The snow banks might not have been high around Steamboat Springs at the end of 2011, but the Steamboat Springs real estate market ended the year on an overall positive note. In hindsight, the real estate market in Steamboat Springs is still trying to achieve sure footing on what has been a slippery slope throughout 2011, but there are some positive signs where a year ago we were not seeing much to be optimistic about. While some price points are doing well, others are struggling, and bank owned sales are driving actual dollar volumes down overall. So what does it all mean? While there are signs of reasons to be optimistic, there are some critical factors involved that will keep the market on its proverbial toes:

• the number of foreclosures poised to hit the market that haven’t yet (shadow inventory)
• the unemployment rate both here in Steamboat and in feeder markets where many second home buyers come from
• the ease (or lack thereof) of getting financing – there are strict requirements for obtaining second home financing, and as long as they are in place, it’s a deterrent

Snow Making at Steamboat’s Howelsen Hill

Factors (like snowfall) over which we have no day-to-day control over will continue to play important roles in how quickly we see sustained real estate improvements in Steamboat Springs. In the meantime, here’s a recap of how we ended 2011 which is something to take a moment to be thankful for before turning to 2012, and starting a new year with a fresh perspective.

136 December transactions brought in just over $47M in sales volume. December 2011 transactions were up 72.15% over December ’10 transactions, but at $47M in sales we were down 13.19% versus December 2010.

Year end comparisons of 2011 versus 2010 are a little disappointing, but are driven in large part by the 3 macro economic factors listed above:

• 2011 ended with a total of just under $450.6M in sales,  down 12.01% from 2010 year end
• 2011 total transactions numbered 1398, down 23.06% from 2010 year end numbers

On a positive note, inventory is down which means those homes still on the market will have greater value to prospective buyers who desire to liveSki TownUSA.

December 2011 Routt County Real Estate Report

Highlights of the December ’11 Real Estate Report

• 12 transactions were $1M plus
• Bank Sales were back up at 18 after being at 15 in November and only 6 in October
• The Mountain Area continued its sales and transaction dominance with 27.2% of the month’s transactions (37) and 50.3% of the month’s sales volume ($23.7M)

Highest Price Per Square Foot (PPSF) Sale for December 2011:

12/30/2011: $2,825,000 Edgemont Condo Unit 2803 aka2410 Ski Trail Lane, #2803–5 Bedroom 5 Bath YOC 2009 with 3,642 SF Living Area.  PPSF is $775.67.  This is a new construction sale onSteamboatMountain.

Highest Priced Sale for December 2011:

12/29/2011: $4,500,000 City South Subdivision Lot 1, Mid Valley Business Center #2Lot2, M&B: Sec 20-6-84 – 3 Commercial Parcels:  All Vacant Commercially zoned, with a combined land size of 14.52 AC.  This property is located at1440 Pine Grove Road.  PPAC is $309,917.  This was a Bank Sale. 

Other December Sales over $1.4M:

12/28/2011 $2,050,000 Sanctuary Subdivision #5 Lot 132 Re-plat aka 3050 Clearwater Trail –  4 Bedroom 4.5 Bath YOC 2006 with 5,808 SF Living Area on 1.48 AC Land.  PPSF is $352.96.

12/14/2011: $1,425,000 Big Valley Ranch at Steamboat Subdivision #2ALot25 aka28880 Skyline Drive– 3 Bedroom 3.5 Bath YOC 1992 with 4,636 SF Living Area on 36.10 AC Land. PPSF is $307.38

—For more information on buying real estate or questions regarding Steamboat Springs real estate or renting a home in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie

No snow over the Christmas holiday is bad news for the Steamboat Springs Ski Mountain, but at least the snow making machines have been able to compensate with the man-made stuff and turned what could be really bad into something passable. If only there was some magic wand to wave over the housing market so things would start to pick up and stay up. The Case-Shiller October Home Price Index is not showing any news we can feel good about on a national level. The October report yields the following less than optimistic news:

* 19 of 20 cities showed home price decreases versus September numbers

* Versus October 2010, the 10 and 20 city composites posted annual returns of minus 3.0% and -3.4% respectively

* Versus September 2011, the 10 and 20 city composites were down 1.1% and 1.2% respectively

* Four markets (Atlanta, Cleveland, Detroit, Las Vegas) show prices below their January 2000 levels, while Atlanta and Las Vegas posted new lows in October

