2019 Fall Market Update: Q1-Q3  
The Steamboat Report
Our goal at The Steamboat Group is to help our clients make informed decisions about real estate in Steamboat. 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.    

The first 4 categories cover the Steamboat Springs School district including North Routt.This report compares first 3/4 2019 to 1st 3/4 2018.  

When Results Matter call The Steamboat Group, we can give you advantages no one else can and our results prove it.

The Steamboat Market

The real estate market in Steamboat / Routt County continues to be strong. Our recreational activities, great schools, and amazing community continue to convince locals and visitors to own property here. Demand has been steady, supply is limited by the characteristics of a mountain town. The vast majority of people purchase a home to use it and about 50% are paying cash - so the fundamentals of the market feel good.

  • There is fairly little development breaking ground of any size but a fair amount of new construction in existing developments limiting supply.Home Building Cost is being quoted in the $400-750 per square foot range so existing homes are often a good value
  • The City of Steamboat Springs just approved West Steamboat Neighborhoods to provide more entry-level housing for locals with 60% of voters supporting it. The plan includes 450 homes to be built over 20 years with 1/3 being lower cost deed restricted or rental apartments.
  • Properly priced & marketed homes are selling well but homes that reach too far are sitting a long time then selling for lower prices.
  • When diving into the data, through the first 3 quarters of the year there were 2 notable sales in 2018 (a $16M ranch sale and 2 parcels at the base of the ski area totaling $11.6M) that helped to created one of the highest sales volume months of 2018. These 2 sales alone accounted for 4.4% of total sales volume in 2018 through the end of Q3.  This means that because the average sales price is STILL up, that the actual increase in the average sales price in Routt County is actually higher than the 2.7% mentioned in the slide to the right when discounting the high-end outlier sales year over year.
  • Demand is consistent so most values have increased but there are exceptions where supply is high.
We are humbled to have been selected as 2019 Business Philanthropist of the year by the Yampa Valley Community Foundation.  The goal of our giving is to "Help keep Steamboat Special"

Single Family

  • Two key things are happening, We have mostly moved beyond the $600K price point in town / West Steamboat, plus many more homes over $1.5M are selling. There were 59 sales below $600k in this segment in 2018, and only 33 sales below $600k in 2019. In 2018, there were 12 sales above $1.5M and in 2019 there were 21 sales above $1.5M.
  • Low inventory, high new-construction costs, and broad-based demand continue to drive the market. While we don't report on Days on Market, homes that have been coming on in this segment that are priced & marketed well are selling quickly. The decrease in the number of units sold is primarily a function of fewer single-family homes coming available on the market.
  • Even though the average price has gone up to $943k in 2019, this does not mean that a home in 2018 that was valued at $805k is valued at $943k today. The 17% increase in the average sales price is based in a higher % of people are buying pricier homes and there are fewer homes at lower prices available than in 2018.
  • In our analysis last quarter we mentioned that there might be a shift down in this average price as the year progressed. Our thought was that as a higher percentage of homes in the county sell at a lower price points it would bring the average down. This did not end up being the case as sales over $1M are growing in the county too.
  • See Luxury Single Family Homes for how the top 10% of the market by units is doing. We separate them so the averages are more meaningful.
🙏We are thankful to live in here so The Steamboat Group has already given back over $40,000 to Steamboat in 2019 to help keep Steamboat Special. That's over $5,000 per broker in 9 months.

Luxury Single Family

  • The Luxury segment includes the top 10% of Single Family homes (units) by value.
  • Looking at these separately gives you better insight into both the luxury and traditional single family home market.
  • The increase in sales prices above the previous median and average were what drove these values up 11% and 23% respectively.
  • For instance, there were 5 sales >$4M in the first 9 months of 2019 vs 2 in 2018. Also, in 2019 there were 2 sales greater than the highest sale in 2018, with a $10M sale on Pine Drop having the largest impact on these numbers.
  • The location and quality of the homes sold improved vs. last year along with some appreciation. This is reflected in average $/sq ft rising 24%.
  • We have now gotten to the point that 75% of luxury homes are under 7,000 sq ft after a few years of transition from those homes being the majority. In general the market is showing a strong preference for smaller homes except on truly exceptional parcels. This matches the conversations we are having with buyers who are looking for homes with refined floor plans that are easier to maintain. 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 floorpans they can actually use.
The Steamboat Group -  5x Best of the Boat Real Estate Agent & 2018 Best of the Boat Real Estate Firm.

