Over the last year, it has been difficult to avoid the press coverage about the negative trends and lagging real estate markets in most areas of the country. With many U.S. markets experiencing rising foreclosure rates, drops in property values in excess of 10% and problems with oversupply of inventory, there has been little good news in the "national" real estate market over the last 12-18 months. Steamboat's real estate market, in contrast to the national market, has been filled with good news.
Consider the following positive trends . . . for the first time in history our market topped $1.5 Billion in total sales for 2007 with dollar volume, unit volume and average price per unit all up an average of over 30%! While the total sales volume in 2007 set an all-time record, this year it is likely to return to levels similar to those seen in 2006 (approximately $1 Billion). Prices are still showing healthy increases in the first quarter of 2008 compared to 2007 (up 4-26%) depending on category and price band. In short, prices in all categories - condominiums, homes, lots and acreages - are still climbing.
Steamboat continues to prove itself as a very stable market. Although 1st quarter 2008 statistics show a decrease in total dollar volume compared to the same record quarter in 2007, the numbers are similar to 2006 volume levels. The result of slowing volume and solid prices has led to increased inventory in homes and condominiums, which is good news for buyers. Why? Buyers now have more choices than they did in 2007 when certain types of properties were in very short supply, or simply not available.
With more inventory now becoming available, sellers who price properties based on actual comparative sales within their respective category and price band will be best poised to attract the buyers who have been waiting for more diverse choices at competitive prices. New development projects combined with more balanced inventories are offering buyers solid value with strong historical basis for future growth from an investment perspective.
As local market forces begin to shift slightly in 2008, careful analysis and up-to-date information is more important than ever to both buyers and sellers as they seek out opportunities in Steamboat's increasingly complex and ever-changing market. It is clear that the Yampa Valley real estate market has not and likely will not follow national trends, so expertise within the market will be critical to continued success of individual investors.
If you have any thoughts or questions regarding the market here in Steamboat Springs, please feel free to email me at dbaldinger@steamboatvillagebrokers.com or call me at the office at (970) 879-7800 ext. 103. I will be glad to help.
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