A new president. Embattled U.S. and world financial markets. Government bailouts and stimulus packages. Doomsday predictions. Recovery timelines. As Americans, we are all faced with the most difficult task of sorting through the "noise" of the information age to try and individually comprehend the value of our assets, to figure out what our new economy will look like, and to rationally plan for our financial futures. It is certain that most of our lives and future plans will change (or have already changed). What is less certain is to what extent the constantly-changing U.S. economy will affect Steamboat's real estate market in the coming months and years.
Coming off of Steamboat's all-time record year of 2007 where average prices, unit volume and dollar volume all showed gains of over 30% (with over $1.5 Billion in closed sales), 2008 total volume through the third quarter saw a decline of nearly 50% when compared to 2007 levels, returning to volume levels similar to 2005 and 2006. Largely due to the decrease in volume, inventory levels have grown just over 40%, creating more choice for buyers in land, condominiums and homes. Interestingly, increased supply generally leads to lower average sales prices, but through the third quarter of 2008, sales prices did not show dramatic changes from 2007 levels as one might predict. What does this mean to Buyers and Sellers? Buyers have more options than in past years; Sellers need to price their properties competitively and exercise more patience than in past markets.
The question of how Steamboat's market will ultimately be affected by national and international events is still uncertain. What is certain is that Steamboat's local market, although part of the larger U.S. economy, acts and reacts on a different set of rules and a different timetable than most other real estate markets. Now, more than ever, it is important to have timely, expert real estate advice as we all learn to navigate our way through a new path with ever-changing rules. With over 25 years in business and over 5,000 closed transactions, we are your local experts! Give us a call today at 970-879-7800 or visit us online at www.SteamboatVillageBrokers.com.
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