Steamboat Springs Real Estate
As 2018 is underway in Steamboat Springs, Colorado, there are many shifts taking place in the Steamboat Springs real estate market. Of note are the following 3 things that seem to be influencing the dynamics of the 2018 Steamboat Springs real estate market.
First, there is a very limited supply within the Steamboat Springs real estate market, which always affects people’s buying and selling habits, and is basically an issue of supply and demand. Secondly, entry-level “starter” homes are topping out at $600,000, showing a steady increase over the past few years in the first time homeowners pricing bracket. Lastly, lending practices are sound, proving that financing is in a stable place and that people are purchasing homes that are within their price ranges.
Steamboat Springs Real Estate-Demand And Supply
Inventory of homes is usually a good indicator of the strength of a local real estate market, and in Steamboat Springs, Colorado, it is clear that our real estate market is strong. According to Cam Boyd, broker/co-owner with Steamboat Sotheby’s International Realty, “the inventory of properties for sale goes through an annual cycle with relatively low supply in January, building toward a peak in late June to early July when potential sellers understand that their property will look its most appealing. Still, even for mid-winter, inventory is unusually low right now.”
Steamboat Sotheby’s does extensive market research and their findings indicate that as of January, existing listings represented an inventory that would only last for approximately 7 months. When compared to past years, that inventory number is down significantly. In 2017, the inventory supply was 15 months and in 2016, that inventory number was closer to 2 years.
While it is clear that not many people are listing their homes for sale now, but awaiting the Spring/Summer market, low housing inventory creates a circular dilemma. Sellers who want to sell may stay put because there is no place for them to move to. At the same time, buyers cannot purchase homes that are not on the market, and sellers cannot sell their homes if there is nowhere for them to go, so it becomes a vicious cycle.
The good news about the Steamboat Springs real estate market and low inventory is that it is a problem that can be fixed over time and one that is already underway in Steamboat Springs. The following things can help pull a market out of low inventory: lower interest rates, consumer confidence (in the local economy and the local market as a desirable place to live), low unemployment rates, and an increase in new construction (many of new construction projects are already underway in Steamboat Springs).
Steamboat Springs Real Estate- Rising Price Of Starter Homes
On January 20th, Steamboat Today, reported that the Multiple Listing Service (MLS) only had 1 single-family home with the boundaries of Steamboat Springs School District that was listed for less than $500,000 and only 17 homes listed for less than $1 million.
Melissa Gibson of Land Title Guarantee Company reported in her year-end report “that the total real estate transactions in Routt County for 2017 were $809,183,833, the most reported since the record year of 2007 when the local market topped $1.5 billion in sales.”
These stats indicate that Routt County, and especially Steamboat Springs, is a very sought-after place to live. With that type of demand to live here driving the local real estate market, it only makes sense that the average cost of starter homes would increase with each passing year.
For example, Gibson also noted that the average residential property price in Old Town Steamboat in 2017 was listed as $687,614, or roughly $415 per square foot. Just one year before, in 2016, the average residential property price in Old Town Steamboat was listed as $662,000 or $376 per square foot.
Boyd says that: “the price range that’s most lacking in the single-family home inventory is the middle range. The middle range is now $700,000 to $1.2 million and the lower end of the single-family market is kind of $400,000 to $600,000.”
If you are looking to get down below that $400,000 to $600,000 range, you need to look at real estate outside of Steamboat Springs, which again, is a testament to the desire people have to live within Steamboat Springs.
Steamboat Springs Real Estate-Lending Market Stability
The last major influencer of the Steamboat Springs real estate market and an indicator of peoples buying and selling habits is the strength of the lending market.
In 2010, lending practices were not as stringent as they are today, and many financial institutions and lenders were offering questionable loans and selling them as investments. With these poor lending practices, little or no money down was required to secure a loan for a home and it left many people out in the cold attempting to pay off loans that were beyond their means.
Steamboat Today quoted Jon Wade, principle of The Steamboat Group, as saying that: “lending practices are on sound footing and you can buy what you’re qualified for. The lending market is in a good place.”
With financial stability, and new construction projects in Steamboat Springs, it is clear that the Steamboat Springs real estate market is starting off 2018 with a bang, and will surely ramp up in the coming months as the snow melts.
Steamboat Springs Real Estate-Ask An Expert
If you have questions about these 3 factors (inventory, rising price of starter homes, and lending stability) influencing the Steamboat Springs real estate market, it is best to ask local Realtor and real estate expert, Sunny Brstina of Steamboat Sotheby’s International Realty, or visit her website at: steamboathousesforsale.com and engage in a live chat.
Sunny has over 12 years of experience in all facets of Steamboat Springs real estate and has been a real estate investor here herself. Sunny has represented both buyers and sellers and can comment on all of these factors and how they come into play within the Steamboat Springs real estate market.
If you are concerned about the low inventory, Sunny is the realtor for you. With a Masters Degree in Information Systems, Sunny knows how to use marketing tools and technology to market your home to the widest audience in order to receive the best price offering while also searching the inventory to find your ideal property.
If the rising cost of starter homes is your concern, Sunny can offer insight on neighborhoods and areas to pursue that you may not have thought of, as well as suggested properties to meet your demands.
As a full service Realtor who always goes above and beyond in every aspect of the real estate transaction process, Sunny Brstina can recommend lenders to help get you started with a loan that allows you to live within your means.
So before you buy, sell, or invest in the Steamboat Springs real estate market, make sure you start at the top with a seasoned Realtor such as Sunny Brstina.