Colorado Group Realty Insider - March 2022

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With warmer weather approaching, we will hopefully soon get a thaw in the
persistently low inventory. Last month, there were only 51 residential offerings
across Routt County; as of this writing, we’ve ticked up slightly to 69. Indeed, there
appears to be a slow gradual increase of new listings throughout the county as the
year progresses, with 13 new listings in December 2021; 16 new listings in January
2022; and 21 new listings in February 2022. That said, we’re still a long way off from
what is considered a balanced supply of inventory of around six months. Currently,
we only have a meager two months of supply.

Because of the low inventory, it doesn’t take very long for homes to get snapped
up. The median days from list date to contract date is only 15 days; however, it has
been hovering between 5-10 days for the last year so it is up a tad. The low inventory
has also likely contributed to skyrocketing home prices: the average single-family
home price in Steamboat Springs is now $2.05M, up 35% from this time last year
when it was $1.5M. Condos and townhomes have also seen a considerable boost,
averaging nearly $857K, up 30% in the last year.

From an interest rate perspective, reports from Freddie Mac suggest that March
entered like a lamb and will be leaving like a lion. In the first two weeks of March,
there was a decline in interest rates, but they’re starting to go back up. A 30-year
fixed-rate mortgage averaged 3.76% at the beginning of March and is up to 3.85%
as of this writing. Freddie Mac’s Chief Economist says, “Over the long-term we expect
rates to continue to rise as inflation broadens and shortages increasingly impact
many segments of the economy. Uncertainty about the war in Ukraine is also driving
rate volatility.”

Although it is a seller’s market, that doesn’t mean people will purchase a home at
any price. Top Realtors® consistently get higher prices for sellers. In fact, CGR clients
received an average of 100% of their list price last year (probably just one reason we
were voted #1 in Best of the Boat again). However, “highest offer” does not always mean
“best offer”. Your broker will help you select the offer with the highest likelihood of
closing. Finally, while it may be tempting to list your home “For Sale by Owner”, FSBO
homes typically sell for 10-20% less than broker-assisted transactions.

Whether you’re considering buying, upgrading, or selling a home, one of our
experienced agents is here to help you with all of your questions.