Colorado Group Realty Insider - November 2021

Click to enlarge image
Bidding wars. All cash offers. Homes selling far over asking price. The Yampa
Valley housing market is still on fire. Overall sales volume through October is
up more than 50% from this time last year while the number of active listings
in Routt County remains lower than this time last year. Homes continue to
be snapped up, often within days of listing. The county-wide median days on
the market is a meager eight days. This is not surprising since there is only
1.3 months of inventory available. Pending listings county-wide are actually
up from September (111 in October vs. 108 in September) and the number
of closings in October remained strong at 114. September’s closings were
cash heavy, with 52% of buyers closing without a loan.

Single family homes in Steamboat Springs city limits remain the hottest
category in the market as the average price has crested $2M for the first time
in history. Routt County homes outside city limits however actually saw a
slight dip in their average price.

A recent nationwide study found that the average mortgage holder now has
$173K in equity in their home. This is excellent news because, as real estate
data firm CoreLogic notes, “large increases in home prices have given most
borrowers a large home equity cushion, making foreclosure far less likely.”
Some interesting news from the real estate industry is that Zillow has shut
down its instant-buying (iBuying) program, Zillow Offers. Although iBuying
has not come to Routt County due to the unique nature of our community, it
illustrates some important lessons for sellers in all markets. The idea behind
iBuying is that a company (Zillow Offers, Opendoor, Offerpad, etc.) uses
artificial intelligence to make an “instant offer” on a home. Zillow used its
proprietary “Zestimate” software to value homes. After losing $304M on the
venture, Zillow has decided to sell 2,000 homes and cut 25% of its workforce,
because they purchased homes for prices higher than it could sell them. The
lesson here is how difficult it is to use artificial intelligence to make up for realworld,
human experience in pricing a home. So if you’re considering using
an iBuying company or placing a large emphasis on “Zestimates” remember
this: Zillow’s experience proves that a machine cannot replace seasoned real
estate professionals trained in the art and science of pricing a home.

We analyze the market closely to ensure that we provide our clients with expert advice. Give us a call to see how we can help you with your situation today.