* Both the 10 & 20 city composites are barely above their all-time lows and from their peaks, the 10 city composite is down 31.9%, and the 20 city composite is down 32.1%

There is a caveat: real estate is local, and the Steamboat Springs market just posted some strong November numbers. Other areas where the local news is better include:

• * Detroit which while still below January 2000 levels, is up 2.5% over October 2010
• * Washington DC up 1.3% over October 2010
• * Phoenix which is up .3% vs. September 2011 (after 3 straight declining months) 

While the national numbers are bleak, there is rationale for the dismal report which at least helps us understand the dynamics in play:

* there continues to be a weak labor market

* high foreclosure rates in many areas are keeping home prices depressed

* fall is typically a slow sales period for homes after the busier late spring and summer months

* loan qualifications are rigorous and higher down payments are required by most banks

* would-be buyers lack confidence that the housing market has bottomed out, so they are waiting it out

Given 2012 is literally just around the corner, and it’s an election year as well, there will be many economic trends and political maneuvers to watch as we turn the calendar page. While we may remain on the roller coaster for a while, it’s my hope that everyone stays on for the ride because there are great values to be found, and like the snow that’s inevitable in Steamboat, the market turn-around will happen, and not a moment too soon.

—For more information on buying real estate or questions regarding Steamboat Springs real estate or renting a home in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie

For those who were seeing the glass half empty as mud season rolled into November, there was definitely more to be thankful for than family, friends, football and turkey on the horizon. What we lacked in snow fall, we made up for in real estate sales in November. November real estate sales were great. And looking at the recent absorption rate, I’d say the Steamboat Springs Real Estate Market is looking much better.

( Please note: I recently blogged about the attributes of “knowing the market.” The stats came out today with a rather large error. I caught it and researched it. There was not a $11 million dollar transaction in Steamboat. So I re-calculated the numbers with a more accurate sales price. The graph below is with the corrected amount – see *)

125 transactions netted just under $44M * in gross sales volume which equals a 64% increase in gross sales over November 2010. In a year full of negative comparisons, this huge increase versus last November has narrowed the year-to-date gap in sales volume to under -10%. The number of transactions year-to-date is down 27% versus last year, but up 34% from last November.

Dare we say that Tim Tebow’s (Denver Bronco’s QB) magic might be rubbing off on real estate sales in Steamboat Springs? Sometimes you just have to believe that value is appreciated, and we sure have a lot to offer here in beautiful Steamboat Springs! So our 4^th quarter is shaping up to be potentially “Tebow-like” here in the Yampa Valley.

As the ski mountain opened on November 23^rd with the annual SSWSC Scholarship Day fund raiser, the community began coming to life with the start of the ski season. With only weeks until Christmas, the snow finally starting to fall, hotels and condos filling up and the ski mountain opening up new lifts and runs “the season” is upon us!

View entire NOVEMBER Real Estate Report – but remember the $11 Million sale is wrong

Highlights from November Routt County Real Estate Report

* 11 transactions were $1M plus.

* Bank sales were up from October (6) with 15, but still down from September (18) and August (17).

* The Mountain Area still ranked #1 in Sales Volume and number of Sales Transactions (net of time-share/interval sales) with $20.4M in Mountain Area sales comprised of 36 transactions.

The Highest Priced Sale and Price Per Square Foot (PPSF) for November 2011

11/21/2011 $4.200,000 (estimated) Catamount Ranch Subdivision Lot 8 aka 33800 Catamount Drive – 5 Bedroom 10 Bath YOC 2000 with 10,358 SF Living Area on 7.04 AC Land.

Sales over $1.5M in November 2011

11/29/2011 $2,475,000 Robbins Subdivision Lot 117 aka 0674 Steamboat Boulevard – 5 Bedroom 6 Bath YOC 2007 with 7,305 SF Living Area on .60 AC Land.  PPSF is $338.81.

—For more information on buying real estate or questions regarding the  Steamboat Springs MLS in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie

A friend of mine reminded me of a great business practice the other day when she told me about her experience listing her town home in a down market with lots of town home inventory in a suburb of Atlanta back on 2004. In her development alone there were 200 town homes all under 3 years old, and 72 were for sale at the time she was looking to sell. That’s 36% (more than one out of 3 for sale), and many newer developments already built (but unsold) with developer incentive deals in the competitive mix as well.

