2020 Summer Market Update: Q1-Q2  
The Steamboat Report
The situation this spring reduced total Sales Volume but contract activity has come back strongly in July and August. Values are generally stable to up. People's desire to be in Steamboat is even stronger than before as people have more flexibility to be here and are purchasing or upgrading to allow that.

The first 4 categories cover the Steamboat Springs School district area including North Routt. This report compares 1st half 2020 to 1st half 2019.  

The Steamboat Report

When COVID19 became a part of all of our lives in the US in mid-March, uncertainty suddenly became a real factor in everyone’s day-to-day life.  Uncertainty about many things - health, jobs, and the broader economic future. One thing that hasn’t changed is that Steamboat is a special place with a great community, recreation, and schools that people enjoy living in and visiting. Many people have taken this as a time to reset and reconsider their goals.

The good news is that the value of most homes and land is either stable or up a bit.  While this report specifically focuses on January to June, it also includes a brief outlook moving forward. The market is giving us a good idea of how demand is coming back, so we will also discuss what we are seeing through the end of the summer as our short-term outlook on the real estate market.

Looking at total $ sales numbers this half, which are down significantly (-20%), will not tell you what is actually happening price-wise or looking forward. We broke half of the segments down into month-by-month graphs below.  These 3 segments (single-family homes, condos, and townhomes) have the most transactions, so they give us a clear picture of the shifts we are seeing. In addition, we did the same month-by-month analysis for the entire market to show that overall these trends are consistent across the market.

While on many fronts some uncertainty remains, it is clear that people want to spend more time in Steamboat, but do so thoughtfully. Our commitment at The Steamboat Group is to give you the info/insights you need to make the best decisions for you and help you achieve your goals or wait until the time is right for you.

Routt County Overview

- January through March Sales in $ were very strong (up 17%). The stock market dropped in the last 2 weeks of March but most transactions still closed as many took a long term view, some re-negotiated, and a few opted out.

- April and May were down (-54%) due to limited travel, limited nightly rentals and limited showing availability but people started putting things under contract setting the stage for June.  

- In June closings picked up (only down -16% vs June 2019). Showings picked and short terms rentals opened.

- This led to a very strong July which has been one of the busiest months we have ever seen.

One of the biggest contributing factors is that people are now able to work from home and have the opportunity to live or spend more time in a place that they love.

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.”

Moving Forward

We are seeing a strong July and August coming together and promising activity leading into the fall, so at this point, we are cautiously optimistic about how our market finishes 2020.

That said, most people take a long term view on things. While we can’t predict how any particular year will be in the future, we believe in people’s desire to live in Steamboat. Give one of us a call to discuss your goals, questions, the pros, cons, and anything else you would like.

Helping Steamboat

Many individuals are continuing to face uncertainty and difficulty. We realize that many in the community here in Steamboat are still feeling the effects on both their health and livelihoods so we are trying to do our part.  

We currently have two matching fundraising drives for Lift Up and CASA where we will donate $5,000 to each organization.  Our goal is to raise $20,000 in total.  Click Here if you would like to make a donation.


In addition, we want to help a few of our neighbors that need to move due to the COVID19 situation.  The Steamboat Group will charge no listing commission for up to 3 people who need to sell their home because they have lost their job, business, or become very sick. Fees for any broker who brings the buyer will still be required to be paid by the seller, likely no more than 3%.

Do you know someone that has lost a job, business, or has become very sick, and may need to sell their home to get through this? Please click the link below to tell us your story for our consideration.

