are still below 3% and buyers
are taking advantage of this purchasing power. Many leading economists believe
that home prices will continue to appreciate but at a more sustainable rate over
the next year, with estimates around 3-5%. However, those same economists are
predicting a rise in interest rates which would likely tamper buyer demand.
For those contemplating building a home from the ground-up or putting an
addition on their home, prices of many building materials continue to increase, up
by about 19% year-over-year. The costliest building materials are steel, asphalt, PVC
piping, and copper piping and tubing. Steel mill products are up a whopping 81%
year-over-year. On the bright side, lumber prices have fallen after a meteoric rise
this summer, now back to historic norms.

In spite of these challenges, there are several exciting projects underway that may
help with inventory. The former Steamboat Pilot & Today building on Curve Plaza has
a project called "Basecamp" that is proposing 75 residential units, including studio,
one-bedroom and three-bedroom units. Also, the Yampa Valley Housing Authority
is putting together its steering committee to start planning the development of
locals housing on the recently purchased 536-acre Brown Ranch, formerly called
Steamboat 700.

The Metzler Team offers expertise in every regional market segment for both
buyers and sellers. Give us a call to see how we can help you with your situation