2019 End of the Year Market Update: Q1-Q4  
The Steamboat Report
Our goal at The Steamboat Group is to help our clients make informed decisions about real estate in Steamboat. You are smart and we can help you be smart about Steamboat Real Estate.

Just scroll down for a quick and easy guide to what is happening in the Steamboat Springs Real Estate market - Notable trends, changes, and shifts over time.  It is important to note that just because the average price or price per square foot is up a certain percentage that doesn't mean there is that much appreciation for any particular property.

The market is very granular. Averages can be influenced by the availability at different price points, hotter at the higher or lower price points, more new building, etc. Give any of us a call to discuss and we can give you a great sense of what is going on in your part of the market.

When Results Matter call The Steamboat Group. Ask for our stats to see why.

The Steamboat Market

Happy New Decade! This is Jon Wade with The Steamboat Group and here are our Top 7 Steamboat Real Estate Market Takeaways from 2019

  • Real demand from locals, people who want to be in Steamboat more, and location-neutral people moving here along with nearly 50% cash purchases gives us comfort in the health of the Steamboat market.
  • Steamboat is a special community, local buyers made up 50% of sales in 2019 compared to 13% in other towns like Breckenridge. That makes a big difference!
  • Looking to Land Title Company's data, 2019 will likely end up slightly down in total sales but most values outside of land are up (this analysis does not take land, commercial or fractional sales into account at this time). We expect total sales will end the year at about $850M. That is just over half of the $1.6B in 2007 and nearly every sale is logical price-wise giving us comfort there is reason in the current market.
  • Limited supply is still a factor in many market segments - specifically homes under $1.2M, townhomes under $500k, and condos under $350K
  • Average home prices were up 12%, town home prices +10%, and condos +8% primarily due to real demand and limited supply.
  • Higher-end condo sales over $800K, which nearly disappeared in 2018, are back with more re-sales coming on the market and people’s confidence in the market continues to improve
  • Sales in areas outside of town are up strongly with Stagecoach up 14% and Hayden 12%. In Phippsburg, Yampa, and Oak Creek total sales in dollars were up 32% but the average price was down due to more entry-level homes selling in those areas than in 2018.
The Steamboat Group -  6x Best of the Boat Real Estate Agent & 2x Best of the Boat Real Estate Firm.

Single Family

  • This has been one of the best performing segments in the market in 2019 with the average sales price up almost 12%
  • Continuing for the 2nd year, one of the biggest themes is a lack of inventory in this segment. While we don't report on Days on Market, homes that have been coming on in this segment that are priced well are selling quickly. However, buyers are savvy so if a home is overpriced it will need to adjust to the market at some point to get traction.
  • While the average sales price of single family homes has increased, the average sales price for the top 10% of homes, or the Luxury Market, has raised the overall price range included in this Single Family homes segment (the remaining 90%). There were only 2 sales in this segment above $2M in 2018 vs 8 sales above $2.0M in 2019. Conversely, there were 31 sales under $400k in 2018 vs only 18 sales under $400k in 2019.
  • This does pull up the average sales price & dollars per square foot more than the average home has appreciated. For example, the average $835k home in 2018 is not worth $934k in 2019. The difference is a higher % of people are buying pricier homes and there are fewer homes at lower prices available than in 2017.
  • See Luxury Single Family Homes below for how the top 10% of the market by units is doing. We separate them so the averages are more meaningful.
The Steamboat Group gave over $57,000 back to our valley in 2019.

Luxury Single Family

  • This segment represents the top 10% of Single Family units with the highest sales prices. We feel that looking at these separately gives you better insight into both the luxury and the traditional single family home segment.
  • The big story that drove the 21.6% increase was the shift up in the price points of the homes that sold. In 2018 there were 17 sales from $2M-$3M and 6 sales from $3M-$5M. In 2019 there were only 10 sales from $2M-$3M and 12 sales from $3M-$5M.
  • The shift in prices up to $3M-$5M was not the lone cause of the increase in the average sales price. This segment is unique because a few sales can shift the numbers considerably. In 2018 the highest were $6.1M and $8.4M. Comparing this to 2019, the highest 2 sales were at $10.2 and $11.6M
  • We have now gotten to the point that 75% of luxury homes sold are under 7,500 sq ft. This is after a few years of transition from larger homes being the majority. In general the market is showing a strong preference for smaller homes except on truly exceptional sites. This matches the conversations we are having with buyers who are looking for homes with refined floor plans that are easier to maintain and feel right for their needs. It mirrors the national trend as reported in the WSJ that people are looking for a higher level of quality in a great location with well thought out floorplans they can actually use.
We put our clients interests first, have very high standards for our team, and truly work as a team. Fortunately, people noticed and we were 38-200% more productive per broker than any other Top 5 Steamboat Firm in 2019.

