Steamboat Real Estate Market Report by Tom Valicenti
Having been involved in the real estate market and construction market in Steamboat Springs since 1991 I am often asked about our current market in the valley. In the last 2 months I would compare our market to the Dow Jones stock market when it dropped to 6600. We should have all bought stock at 6600 and would have had a nice portfolio at the current value of over 11,000. It is my opinion that we are currently bouncing at the bottom of the market and like the stock market at 6600 we have no where to go but up. I agree with the Sotheby’s corporate position that we should see appreciation of 5% a year for the next 3 to 4 years from current appraised values. It is my belief that Steamboat will fare well compared to other resort towns in that our values are lower than many of the other ski areas and Steamboat is a beautiful place to live with a real working community.
The other component of our market often asked is this a good time to build in Steamboat. The past 18 months has been very slow in the single family construction sector of our economy. Subcontractors will work for far less than their bids from 2 to 4 years ago. They basically will work for wages and little profit margins. I estimate that individuals can build for up to 30% off of prices from 2007. Couple that with much lower costs of building sites and it is evident that it is an excellent time to build in Steamboat. The economic cycle with run it course and the cost to build will rise accordingly. During any economic recession individuals will have opportunities and timing in our market could be excellent to create opportunities.
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