Real estate represents a significant portion of most people’s wealth in the United States. Real estate market anywhere, rises and falls based on the following 4 factors, according to Investopedia. The homes for sale in Steamboat Springs CO, are no exception to these external factors.
The Factors That Affect Homes For Sale
The first thing that affects homes are for sale in Steamboat Springs CO is demographics. According to Investopedia, “Demographics are the data that describes the composition of a population, such as age, race, gender, income, migration patterns and population growth.” Often overlooked, demographics are significant because they represent statistics that can have long-term effects on how real estate is priced and what types of properties are in demand.
Interest Rates And Homes For Sale in Steamboat Springs CO
The second factor that affects what homes are for sale in Steamboat Springs CO is interest rates. Interest rates determine a person’s or family’s ability to get a loan to purchase a home for sale and the lower interest rates go, the lower the cost it is to obtain a mortgage to purchase a home, which in turn creates a higher demand for real estate, thus driving up the price of homes for sale in Steamboat Springs CO.
Homes For Sale in Steamboat Springs CO and The Economy
The economy is the third factor that affects real estate and the homes for sale in Steamboat Springs. In general, the health of the economy is measured by employment data, manufacturing activity, and the price of goods. When the economy is healthy and thriving, so too is real estate, and when the economy is sluggish or in a downturn, real estate tends to be slow as well.
Government Legislation and Its Effects On Real Estate
Lastly, the government and its legislation are another way that homes for sale, and real estate in general, are affected. When the government offers tax credits, subsidies, and deductions that can temporarily boost the demand for real estate, local markets can see an uptick in homes for sale.
When you consider these 4 factors above, the logical deduction is that homes for sale in Steamboat Springs CO will continue to see an uptick in a healthy real estate market in the foreseeable future. For example, according to the Steamboat Springs Board of Realtors Market Update for August 2017, the median sales price for townhomes and condominiums sold was $511,500. This represents a percent change from the previous year (2016) of +468.3%.
If you look at the demographics of Steamboat Springs, each year there are more visitors to our small mountain town and more families growing in size. Additionally, with the recent sale of the Steamboat Springs resort, the local economy here is thriving. New businesses and restaurants are consistently opening here. Also, new residences and housing developments are constantly being built. Established businesses are continuing to expand, which draws outside investors to our market.All of this is improving our local economy in Steamboat Springs, which in turn creates a huge demand for homes. With all of these factors working together, the homes for sale in Steamboat Springs will continue to thrive.
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Sunny Brstina | Steamboat Sotheby’s International Realty
Real Estate Broker | 970.846.1574| sunny(dotted)steamboat(at)gmail(dotted)com
Website:www.SteamboatHousesForSale.com