2020 End of the Year Market Update: Q1-Q4  
The Steamboat Report
We hope that each of you and your loved ones are doing well in this uncertain time. Steamboat Springs has grown even stronger as a community with an incredible outpouring of support for organizations and people in need.

The recent events started to have an effect on a few existing contracts in mid-March. While some people decided to cancel most people completed the transactions they had in process. New interest paused almost completely for a couple of weeks. Given this, we have provided a closer look at March as a whole and also the last 2 weeks below.  Please reach out to us for an update as you consider how this factors into your plans.

In the first 2 weeks of April, we have seen a fair level of interest return and quite a few people move forward while others are monitoring the situation. Fortunately, we came into this as a community people want to be a part of.  We have a solid foundation of long term owners, strong equity as a market, tight loan standards, low inventory due to consistent demand, and limited building over the last 10 years.

We are having many deep conversations with people regarding the market, their goals, and their thought process during this time. Some people are waiting - in that case, we advise them to watch the market and prepare until they are comfortable taking their next step.  

After a good discussion of the pros and cons, some are taking a closer look at the market and proceeding cautiously with their longterm plans. They are very conscious of the situation, but like having less competition, getting a little better price, and value the significant savings over the longterm with interest rates in the low 3% range.

Others see quality time outdoors with their loved ones as the biggest factor and are confident that the market will perform well over the 5-20 years they plan to own here.

Our goal at The Steamboat Group is to help you make informed decisions about real estate in Steamboat. Scroll down for a concise yet informative guide to what is happening in the Steamboat Springs Real Estate market - Notable trends, changes, and shifts over time.

- Jon Wade - Team Lead - Broker/Owner on 4-20-2020

* The first 4 categories cover the Steamboat Springs School District boundaries including North Routt. Then Hayden and South Routt.

*This analysis covers Q1 2020 vs. Q1 2019.  Due to the seasonality of the market in Steamboat, it is more appropriate to examine data Year-over-Year than Quarter-to-Quarter.

The Overall Market

Quarter 1 - (January - March) as a whole

Total sales increased 17% from 2019 due to 2 large sales (A $5.8M home in January and a $7.45M ranch in March). If you take out the 2 large sales it increased by 1%. The average sales price is up 23% from 2019 or if you take out the 2 large sales in 2020 (that were higher than any sales in Q1 2019) the average is up 8.5%

  • 2020 sales volume - $101M - Average sales price - $779k - Median - $499k (without the $5.8M home in January and a $7.45M ranch in March) the average was $687K, 8.5% higher that 2019)
  • 2019 sales volume - $86M - Average sales price - $633k - Median - $517k

The month of March
March total sales were strong, increasing 20% even after adjusting for the large ranch sale and a fair number of contract cancellations as the current situation set in. Median prices were basically flat from a year ago and Average prices were up 9.6% after adjusting for the large ranch sale.

  • 2020 sales volume - $40M - Average sales price - $757k - Median - $475k (without the $7.45M ranch sale the average was $629K an increase of 9.6%).
  • 2019 sales volume - $27M - Average sales price - $574k - Median - $480k

The last 2 weeks of March were still good
Total sales in the last 2 weeks of March after the shutdown of the ski area were basically flat once adjusted for the large ranch sale. We saw a very tough stock market and a short burst of contract cancellations in those two weeks so it is encouraging that sales still matched the same 2 weeks in 2019. Our conversations during this time revealed that people were very conscious of what was happening, and those with a long term view generally moved forward. It's not really meaningful to compare prices in this short of a time frame since 1 or 2 sales can swing the average price dramatically without actually being a trend.

  • 2020 sales volume - $22M - Average sales price - $942k - Median - $536k (without the $7.45M Ranch in late March) the average was $660K.
  • 2019 sales volume - $15M - Average sales price - $562k - Median - $449k
The Steamboat Group -  6x Best of the Boat Real Estate Agent & 2x Best of the Boat Real Estate Firm.

