2019 Summer Market Update: Q1-Q2  
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 1st half 2019 to 1st half 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.

  • Total Sales during the first half of 2019 were $302M which is up 2.6% from 2018.
  • The number of sales were 495 in the first half of 2019, down 6.1% due to limited supply.
  • The average sales price was $558K in 2018 moving up to $610K in 2019 an increase of 9%.
  • Demand is consistent so most values have increased but there are exceptions where supply is high.
  • Properly priced and marketed homes are selling well but homes that reach too far are sitting a long time then selling for lower prices.
  • 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.
  • There is fairly little development breaking ground of any size but a fair amount of new construction in existing developments limiting supply.
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

  • 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.
  • The majority of single-family homes are shifting above $1M - there were 25 sales above $1M in this segment in 2018 and there are now 36 above $1M in 2019. There were 33 sales below $600k in this segment in 2018, and there were only 21 sales below $600k in 2019. With the later snowmelt this summer, this may moderate a bit in the 3rd quarter analysis as more county homes come on the market but sales over $1M are growing in the county too.
  • The average $787,503 home in 2018 is not worth $939,623 in 2019. The difference is a higher % of people are buying pricier homes and there are fewer homes at lower prices available than in 2018.
  • 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 has already given back $29,000 to Steamboat in 2019. Over $4,100 per broker in the first 6 months.  Our goal is to top $50,000 in 2019 😀.

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 shift in both the bottom of this segment as well as the increase in sales above the previous median and average were what drove these values up 26% and 30% respectively. 2019 saw 8 of the 11 sales above $2.7M, which was the average for 2018.
  • The Luxury segment has been strong in 2019 with more high end sales pulling up the average price. For instance 2 homes in Anglers sold for $4M and $5.6M, a ski in ski out home in Temple Knoll sold for $4.7M, and one on Heavenly View sold for $4.4M.
  • The location and quality of the homes sold improved vs. last year along with some appreciation. This is reflected in average $/sq ft rising 26%. The homes in this segment only increased in size by 3% year over year. To us this is signifying that people are looking for a higher level of quality in a great location, but not necessarily a larger footprint. This sentiment also matches with the conversations we are having with buyers.
  • It is interesting to note that using the top 10% of sales in single family homes instead of capping at a certain price to denote luxury gives us a variable scale as to what constitutes luxury for each year. In 2019 the 'lowest' sale in this segment was $2.3M. In 2018, there were 5 sales that were below $2.3M (between $1.8M -$2.2M).
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, we expect Townhomes/Duplexes to continue to be a more important part of the market from $200K to $2M. Low supply compared to demand is limiting sales in this segment.
  • The number of sales is down due to lower supply while the average prices are up giving us a 5% increase in sales volume for townhomes.
  • One of the biggest aspects to note is the shift in where the sales in townhomes took place year over year. In 2018 there were 33 sales under $500k, whereas in 2019 there were only 18 sales under $500k. There were only 7 sales above $1M in 2018 vs 13 sales above $1M in 2019. Comparing this there were almost an identical amount of sales YOY between $500k and $1M, 40 sales in this range in 2018 and 42 sales in this range in 2019. It was the shift in the ends of the spectrum - less sales below $500k and more sales above $1M, that effectively drove the average and median price up double digets YOY.
  • Similar to single family home sales, as inventory that is well priced comes on the market it sell quickly.
We were 38% more productive per broker than any other Top 4 Steamboat Firm in 2018. This advantage has increased significantly to 60% in 2019 due to the unique advantages we give our clients, and the results we get for them.

Condos

  • Most Condos have appreciated 5-15% in the last year. The decrease in average price is due to significantly lower luxury condo sales & inventory to sell in 2019. There were fewer sales over $700k (16 in 2018 vs 10 in 2019 a decrease of 38%).
  • More people have turned to single family homes and townhomes in the higher end of 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 just 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 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 the most of any team or agent and have already helped 83 in 2019.

Hayden Homes

  • The Hayden market is off to a strong start in 2019. The 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.
  • The number of sales is down due to limited supply and that is also pushing prices up.
  • The higher end of the market has increased dramatically. The highest sale in 2018 was $380k and in the first half of 2019 there were 5 sales above this, with the highest sale 17% higher at $445k. The amount of sales over $300k also almost doubled. In 2018, there were only 8 sales above 300k, vs 15 sales above $300k in 2019.
  • 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 continue to increase 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 quarter of 2019 was the dramatic increase in sales in this area changing from 9 sales in 2018, to 15 sales in the first 2 quarters of 2019.
  • In addition, there has been a major shift in the homes that sold in the first half of 2019 and the decrease of 2.9% YOY in this case is not as telling as the 22% increase in the median.
  • There was one sale in 2018 of a house for $650k - primarily based on the land included in the sale but beyond that, the highest sale was at $268k. In 2019 there were 8 sales above $268k so the main part of the market is actually much healthier in 2019 as reflected in the median price rising 22%.

Stagecoach

  • The biggest news in this part of the market was the big increase in the number of sales in the first quarter of 2019. In 2018 there were 9 sales in this area, in 2019 there were 13 sales.
  • This is a similar story to that in Phippsburgh/Yampa/Oak Creek in that one sale in 2018 had a large impact on the numbers. However, the difference is that while 2018 had a sale at $1.1M (a unique lakefront luxury property) and the highest sale in 2019 was at $720k, there were also significantly more sales under $500k in 2019 (8 sales under $500k in 2019 vs 4 sales under $500k in 2018), which is why both the average and the median are down YOY.
  • 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 for MLS purposes. Stagecoach is a separate area and it performs a bit differently so we report it on it's 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.

When Results Matter, Contact The Steamboat Group.

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Jon@TheSteamboatGroup.com