Colorado Group Realty Insider - January 2022
year strong with 122 land/residential transactions (of which 91 were in Steamboat)
in December. Routt County closed out the year with over $1.48B in sales volume,
up 31% from 2020. The year has started at a similar place to where last year’s
ended, with only 57 residential offerings throughout the county (not including
fractionals). The average price appreciation for homes in Steamboat Springs in
2021 was 27.3%, while county-wide, homes appreciated at an average of 23.7%.
What a year to be an owner of real estate!
If the end of the year is a time for reflection, the beginning of the year is a time for
prediction. According to a consumer survey from Redfin, nearly half of home buyers
surveyed nationwide would feel pressure to buy if interest rates exceed 3.5%. As
of this writing, rates at some of our local banks have hit 3.375% for a 30-year fixed
mortgage. The National Association of Realtors® predicts that rates will average
about 3.7% by the end of 2022. It is worth noting that even at 3.7%, that will still be
some of the most historically low interest rates our country has ever seen.
For our clients who are considering selling, many leading residential economists
are predicting national home price appreciations of another 3-6% in 2022. That
number could very well be higher in our resort community where demand
promises to remain high and inventory will stay near all-time lows. Nonetheless,
sellers should be mindful of the old adage “strike while the iron is hot.” If interest
rates continue to rise, that will limit buying power.
And in the world of commercial real estate, the National Association of Realtors® is
predicting a healthy year. Even though we’re still slogging through the pandemic,
the office market is expected to pick up as the Omicron COVID variant works
through the country and more workers return to the office. Retail brick-andmortar activity is also expected to be strong; 2021 saw a record number of new businesses formed that will need frontage for their burgeoning operations.
As with every year, we promise that CGR will continue to deliver unprecedented service
to our clients in 2022. Our growth significantly outpaced the market, once again giving
credence to why you voted us #1 Best of the Boat real estate firm.
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