For more details and reasonable guidelines & terms click below!❤️ The Steamboat Group Will List 3 Homes For FREE

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

Single Family

  • The Story here is similar to the story of the market - April and May were down about 50% of the sales volume vs. the same months in 2020. January, February, and March started out on par with 2019. But perhaps more telling and unique in this segment June was up 59% over 2019 and July is on the same trajectory through the middle of the month.
  • While the sales unit volume was down in April and May, the avg price for those months was slightly up. IE - while there was a 43% decrease in sales unit volume in April 2020 vs April 2019 and a 59% decrease in sales unit volume in May 2020 vs May 2019, the average values of homes in this time period did not go down. It was just the number of sales that decreased.
  • While the value of almost any particular home is up in the first half there was a higher percentage of homes worth under $1M that sold compared to 2019. In 2019, 38% (36/96) of the properties that sold were over $1M vs $31% (25/80) in 2020 were above $1M.
  • 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 $35,000 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 you better insight into both the luxury and traditional single-family home market.
  • Basically there were fewer higher-end sales in the first half. We haven’t seen signs of any reduction of values in this segment. Fewer homes sold but we are a small enough market that 2 sales make a big difference in the numbers even when this part of the market is definitely not weaker than before. If anything they are in a bit higher demand and selling quicker.
  • 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 2020, there were 5 sales that were below $2.3M (between $1.8M -$2.2M) with the lowest sale included at $1.7M.
  • In the first 2 weeks of July 2020, there were 4 sales of $2M or more ($2.1M, $3M, $4.6M, & $5.5M) and 14 pending so even if they all don’t close it looks like the high end is in good shape despite a high percentage of sales in the lower part of the range during the first half.
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

  • The story here is a little different in that only April as a month showed a significant decrease in units sold and sales volume but recovered in May to be double last year. Basically, Townhomes recovered a month earlier and we saw this first hand with an Epidemiologist putting a Townhome under contract in early April along with a few others. That was nice to see 2-3 weeks into this situation when the stock market was down significantly. People were seeing the long term value of being in Steamboat even then and it has worked out well for them.
  • 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, 13 of 73 sales (or 18%) were over $1M vs. 16 of the 52 sales (or 31%) in 2020 were over $1M. Additionally, there were 28 sales under $600K in 2019 vs only 16 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 69 people / families in 2020 - the most of any team or agent.

Condos

  • Similar to Single Family Homes, this segment saw sales volume comparable to 2019 in January, February, March, and June. April and May were 50% less in both units sold and transaction volume. These 2 months were what contributed to the units sold being down 33% and volume down 25% respectively.
  • The average price of condos has increased by 11.7%. The biggest contributors to this were slight increases in luxury condos and a decrease in condos under $250k. In 2019, there was only 1 sale just above $1M, vs 3 sales above $1M in 2020. On the opposite side of the spectrum, in 2019 - 21% (28/135) vs in 2020 15% (14/91) were under $250k. Additionally, looking back at the first quarter of 2020 in isolation, the average sales price was up 12.8%, so the increase for the second quarter was on pace with the first quarter.
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

  • Overall, The Hayden market has had strong appreciation over the last 2 years due to increasing prices in Steamboat, the new Hayden K-12 school project, having a brewery & coffee shop to enhance its appeal and an even stronger sense of community. Hayden continues to become an even better place to live.
  • The big story here is 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 2 sales in these 3 months vs 13 in 2019.
  • New construction became a larger segment of the market in 2018, 2019, and continues to be a factor as overall demand has increased along with there is a good supply of affordable lots.
  • 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 will expect this market to come back in a similar fashion as the Steamboat market is in July-September perhaps just a bit slower as local businesses recover.

Phippsburg /Yampa/Oak Creek Homes

  • The first half saw a 19% higher average sales price due to more sales (8 of 9) in Oak Creek and Phippsburg which has a higher price point and 1 sale in Yampa. In 2019 there were 8 (or 50%) of the sales were in Yampa. This has also been the main contributor to the 40% decrease in units sold.
  • 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

  • While the number of sales was the same year over year at 13, the price point of the homes that sold shifted up quite a bit. At the top of the spectrum, there were 8 sales above $550k in 2020, vs 4 sales over $550k in 2019 and below $550k there were 5 sales in 2020 vs 9 sales in 2019. As Steamboat Springs home prices continue to increase, we expect Stagecoach will continue to be an active market and see more $550K+ 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.

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Jon@TheSteamboatGroup.com