2021 - First Three Months - Market Update
The Steamboat Report
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.

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

The Overall Market

As you know real estate markets across the country are busy and often described as crazy. Our goal here is to dig deeper and explain what we are seeing here in Steamboat along with the top level reasons behind it. Things are busy in Steamboat and we are seeing multiple offers on most but not all properties that come on the market. We talk with brokers across the country in our key feeder markets like Denver, Houston, Minneapolis etc., other resorts, and the big cities on the coasts. So far things are much more reasonable in Steamboat than most of these cities but it does feel crazy to us.

Steamboat has always been a great place to be and now more people have the flexibility to be here since they can work from home.   Location neutral workers in Steamboat have gone from 30% in 2019 to well over 40% now. Long term, the experts are predicting that over twice as many people will continue to work from home as in 2019. I’ll add that this also means people that could be here 1-4 weeks before can now be here 2-4 months a year.

The real story on the demand side is that more people can now be in Steamboat for extended periods of time or full time. Most people who planned to be here can do it earlier now.  Nearly everyone who is buying plan on using their home and it is not just for investment.  Buyers have been very well qualified for their loans unlike in 2007 and 50% or more are purchasing with cash.

On the supply side the amount of new building has been much lower than demand for a long time. There has been very little new development (neighborhoods) for a long time. In addition, some people have waited to sell given the events of the last year, and others are concerned that they won’t be able to get something else if they do sell.  If you fall into the later, please reach out with questions. We have strategies that work well to address selling and buying here in Steamboat at the same time.

As you look at this report you will see some pretty dramatic increases. However, many of these increases can be described when looking at the specific details behind just the numbers. We encourage you to look next to each graphic for the story behind what is happening in each part of the market.

As we work with Buyers we are having deep discussions on what is happening in the market and their goals.  When the right property comes on the market we coach them on winning strategies along with the tradeoffs involved. Then they can make the best choices for them as they choose the price and terms to make an offer that is much more likely to be successful. We are also having a fair amount of success reaching out to owners of properties that our buyers are looking for and reaching a deal before they hit the market so ask us if that is appealing to you.

For Sellers, we know most things will sell quickly, but at the same time it is even more important to nail the marketing then get it in front of the most qualified buyers that are looking for similar properties immediately. Because with more offers we can significantly increase your chances of getting not only a higher price, but getting you an appraisal gap, waiving the appraisal or a cash offer along with limited contingencies so you have a smoother closing process.

Right now many brokers are taking just a few pictures, often with a cell phone, skipping most of their already limited marketing tools, not doing a 3D tour so people out of town can see if it is fit etc. We know that while the property will likely still sell we are committed to go above and beyond to get you a great result.  We believe it is time to keep improving, continuing to work hard to set the highest standard for marketing, target the most likely buyers to create excitement / get more offers, and are doing even more now to get our clients the best terms. If you are looking to sell and then buy another property, we have several strategies to make this work so don’t give up, give us a call and we can discuss how to achieve your goals.

We hope that you find some insights in this report that are useful to you. At the same time, the market is very granular so if you want to know about your property or the ones you aspire to have please reach out. We will listen to your questions and give you personalized insights with absolutely no pressure. We know that if we take care of your needs when you are ready we will be successful too.

Our goal at The Steamboat Group is to help you make informed decisions about real estate in Steamboat then help enable you to reach your goals. 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..

Single Family

  • The average sales price increased 47%. While this is a dramatic increase - it is really a combination of increased demand, appreciation (which is probably closer to 15%+ year over year) and homes not being available in lower price points. People are spending more time in their homes so they are looking for more space and they are also gravitating more to rural living.
  • Sales volume was up over 2 times despite low inventory this segment was incredibly active. Basically while there is very little on the market at one time there is a steady stream of homes coming on the market and they sell quickly. On April 7, there were 42 single family homes available compared to 55 sales in Q1.
  • This time of year is stronger for 2nd home purchases and the bidding is competitive. To some extent locals are staying in place which we expect in the winter so it will be interesting to see how many choose to enter the market this summer as sellers.
  • In 2020, the highest sale in this category was $1.8M (see below for luxury homes). There were 17 sales above this price that sold in 2021 vs. 2020. The center of the single family home market has now shifted above $1M and we expect this to remain even if more locals choose to sell this summer. There were 12 sales under $700k in 2020 vs. only 4 sales under $700k in 2021.
  • Nice homes, just west of town, in neighborhoods like Steamboat II, Silver Spur, and Heritage Park are still available in the $650-850K range and a new K-8 school is being built there. Hayden, Oak Creek, and Stagecoach that are outside of the Steamboat school district are also much more attainable.
  • 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. A few luxury sales or a change in those can mask what is happening in the main part of this market so we report them as a category of their own.
The Steamboat Group gave over $90,000 back to our valley in 2020 and over $32,000 in 2021 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 at this price point combined with low volumes a few sales can shift the averages considerably.
  • Values of most homes are up 10-15% in the last year but the average price moved dramatically based on 1 of the 5 homes that sold.
  • In 2019 the highest sale was $7.45M vs $11.5M in 2021. The sale in 2021 was a home with most of the value in the land just outside of Steamboat on 470 acres. When comparing these 2 sales, the home in 2020 was 14,000 sq ft and the price was more reflective of the size of the home. In 2021, the $11.5M home was 4,100 sq ft where the value of the sale primarily reflected the 470 acres of land the home was on. This land is the biggest factor that drove the $/sq ft up 58%
  • The average $/sq ft of homes sold increased dramatically due to the sale in 2021 being significantly smaller in size vs the sale in 2020, 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. If we remove those two large sales the $/sf decreased $3 even though the value of every home is up. The number of sales in this segment is so low that when particular homes sell can skew the numbers outside of what is really happening.
We put our clients interests first, have very high standards for our team, invest in modern marketing, and truly work as a team. Fortunately, people noticed and our sales in $ were over 2X per broker than any other Top 5 Steamboat Firm in Q1 2021. Who you chose to work with matters.

