2020 Fall Market Update: Q1-Q3
The Steamboat Report

Top 5 Quick Takeaways

1. The past 3 months have been busy - With a compressed selling season and more people able to work from anywhere. Sales volume was up 68% in July, 75% in August, and 171% in September.

2. Total $ sales volume through the 3rd quarter is up 30% vs. 2019 while units sales are up 10%.

3. More High End Sales in September -
In September of 2020 there were 17 sales over $2M (32% of the total sales volume) vs. in 2019 there were only 2 sales over $2M (7% of the total sales volume).

4 - Green acres are the place to be -
We saw a big increase in the popularity of rural homes to the highest level I have seen in 15 years as prices increase in town while at the same people are valuing getting away from it all in the country.

5.  Land is selling Faster -
While not covered in this report land is now selling significantly faster and often for more than we saw in 2005 or 2006 but not for the most part at the values we saw in 2007. This is clearly due to the limited inventory of homes which is pushing more people to build.

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

-       We all know that there will be ups and downs

-       Covid pulled in plans for many and the first wave was strong so many wonder if things will pull back next year. That is a possibility, but I would also consider that many people will wait a year to see how working remotely goes and if it is practical long term. Others didn’t find the property in the first wave and are still actively looking.

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

-       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.

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

A few quotes from recent Wall Street Journal articles that capture the sentiment of buyers we are seeing in Steamboat.

‍"For some, it was always the plan and the pandemic just accelerated the plan while others had a change of heart about living in the city.”

“As many firms embrace remote working people are taking the opportunity to untether from astronomically priced cities and get more space, scenery, and quiet …

“You can work from anywhere right now and I don’t think that’s going to change.”

“Whatever it is that brings joy and relaxation is being given a much higher priority.”

The Steamboat Group -  6x Best of the Boat Real Estate Agent & 2x Best of the Boat Real Estate Firm.

Single Family

  • The value of the average single family home is up 8% in the first 9 months of 2020. More notable though was the 44% increase in total sales. The limited supply and increased number of buyers made this segment very active. If you are looking for a home it pays to act quickly and be competitive. If you are thinking about selling in the next year or two the pricing now is very attractive.
  • One of the big stories in this segment is the increased popularity of North Routt. In 2019, only 10 of the single family home sales were in Clark. In 2020, 28 of the single family sales were in Clark. The avg sales price of a single family home in Clark in 2020 was $649k which brought down the average. As fiber internet starts to light up up north we anticipate the popularity and value of North Routt properties to grow.
  • Most individual homes appreciated a bit more so let us know if you are curious what you homes 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 gave over $57,000 back to our valley in 2019 and over $63,000 in 2020 so far to honor our commitment to help keep Steamboat special.

Luxury Single Family

  • The Luxury segment includes the top 10% of Single-Family homes (units) by value.
  • Total Sales volume in this segment is up 40% so far this year as people are now able to spend more time here so they are looking for more space whether they are upgrading or just buying larger more expensive homes than before. Part of this is that we are seeing 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.
  • In 2019 there were only 4 sales between $3-4M vs. in 2020 there were 8 sales between $3-4M.
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 2019.

Townhomes

  • Total sales volume was up 32% and average price was up 23% 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. We expect Townhomes/Duplexes to continue to perform well and be a more important part of the market from $200K to $2M 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, 14 of 13 sales (or 12%) were over $1M vs. 33 of the 121 sales (or 27%) in 2020 were over $1M. Additionally, there were 51 sales under $600K in 2019 vs only 36 sales under $500K in 2020.
  • 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 153 people / families so far 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. We are continuing to see the number of luxury condo sales grow but at the moderate pace of 10%.
  • The average price of condos has increased by 11.7%. The biggest contributors to this is the decrease in number of condos available and also worth under $250k. In 2019 - 19% (46/238) were under $250k vs in 2020, 10% (26/248).
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 big story here is the uncertainty with COVID-19 had a large impact on the Hayden market with sales down 23% year to date. There were 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 (July, August, September) in isolation there were 19 sales in these 3 months vs 21 in 2019.
  • The uncertainty partially froze sales in the first half with a fairly good recovery in Q3. The pace of sales in Q3 got back to normal but didn’t make up for the first half. They Hayden market is almost entirely local buyers so it didn’t benefit from people’s increased ability to work from anywhere.
  • 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.

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, 55% (17/31) of the sales were under $250k, meanwhile in 2020 27% (6/22) of the sales were below 250k. This is driven by the appreciation these areas are seeing as they follow what is happening in Steamboat.
  • 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 price point of the homes that sold shifted up quite a bit. At the top of the spectrum, there were 26 sales above $400k in 2020, vs 14 in 2019 and below $400k there were only 13 sales in 2020 vs 18 sales in 2019. As Steamboat Springs home prices continue to increase, we expect Stagecoach will continue to be an active market and see more $400K+ sales.
  • Additionally there were significantly more sales in August and September in 2020. In 2019 there were only 6 sales in these 2 months, vs 23 in 2020. Rural properties did very well as prices increased in Steamboat and people wanted to get away from it all.
  • 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 its own.

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