Townhomes

  • The 10% increase in total $ sales volume was mostly unit driven by fewer unit sales in the lower end and more in the higher end of the spectrum.
  • As Single Family home prices continue to go up and people value convenience more, we expect Townhomes / Duplexes to continue to be an active part of the market at a wide range of price points.
  • One of the biggest aspects to note is the shift where sales in townhomes took place year over year. Breaking this down into 3 segments paints an insightful picture into what occurred YOY best. In 2018 there were 66 sales under $500k, whereas in 2019 there were only 38 sales under $500k. From $500k-$1M there were 79 sales in 2018 vs 89 sales in 2019. Above $1M there were 20 sales in 2018 vs. 27 sales in 2019.
We are proud to have helped 138 people / families in 2019 - the most of any team or agent.

Condos

  • While the goal of this report is to understand how 2019 changed from 2018, to gain the most insights from this segment, it is important to go back a year further and include 2017. From 2017 - 2018 there was a 6.6% decrease of the average sales price YOY. This was primarily due to a decrease in high-end condo inventory and thus sales. In 2017, there were 24 condos that sold above $800k vs. 12 condos that sold above $800k in 2018. In 2019 more resale condos came on the market so there were 23 condos that sold above $800k.
  • This brought back the average sales price to $441k in this segment, (2017 average sales price was $437k & 2018 average sales price $408k) which shows how much the luxury condo market has an influence on the average sales price.
  • Looking at the opposite end of the spectrum in this segment, condos under $400k are almost identical YOY. In 2019, 180 condos under $400K sold vs. 184 in 2018 - only 2% difference year over year.
We are grateful to be chosen by so many of you to help with your needs.  We are now the #1 Team / Agent in both people helped and total sales.

Hayden Homes

  • The Hayden market continued to be very strong in 2019. Increasing prices in Steamboat, the new Hayden K-12 school project, having a brewery & coffee shop, and an increasing sense of community is making Hayden an even better place to live.
  • New construction became a larger segment of the market in 2019 as overall demand has increased.
  • Sales volume is down 17% due to the decrease in the overall # of units sold. As of this writing, there are only 13 Hayden homes listed in January 2020. The lack of supply (similar to single family homes in Steamboat) is a driving factor in the decrease of sales here.
  • As the price of single family homes continues to increase in Steamboat we expect this trend to continue in outlying areas like Hayden.
  • The higher end of the market also increased dramatically. In 2018, 6% of the sales were above $400k vs 17% of the sales above $400k in 2019.

Phippsburg /Yampa/Oak Creek Homes

  • Similar to Hayden, people interested in the Yampa Valley are exploring areas outside of Steamboat and finding beautiful areas they love. South Routt County is gorgeous and great people live there, so we are not surprised.
  • This is the only segment in 2019 that saw a decrease in the average sales price. The primary reason for this was that even with the 32% increase in the homes sold there were more entry level homes that sold in 2019. In 2018, there were only 3 sales below $175k vs 9 sales below $175k in 2019. This decreased the average sales price even when values were up overall.
  • Thus the average home in this segment is worth more than in 2018 as more people begin to explore areas outside of Steamboat. For a more accurate evaluation of your property, or one you might be interested in, please contact us for a personalized market analysis.

Stagecoach

  • Similar to Phippsburg/Yampa/Oak Creek, there were a few higher price point sales that drove this section of the market.
  • Sales above $600k were the main driver in the average sales price increase. 2018 had only 1 sale above $1M and only 2 sales (including the $1M) above $600k. 2019 had 2 sales above $1M and 7 sales (including the 2 at $1M) above $600k.
  • Note: Stagecoach is technically in Oak Creek for MLS purposes; however, Stagecoach is a separate area that is not reflected in the Oak Creek data above.

When Results Matter, Contact The Steamboat Group.

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Jon@TheSteamboatGroup.com