The fairly daunting scenario was not lost on my friend as she had been around the home selling/buying block more than once before. Her real estate agent met with her, and after seeing some hesitancy in agreeing to a realistic price for the current market – not an outright “no”, but more an attitude of disbelief that she’d have to go ”that low”, her real estate agent outlined the perfect next step.

“Give me 2 hours this weekend to show you what you’re up against in your own development, and then if you want to see any more competition in a 1 mile radius, we can follow up with that,” requested her agent. Understanding that a home sale is an important financial decision, my friend agreed, and her agent proceeded to set up appointments to see 20 of the 72 town homes listed within the boundaries of her development the next Saturday.

Needless to say, it was time well spent. She realized not only what she was up against price wise, but also model layout wise. Her town home had been in Phase 2, and Phases 3 & 4 definitely incorporated improvements and upgrades. She didn’t need to go outside the confines of her development to get any more comps.

 Long story short, she did the following:

* priced her town home correctly

* got an offer under that price within 3 months

* considered the differential in mortgage payments vs. the lower than desired offer if she kept her place on the market

* determined that she might not get another offer within 3 months which was the break-even month, when selling now would start paying off assuming she got a full asking price offer 3 months from now, which was unlikely she knew

* accepted the offer

* closed the following month breaking even despite a really challenging market

What did it take to sell a very “standard” town home when so many factors were seemingly working against a sale, let alone a quick sale?

* a realistic real estate agent who was willing to take her time to go through an exercise to educate a client

* a real estate agent who took control of the situation before the pricing battle was lost, and the town home was listed at an inflated price

* a receptive seller who was willing to keep an open mind and do her due diligence

* a logical seller who took the emotion out of it and “ran the numbers” so to speak first in pricing her town home, and then in accepting an offer under her asking price

Do all these factors always exist and converge into a success story? Of course not, but as real estate agents we should take the proactive approach, communicate honestly from a position of confidence, set realistic expectations and guide our clients as best we can to the best possible outcome given the agreed upon desired result.

—For more information on buying real estate or questions regarding Steamboat Springs real estate or renting a home in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie

When someone tells you that a local real estate agent posted a great blog, you might be surprised that it’s not a blog on real estate market trends or simply straight listing information copied and pasted from a marketing brochure. Good real estate agents  realize that when people look for a home, they are looking for more than square footage, they are looking for a lifestyle to compliment their perfect home. From schools to shopping to annual, holiday and special events, a community is comprised of day to day opportunities that add to your overall quality of life and get you out of the home you and your realtor so carefully selected for you.

It’s my goal to inform potential clients (or remind current ones) of just how awesome it is to live in Steamboat Springs, CO. If someone is contemplating buying a primary or secondary residence in Steamboat Springs, I want them to know that Steamboat Springs is not just a fabulous, world-class ski resort, it’s a full-fledged community with homecoming parades, July 4^th celebrations, summer concerts, neighborhood garage sales and Halloween celebrations. It’s my intention to let people know that buying a home in Steamboat Springs is buying into a healthy, outdoor focused year-round lifestyle that they’ll be able to enjoy part-time, full-time or for any amount of time they decide to spend in our beautiful Rocky Mountain Yampa Valley.

As we head into the heart of the holiday and ski seasons, I’ll be focusing my communications on why Steamboat Springs is the perfect place to call home. Those of us who live here know it’s an amazing community, and I’d like to share how we spend our days and nights in a town three hours from Denver that is snow covered from November through May. If anyone would like to join us here on a permanent or part time basis, we have plenty of wonderful homes, condos and time shares available, and I’ll be happy to show them to you as well as tell you about Winter Carnival, the lighted man, the Valentine’s Day torch parade and the Steamboat Springs Winter Sports Club – which gets us  through April…and it doesn’t stop there. Stay tuned for hiking, biking, fishing, camping and more as spring turns to summer in Steamboat Springs.

For Sale:  ½ acre waterfront lot on the trout laden Yampa river in heart of Steamboat Springs, Colorado. Sounds great right?  Soothing sounds of the river and trout fishing right in your back yard. One of the last remaining riverfront lots within the city limits of Steamboat Springs. Supply and demand might place the value of this lot to over half a million dollars. But given a fairly recent change in national building codes, this riverfront lot value is cut in half.  That’s right, $275,000 for riverfront property.   But thanks to some brainstorming of local Realtor Charlie Dresen and local architect and builder, Jeff Gerber and Hans Berend of Gerber / Berend Design Build, this riverfront lot could be the buy of the year.