Townhomes

  • The average sales price did not change dramatically in the first quarter 2020. Looking at the increase in the median in this case a probably more representative portrayal of the average townhome increase in price in the past year (at +15%)
  • The reason for the smaller increase to the average sales price vs the median was the relative balance of the type of units that sold. In 2020 10 of 21 sales (48%) were over $1M vs. 19 of the 42 sales (45%) in 2021 were over $1M. Included in this were 8 sales in 2021 that were higher than $1.6M (which was the highest sales price in 2020). However, on the opposite end of the spectrum, this was balanced out by significantly more sales under $500k in 2021. In 2020 there were only 4 townhomes that sold under $500k. In 2021 there were 17, including 4 townhomes that sold in Clark that were all under $125k.
  • 7 of these townhomes closed in the first quarter for $400-500K that are a part of a new development called Fox Springs but went under contract earlier and would have sold for a couple steps more now.
  • Townhomes/Duplexes continue to become a more important part of the market from $200K to $2M as Single Family home prices continue to go up. We expect more people to go this way even as low supply compared to demand is limiting sales in this segment.
  • It's worth noting that the average price / sf is similar to 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.
We are proud to have helped 163 people / families in 2020 - 34% more than any other team or agent. We can give you the advantage you need in today’s market.  

Condos

  • Both the number of sales (+53%) and the average price (+59%) were up significantly. The number of sales were a result of increased demand from people who can now spend more time in Steamboat. Average price is a little more complicated in that some of it is appreciation in the range of 15-20% and the rest is that there were many more high end sales and fewer entry level sales.
  • This quarter we saw 4 sales in One Steamboat Place that were all over $2M. In 2020 there were no sales over $1.6M - these 4 increased the average sales price alone $110k (15%). Based on a few conversations, we believe that these owners that sold chose to move to a home and others were happy to find a larger place on the mountain.
  • In Q1 2021 there were 41 sales over $575k. In 2020 there were just 6.
  • For the entry level market there were 5 sales below $225k in 2020 and 0 sales below $225k in 2021 as many properties appreciated out of this price range and locals were more likely to hold onto their homes.
  • This was also a year that people saw the value of being more flexible in what they buy to get here with the limited supply. Condos were a great way to get their foot in the door while they look for the place that fits their long term goals. That said, this is happening across the board from condos to homes.
We are grateful to be chosen by so many of you to help with your needs and look forward to helping you reach your goals in the future.

You can count on us to listen to your goals, share in-depth market knowledge, have an honest conversation of the pros and cons, then put our team to work to help you get where you want to be.

Hayden Homes

  • The Hayden market saw strong appreciation over the past year 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 and we love seeing more young professionals see it as a great place to live.
  • The market continues to progress in Hayden. 60% of the sales in 2021 were at or above the highest sales from 2020. In 2020, the highest sale in Hayden in Q1 was $405,000. In 2021 9 of the 15 sales that closed were at or above $405,000.
  • Under the $405k, there were 7 homes that sold in 2020 and 6 homes that sold in 2021. The story really is that there were more homes for sale and at higher price points including many newer homes.
  • The average bedrooms in the homes that sold were 3.25 in 2020 and 3.4 in 2021. So the homes were just a little bigger, it truly was an increase in the average price point.

Phippsburg /Yampa/Oak Creek Homes

  • Oak Creek has been the most popular area of these 3 over the past year and has accounted for 3 of the 4 sales both years. While this allows for an accurate comparison in types of homes sold, there were only 4 sales. The highest sales price in 2020 was $465k* vs $365k in 2021 with so few sales this isn’t significant since we know that each individual home is worth more than it was a year ago.
  • Similar to Hayden, we anticipate these three areas to increase in popularity as people look for single family homes outside of Steamboat Springs.
  • We love seeing the quality and number of restaurants in Oak Creek continue to increase and always try to eat there when the we are out that way.
  • To give a fair representation of the market, we did not include the sale Q1 2020 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. 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

  • Essentially the entire segment shifted upward. The average price growth in this segment of the market was due to both an increase in the lowest sales price and and increase in the highest sales price. The lowest sale in 2020 was $375k and the highest was $840k. In 2021, the lowest sale was $479k and the highest was $1.2M
  • The $/sq ft increased (+32%) almost the same amount as the average sales price (+36%). The average sq ft of homes sold in 2020 was 2,932 vs 3,002 in 2021.
  • 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