Townhomes

  • As Single Family home prices continue to go up, Townhomes/Duplexes are becoming a more important part of the market from $200K to $2M. Demand is good, but low supply compared to demand is limiting sales in this segment.
  • One of the biggest aspects to note is the shift in where sales in townhomes took place year over year. In 2018 there were 54 sales under $500k, whereas in 2019 there were only 30 sales under $500k. Above $500k, there were almost identical sales year-over-year. A lack of inventory below $500k effectively drove the average and median price up.
  • Similar to single family home sales, as inventory that is well priced comes on the market it sells quickly.
🔥We have been 38% more productive per broker than any other Top 4 Steamboat Firm in 2019 due to the unique advantages we give our clients, and the results we get for them.

Condos

  • Most Condos have appreciated between 5-8% in the last year which this quarter is reflected in the increase in average sales price.
  • While this report primarily focuses on year-over-year numbers, it is important to note that this is the first time in a year (looking at the quarterly analysis) that the average sales price is up. While the average price statistically has been down, it has been because the luxury sales have been down. Through the first 3 quarters of 2019 there were 14 sales above $850k compared to only 7 sales above $850k in 2018. The return of a few luxury sales is the main reason why the values this quarter reflect what we are seeing across the board in the condo market.
  • However, it is still true that more people have turned to single family homes and townhomes in the higher end of the market as they spend more time here, as seen above in the single family stats.
  • The market is ready for new condos in the base area. The Thunderhead and Ski Time Square parcels sold last year to a developer from DC. They are testing the market with a very small building in the planning process. In addition, the owner of the Ptarmigan announced a $5M renovation which makes a new development there less likely. Finally, the remaining land in Wildhorse was just listed - so we may see more activity there.
  • We are hoping to see more affordable condo development in the future. There is one project just up Hilltop but the larger one south of Walgreens was canceled due to rising costs.
😎 We are proud to have helped 103 families in 2018 and have already helped 125 in 2019 the most of any team or agent

Hayden Homes

  • The Hayden market continues to be strong in 2019. The increasing prices in Steamboat, the new Hayden K-12 school project, having a brewery and coffee shop, and an increasing sense of community is making Hayden an even better place to live.
  • The number of sales is down due to limited supply. That and more new home sales are also pushing prices up. As of this writing (October 10, 2019) there are only 18 homes listed. The 18 homes that are listed have an average list price of $386,539 at $217 sq/ft - 17% above the current average sales price.
  • The higher end of the market has increased dramatically. In 2018 there were only 2 sales above $400k. In 2019 there have been 6 already. The amount of sales over $300k has also almost doubled. In 2018, there were only 15 sales above $300k, vs 28 sales above $300k in 2019.
  • Sales at the higher end of the market increased significantly, while sales at lower price points decreased dramatically. In 2018 there were 29 sales below $300k, whereas in 2019 there were only 12 sales below $300k. This is why sales volume was only up 3%, despite such a shift in the market.
  • New construction became a larger segment of the market in 2018 and continues to be a factor as overall demand has increased.
  • As the price of single family homes continues to increase in Steamboat, we expect the average sales price to follow that trend in outlying areas like Hayden.

Phippsburg /Yampa/Oak Creek Homes

  • Similar to Hayden, people interested in the Yampa Valley are exploring areas outside of Steamboat and finding that our whole county is beautiful.
  • The big story in the 1st nine months of 2019 was the dramatic increase in sales in this area changing from 18 sales in the first 3 quarters of 2018, to 30 sales in the first 3 quarters of 2019.
  • This is definitely a case where some of the numbers paint a story that warrants a deeper look. On the higher end, in 2018 there were only 4 sales above $300k. In 2019 there were 10 sales above $300k. However, on the lower end, 2019 had 5 sales below $150k, which was the lowest sale in 2018. This makes the median price go up 6% while the average price is down 12%.
  • The big story is volume and units are up significantly in this area. Because of the diversity of the sales, the median and the average sales prices aren't representative of the changes.
  • If you're interested in learning the value of your property specifically, please feel free to reach out.

Stagecoach

  • The biggest news in this part of the market was the large increase in the number of sales above $600k. In 2018 there was only 1 sale above $600k vs in 2019 there have been 5 so far. While the average sales price did increase 15.6%, the reason it was not even higher is that 2018 had 8 sales between $500k-$600k, whereas 2019 had only 3 sales in this same range. This was the primary factor that increased the average sales price.
  • As Steamboat Springs home prices continue to increase, we expect Stagecoach will continue to be an active market and see more $600K+ sales.
  • Note: Stagecoach is technically in Oak Creek, but only for MLS purposes. Stagecoach is a separate area and it performs a bit differently so we report it on its own.
  • Hopes that the Stagecoach Ski area will be re-opened have gone dormant for now so real demand is replacing some of the purchases that hoped that project would succeed.

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