Colorado Group Realty Insider - December 2021
especially in the Yampa Valley. In spite of the shortage of listings, 2021 sales in
Routt County shattered records. To put it into perspective, in 2019 through
November there was a healthy $642M in sales volume in the County. Last year,
through November, that figure ballooned to $952M. This year, to date, there has
been nearly $1.33 billion in sales volume! While the number of transactions is
up from last year (1,563 compared to 1,321), price appreciation is really what is
driving the massive sales volume growth.
Single family homes in Routt County have gone up 25%, while values of condos
and townhomes increased an eye-popping 38%. In Steamboat Springs, the
numbers are even more stark with single family homes up 40%, while condos and
townhomes have increased in value by 42%
Looking back on the past year, nobody could have foreseen such a market at the
beginning of 2021. This past spring, Fannie Mae and Freddy Mac predicted that
rising interest rates, low supply, and high demand could cause a slowdown in
market activity. Shortly thereafter, pundits began predicting the real estate bubble
to burst, except there has been no bubble. The arrows just kept trending upwards.
Surging sales have been partly due to Routt County having been affected by both
the Great Reshuffling (migration from metro areas into rural ones) as well as the
Great Resignation (workers leaving jobs and not coming back).
In 2022, the outlook is likewise difficult to predict. Similar to last year, we’re still
battling a nationwide pandemic. The Federal Reserve is indicating they will raise
the federal funds rate (how much banks pay one another in interest to borrow
funds on an overnight basis from the federal reserve) which could indirectly
affect mortgage rates. Labor shortages are likely to persist. Housing demand will
probably remain high, due to the incredible nature (pun intended) of the area in
which we live. The big question is, will there be supply?
Despite all of the unpredictability of the coming year, one thing remains certain for
2022: Colorado Group Realty will continue to deliver unprecedented service to our
clients. For the second year in a row, you have voted CGR the top real estate company
of Routt County in the annual Best of the Boat competition. For that, we thank you!
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