Single Family

  • This part of the market was fairly stable with the variety of homes sold changing slightly without a noticeable change in the trend.
  • Low inventory, high new construction costs, and broad-based demand continue to drive the market. Homes that have been coming on in this segment that are priced & marketed well are selling fairly quickly.
  • The center of the single family home market is shifting above $850K. There were 11 sales above $850K in this segment in 2019, and 15 above $850K in 2020. There were 5 sales under $450k (3 of them modular) in 2019 vs. only 1 sale under $450k in 2020 which was a small log home in the Steamboat Lake subdivision.
  • Nice homes just west of town are still available in the $650-850K range and a new K-8 school is being built there.
  • Growth in total sales has slowed a bit limited by supply. We expect this part of the market to be fairly stable given the number of people who are choosing to move to Steamboat in this price range.
  • See Luxury Single Family Homes below for how the top 10% of the market by units is doing. We separate these segments so the averages are more meaningful for the bulk of the market since a few luxury sales would have added 50% to total sales of Single family homes.
The Steamboat Group gave over $57,000 back to our valley in 2019 and over $25,000 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. Looking at these separately gives us better insight into both the luxury and traditional single-family home market.
  • This segment is unique because a few sales can shift the numbers considerably.
  • Values of most homes are up 5-7% in the last year but the average price moved dramatically based on 1 of the 4 homes that sold.
  • In 2019 the highest sale was $3.1M and in 2020 the highest sale was $7.45M. While we focus on giving everyone luxury service, we were honored to be a part of this transaction because our clients are truly the kind of down to earth people that make Steamboat special.
  • The average size of homes sold increased dramatically due to one sale at $7.45M, whose square footage was 14,759 sqft. That is the primary driver of the 39% increase in the $/sqft and the 50% average sales price. Without this sale, the average $/sqft was up 7% which is a more accurate picture of the market.
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

  • 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 even as low supply compared to demand is limiting sales in this segment.
  • 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 along with a bit lower perceived maintenance.
  • The sales over $1M were instrumental in driving up the average sales price. In 2019 5 of 28 sales (or 18%) were over $1M vs. 10 of the 21 sales (or 48%) in 2020 were over $1M, Additionally, there were 8 sales under $500K in 2019 vs only 4 sales under $500K in 2020.
  • Similar to single family home sales, as inventory that is well priced comes on the market, these units sell fairly quickly. There are very few single family homes in town currently available under $750K.
We are proud to have helped 138 people / families in 2019 - the most of any team or agent.

Condos

  • An increase in the average sales price was due to the return of supply in the luxury condo market. In 2019, there were 0 sales above $950k due to almost nothing on the market vs. 4 sales above $950k in 2020. However, the median remained relatively static. The reason for this was that the remainder of the market was fairly similar year over year. There were 41 sales under $550k in BOTH 2019 and 2020.
  • This return of luxury condo listings brought back the average sales price to $450k in this segment for the first time since 2017 when it was $482K. In 2019, the average was $398K and in 2018 it was $431K. The last time there was more than 1 sale above $1M in the first quarter was 2017.
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 had strong appreciation in 2019 due to increasing prices in Steamboat, the new Hayden K-12 school project, having a brewery & coffee shop, and an increasing sense of community. Hayden is becoming an even better place to live.
  • The market continues to progress in Hayden. While the average sales price was up 1.7% - the median was up 9%. In 2019, 4 of 7 or 57% of sales were over $300K. In 2020 6 of 8 or 75% of sales were over $300k. The average sales price was not up as much as the median because of one sale of a 1 br home Downton on HWY 40 in 2020 that was significantly lower than any sale in 2019. We helped that seller get a great price and are committed to getting the best results for our clients at every price point.
  • 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

  • First quarter was strong in this area due more sales in Oak Creek which has a higher price point and no sales in Yampa.
  • As a result, average price increased 20% vs one year ago and the average $/sf increased 26%.
  • To give a fair representation of the market, we did not include the sale of $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. 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

  • This segment is similar to Phippsburg/Yampa/Oak Creek in that one sale was primarily responsible for the increase in the average and median prices. And while not as dramatic as the segment above, the highest sale in 2019 was $665k vs a sale of $840k in 2020.
  • 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 its own.

When Results Matter, Contact The Steamboat Group.

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Jon@TheSteamboatGroup.com