2020 End of the Year Market Update: Q1-Q4  
The Steamboat Report

Top 5 Things to Know About the Steamboat Market

1. More people can be in Steamboat more of the time and are less attached to where they were living. Many people now have more flexibility in where they work from and have taken the time to re-evaluate their priorities over the last year. Individuals are seeing that they can still work at a high level out of the office, and achieve their larger life goals while spending more time in the mountains. 

2. People are spending more time outside, with their families, and in their homes. This is either bringing people to Steamboat, as opposed to other places, or making them re-think their home here. There are not many towns where nearly everything they want to do is 10-30 minutes away. We are also in our homes more often now, which has many people looking for a different features or more space. 

3. Green acres are the place to be. We saw a big increase in the popularity of rural homes in 2020. Having more space to roam is appealing as people re-think their goals. Our valley is a rare place to find 35 acre parcels near a ski area that don’t cost well over $1M.  High-speed internet options in rural areas are improving with Luminate laying fiber to serve rural Routt County, and SpaceX’s Starlink internet delivering high speeds in beta test—so why not combine your career with a rural ski town life?

4.  More people’s mountain homes became their primary residences in 2020. This year is looking similar. Many people are just as productive, if not more productive, working remotely and more companies are giving their team the ability to work remotely. So, why not be in Steamboat with our awesome sense of community, schools, and lifestyle?

5.  Land is selling Faster. The market for land is very strong and values are increasing. This is clearly due to the limited inventory of homes, which is pushing more people to build. At the same time, it is increasing the value of existing homes since it is more expensive to replace them. It is often the case that an older home, in need of work, is worth more for the land than the home. There are tradeoffs to consider between building and buying, so let us know if you want to strategize. 

What do you see for the market over the next few years/this winter?

-       We all know that there will be ups and downs in the economy and real restate market, but there are several factors that we believe make property in Steamboat a good long term asset.

-       Covid-19 pulled in plans for many and the first wave Steamboat's real estate market saw was strong, so many wonder if things will pull back next year. That is a possibility, but many people will have waited a year to purchase a property, in order to see how working remotely goes and whether it is practical long-term. Others didn’t find the property in the first wave and are still actively looking. These interested buyers have been calling us these past few months and are driving a very strong winter market, compared to the more relaxed pace that we are used to.

-       Steamboat is a great place to live or vacation, and more people are able to be flexible in where they live. This gives us comfort looking forward.

-       Prices are up but increasing values also bring more properties on the market, as current owners consider their goals to sell once they get a certain amount of equity or their needs change.

- Inventory is very low, which does make buying more difficult. It also means that it would take much more inventory and lower demand for prices to pull back moderating concerns about current pricing. Basically, we have about 1/4 of the inventory as we started 2020 with; so inventory can go up quite a bit and demand could moderate a fair amount before we would expect prices to decrease.

-       In a way, nothing has changed. Steamboat is a great place, with a wonderful community that many people aspire to be a part of.  This has been true for a long time and we don’t see that changing.

The Steamboat Group gave over $90,000 in 2020 to honor our commitment to help keep Steamboat special.

Single Family

  • The average sales price of a home in Steamboat was up 16% in 2020. More notable though was the 55% increase in total sales. The limited supply and increased number of buyers made this segment very active.
  • One of the big stories in this segment is the increased popularity of North Routt as rural areas with great recreation opportunities improved faster than the overall market.
  • In 2019, only 19 of the single family home sales were in Clark. In 2020, 39 of the single family sales were in Clark. In 2020, the average sales price of a single family home in Clark in 2020 was $679k which brought down the average. Now that fiber internet has started to light up up north we anticipate the popularity and value of North Routt properties to grow.
  • Many individual homes appreciated more than this given the activity the last few months so let us know if you are curious what your home is worth now.
  • See Luxury Single Family Homes below for how the top 10% of the market by units is doing. We separate them out so the insights are more meaningful.
The Steamboat Group -  6x Best of the Boat Real Estate Agent & 2x Best of the Boat Real Estate Firm.