Fallingwater comes to mind when I think of this lot. This Frank Lloyd Wright single family home has been an inspiration for decades and this inspiration can translate into the Steamboat lot.   The restrictions that limit the building according to Steamboats and Routt county building department, also allow for cantilever construction. And Fallingwater, a Frank Lloyd Wright masterpiece has some cantilever construction and running water.  I’m not saying you can build a home over the Yampa river or cast to rising trout off your back deck, but you can extend closer to the river than what the FEMA Floodway restricts.

Back in 2005, after Hurricane Katrina, FEMA made an assessment that they need to impose building restrictions on all water ways in the United States. So even though FEMA has never set foot on this waterfront lot in Steamboat, Colorado, they designate where one can and cannot build. Hence, one is restricted from building a home too close to the river.  Many who have looked at the lot do not like these restrictions and see this as a problem. And I don’t blame them. But as a realtor in Steamboat Springs, I come up with solutions. Thus, utilizing a cantilever building technique that at the right elevation, can extend over the FEMA floodway, you will have river views, river sounds, and a really cool home in Steamboat Springs, Colorado and some of the best trout fishing in Colorado.

Here’s some idea of a great home.

As 2011 winds down, it’s worth noting that one of Steamboat Springs’ most popular neighborhoods, Fish Creek Falls, has had a really good year real estate sales wise. Just in the last 2 months, 12 single family and townhomes have sold. Since January 1^st, 28 Fish Creek Falls’ neighborhood homes have sold with an average sales price of $814,035. Even more encouraging, the average sales price was 97.8% of the average list price which strongly indicates that Steamboat Springs’ Fish Creek Falls neighborhood is a good buy in a very attractive neighborhood.

Situated between Steamboat Springs’ downtown area and the ski mountain, Fish Creek Falls neighborhood is in close proximity to everything Steamboat Springs has to offer including schools. A trail system runs through Fish Creek Falls neighborhood that will get you anywhere if traveling by car is not an option, or you simply want a little more exercise. While a variety of home styles are available, the majority of Fish Creek Falls’ neighborhood homes are family homes with attached garages and yards for kids and pets to play in.

Look no further than the Fish Creek Falls neighborhood if what you’re looking for in a home is a convenient location, long term value, a child and pet friendly environment, and plenty of architectural options to choose from.

—For more information on buying real estate or questions regarding Steamboat Springs real estate or renting a home in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie

Even those that are usually the glass half-full type would have to tip the glass to see it half full in the latest September Case-Shiller Price Index report. The latest report, tracking through September, showed a drop in prices in 17 of 20 cities tracked versus August halting a 5 straight month upswing when at least half the surveyed cities showed monthly gains.

Three cities fell to their lowest home prices since the housing crisis began 4 years ago:

* Atlanta

* Las Vegas

* Phoenix

On the flipside, three cities showed price increases in September:

* New York

* Portland

* Washington DC

While logic would say that the lowest mortgage rates in history and very affordable home prices overall would lift demand (and thus prices) above the stormy waters, these positive factors are clearly overshadowed by the negative impact high unemployment and weak job growth have had on the psyche of would-be home buyers. Simply stated, a stronger economic outlook is needed to restore confidence and incent Americans to get off the fence when it comes to real estate.

A separate index looking at 2011 third quarter home price index levels vs. second quarter showed only a slight 0.1% increase in the third quarter. Nationally, home prices are back to their first quarter 2003 levels.

Finally, just to get it on the table: home prices are sure to fall again once banks start catching up on foreclosures that have been delayed due to the government investigation into mortgage lending practices. If there is a silver lining in the current dark clouds it’s that we should all now realize that while the housing market downturn will not be a quick fix, there will be prices out there that will entice those with good credit and stable jobs to start testing the home-buying waters. As with any turn-around, you have to start somewhere and build from there.

—For more information on buying real estate or questions regarding Steamboat Springs real estate or renting a home in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie

Sweet! You have 473 Facebook friends. You are definitely well liked and dialed in. But now that ski season is just around the corner, those Facebook friends start calling you about coming for a Steamboat Springs’ ski vacation in your second home. Research indicates that a typical second home owner only spends 39 nights a year in their vacation home which leaves 326 days “free”…unless friends want to come while you’re there, which is a whole new issue.

