Wednesday, February 21, 2007

Steamboat Real Estate Market update

The Real Estate Market in Steamboat Springs continued to be strong in January with an 110% increase in sales year over year on volume that was 20% lower. This shows the strong demand we are experiencing here in Steamboat and the tightening supply we are experiencing as availible land, condos, townhomes and homes get harder to find. The average price of units sold county wide more than doubled since last January. This continues a trend that really took hold in June that has seen many new and more expensive properties coming on the market along with appreciation on a comparable unit basis. Just to be clear that doesn't mean the price of the average property has doubled it is just that the mix of higher end properties have increased (and sales of development properties) along with apreciation across the market.

Given the weakness in several markets like Florida and Las Vegas you might ask if Steamboat is heading for the same situation. I study the market here pretty closely and feel comfortable that this is not the case here in Steamboat. I won't go into the details here supply continues to tighten while demand has been increasing due to several strong factors like the sale of the ski area to Intrawest, improvements and the redevelopment of the base area, the relative value Steamboat represents, the tight supply of lots along with several other strong Steamboat specific drivers and nationwide demographics.

If you would like more details on how the market is developing here in Steamboat feel free to give me a call. I will be happy to send you data and talk in depth about what is driving the market and what I expect to see moving forward. We are in the midst of some strong drivers that will improve the overall experience in Steamboat and prices are likely to follow. You can reach me at 970-819-6930.

Back to the Steamboat Springs blog main page for more.

2 comments:

Anonymous said...

What's the market doing now?

Steamboat Springs said...

Thanks for asking. I'll be brief here but you can call or email me for more detailed insights anytime. We have returned to a very healthy market from the crazy busy market we had in 2007. Our dollar volume went from $1B in 2006 to $1.5B in 2007 on 1/3 lower unit volume. We continue to see price appreciation with most new closings and have returned to normal seasonality where last year the market volume was up nearly every month. The low end market below $500k is down 20-40% depending on the month primarily due to lack of supply since much less is available below that price point. the high end market over $1.5m is generally about double last year. Overall unit volume is lower just like last year due to tight supply.

There are fewer large development parcels sales primarily because most were purchased in the last two years and are in planning. There is very limited development land available.