Luxury Single Family

  • The Luxury segment includes the top 10% of Single-Family homes (units) by value. In 2020 it took a $2.5M home to be in the top 10 % vs. $2.3M.
  • The increase in the median value is more representative of the appreciation in this segment because there were not many homes available over $10m in 2020 vs 2019. If you are curious how much a particular home increased … values and the number of luxury sales increased more in the 2nd half than in the first half so even the median increase is less than what most homes appreciated in 2020.
  • We saw values of individual homes increase 8-20%. In 2019, there were 2 sales above $10M vs. only 1 sale above $10M in 2020. In 2020 multiple ranches in the this price range sold but few with houses on them were available compared to in 2019. Additionally, in 2019, there were only 12 sales between $3-5M vs 21 sales between $3-5M in 2020.
  • Total Sales volume in this segment is up 39% as more people are able to spend more time here. They are looking for more space and planning to be here more than before and need office space so they often choose to spend more as a result. We also saw quite a few more spec homes in the $3-5M range that were started before this situation (as they take 12-18 months to build) but sold more quickly as a result.
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 93-305% more productive per broker than any other Top 5 Steamboat Firm in 2020.

Townhomes

  • Total sales of townhomes was up 50% and average price was up 16% as townhomes continued to become a more popular option for people.
  • The biggest shift here is that sales have moved up into the luxury side of the market. This is driven in part by increasing Single Family home prices and few new entry level townhomes are being built. We expect Townhomes/Duplexes to continue to perform well and be a more important part of the market even as low supply compared to demand is limiting sales in this segment.
  • The sales of over $1M were instrumental in driving up the average sales price. In 2019, 27 of 154 sales (or 18%) were over $1M vs. 55 of the 198 sales (or 28%) in 2020 were over $1M.
  • It's worth noting that the average price is the same as homes given people are attracted to the higher finish level they can get at the same price point, often a better location, along with a bit lower perceived maintenance.
We are proud to have helped 160 people / families in 2020 - the most of any team or agent.
Thank you for making us #1!

Condos

  • This is one of the more consistent segments year over year. The shift upwards in sales over $2M and strong demand along with low supply at every level were driving factors of the increased average sales price. In 2019 there were only 10 sales over $1M vs 22 sales above $1M.
  • Looking at the other side as well we saw a significant decrease in number of condos worth under $250k on the market. In 2019 - 18% (28/334) were under $250k vs in 2020, 8% (9/395).
  • Total sales of condos were up 41% reflecting both local demand and the ability of more people able to spend enough time here to justify a second home.
We are grateful to be chosen by so many of you to help with your needs.  We continue to serve more people than any other Team or Agent.

Hayden Homes

  • The uncertainty with COVID-19 had a large impact on the Hayden market. There were almost 50% fewer sales for the first 6 months of the year vs 2019.
  • Looking at Q2 (April, May, and June) in isolation - there were only 4 sales in these 3 months vs 15 in 2019. However, looking at Q3 and Q4 there were 36 sales in 2020 vs only 27 in 2019. So, while the overall units did not change vs. 2019, the timing of these sales did. We anticipate the momentum to continue and sales in Hayden to increase in 2021 vs both 2020 and 2019
  • As the price of single-family homes continues to increase in Steamboat we expect the average sales price to continue to increase in areas like Hayden and we expect this market to come back in a similar fashion as the Steamboat market perhaps just a bit slower as local businesses and workers recover.
  • What we love to see is that Hayden will complete a great new school building, attracting more restaurants, and the community there is strong. Hayden has a bright future in our opinion.

Phippsburg /Yampa/Oak Creek Homes

  • The first half saw a 19% higher average sales price primarily due to a decrease in sales below $250k. In 2019, 48% (20/42) of the sales were under $250k, meanwhile in 2020 26% (10/38) of the sales were below 250k. This is driven by the appreciation these areas are seeing as they follow what is happening in Steamboat resulting in few homes are available under $250K.
  • To give a fair representation of the prices, we did not include the sale of a $5.8M 755 acre ranch with a 3bd/2ba 1,847 sqft home in the average or median numbers. It is only in total sales and units sold. Most of the value was in the land since it backed up to National Forest and including it in the averages would have distorted what is happening for most homes.

Stagecoach

  • The appeal of rural homes with recreation close by has increased faster than the overall market which is particularly true in Stagecoach.
  • Average price was driven by the price point shift above along with a $5M ranch that also made up 16% of total sales volume. Even without it sales still almost doubled.
  • As Steamboat Springs home prices continue to increase, we expect Stagecoach will continue to be an active market and see more $500K+ sales.
  • Note: Stagecoach has an Oak Creek address but it separate in the MLS and is a distinct market with more of a recreation component so we report it on its own.

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Jon@TheSteamboatGroup.com