As a vacation home owner, you need to decide early on if you’re going to be in one of two groups: 1) the friend who sets limits, boundaries, rules 2) the friend who is the martyr.

The Owner with House Rules:

* Doesn’t hesitate to tell acquaintances it’s for family only or simply not available

*  Asks guests to chip in and cover costs for cleaning, maintenance, food, etc.

* Charges friends a rental fee to cover utilities, mortgage payments, insurance, etc.

*  Has a list of house rules in plain sight (sometimes in multiple places), and sticks to them

The Martyr Second Home Owner:

* Hands over the keys to friends repeatedly even when left with damage requiring repairs upon their departure

* Agrees to visitors while in the home too and then stocks the kitchen and offers shuttle service

* Feels badly about asking for a nominal rental fee, let alone saying no altogether

* Doesn’t know how to say “no” when friends want to invite additional friends because ‘there’s still one more bedroom available’

If you think this doesn’t affect many people, think again. According to the National Association of Realtors (NAR) vacation homes are being purchased at a rapid rate given the real estate market is depressed in many resort areas. Here’s what NAR reports from 2010 data:

* 10% of 2010 home purchases were vacation homes

* There are 7.9 million vacation homes in the United States

* Of 2010 vacation homes purchased: 36% were in the South, 27% were in the West, 19% in Northeast, 15% in Midwest and 3% were outside the U.S.

* 19% of vacation homes purchased were in resort areas

Before you purchase a second home, consider how you’re going to handle the inevitable “can I come stay” questions, and rest assured that even folks you haven’t heard from in years won’t mind asking the question. You might find yourself editing down the amount of Facebook friends or posting less about how great the skiing was in Steamboat Springs, Colorado. Or you can always suggest these homes for your friends to purchase – so you can offer up a vacation home swap in the future!

—For more information on buying real estate or questions regarding Steamboat Springs real estate or renting a home in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie

October was only a little stuck in the mud season muck, but that’s not totally unexpected in the bi-annual shoulder season. There were some encouraging sales as some folks do like to get settled in to a new home before the winter weather sets in.

With 99 transactions logged in the 10^th month of the year, October ranked 7^th in transactions and 8^th in total dollar volume with just over $31.6M in sales. Similar to September, dollar volume was down due to the large percentage of residential homes sold under $200,000 (35%) as well as 68% (more than two out of 3 homes) selling for $500,000 or less during the month of October. 

The bright spots while analyzing this report, are that the snow making machines are going full blast on Steamboat’s ski mountain and opening day is less than 2 weeks away…which means that soon Steamboat Springs will be full of skiers and winter loving vacationers.  Mud season always comes and mud season always goes…ushering in either a fabulous winter or a spectacular summer. “Fabulous” is on the horizon for sure. Mountain base improvements, revived financial backing at One Steamboat Place & Trailhead Lodge, new restaurant openings in Wildhorse Marketplace and a total remodel of The Cabin in The Steamboat Grand are a few of the pleasant surprises awaiting visitors and available year-round for residents.

Highlights from the Routt County/Steamboat Springs’ October Real Estate Sales Report include: 

* 8 transactions over $1M, three of these were over $2M and one was over $3M. There have only been four total $3M+ sales all year.

* Bank sales were significantly down with 6 in October versus 18 in September and 17 in August.

* The Mountain Area ranked #1 in $ Sales Volume as well as the number of Sales Transactions (net of time-share/interval sales) with just over $12M in Mountain Area sales comprising 27 total transactions.

The highest priced sale and the highest price per square foot sale for October 2011 were as follows:

Highest Priced Sale for October 2011

10/27/2011 $3,375,000 Agate Creek Preserve Subdivision Lot 1 aka 35375 Humble Road – 5 Bedroom 5.5 Bath YOC 2004 with 8,137 SF Living Area.  7.57 AC Land Area.  PPSF $414.77.

 Highest PPSF for October 2011:

10/6/2011 $2,030,000 OSP Condo @ Après Ski Way Condo Unit R-418 aka 2250 Après Ski Way – 4 Bedroom 4 Bath with 2,420 SF Living Area.  PPSF is $838.84.  This is a new construction sale that is located in the Steamboat Mountain Area.

—For more information on buying real estate or questions regarding Steamboat Springs real estate or renting a home in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie