No Cookie Cutter Pricing in Steamboat Springs Real Estate

As a recent article in the Wall Street Journal  pointed out, “It’s not easy being a home builder these days.” That’s a logical conclusion to come by given that:
* Total home sales are at record lows
* Foreclosure prices are luring potential new-home buyers away
* People often can’t qualify for loans despite low mortgage rates

Even Census Bureau data points to a ‘New Normal’ for new single-family home prices.

Rick Palacios, a senior analyst at John Burns Real Estate Consulting, pointed out that since new-home prices peaked in 2007, new single family sales of more than $500,000 have gone from 13% to 6% of the market. Sales of new homes priced under $300,000 now account for roughly 75% of all new single-family sales. Buyers want affordable homes and what people can afford on average has gone down.

Looking at 2011 existing home sales in Steamboat Springs, entry level price points dominate the share of sales. But be careful because these numbers can be misleading; most of these sales were comprised of condominiums and were in fact second or vacation homes, not primary residences. And yes, this data focused on existing, not new home sales. But affordable is affordable…new, old or in-between.

Real estate is indeed local, and while Steamboat Springs has had its share of foreclosure sales, there continues to be demand for luxury primary and secondary homes.

Have it Your Way – Made to Order Mortgage Loans

According to a recent article in the New York Times, “Loan Terms Made to Order” are more common than you’d think. You can get creative with mortgage loan terms if you know what to ask for and you have a length of time in mind. More borrowers are asking for and getting fixed rate loans with terms outside the standard 15 and 30 years; these custom mortgages are prevalent in refinancings.

In 2011, nearly 17% of all refinanced mortgages were comprised of “other length” fixed rate loans according to the Mortgage Bankers Association. Most of these terms were for 20 years, but 10, 25 and 40 years were not unheard of and if you do your homework, you’ll even find lenders who will agree to “oddball” terms like 16 or 7 years.

Fees could be higher for oddball terms like 16 or 7 years, but if you have a reason, like kids graduating  in 7 years or retirement planned for 16 years from now, and you want to peg your mortgage term to those time-frames, then by all means search for a lender to accommodate you because they are out there.

In addition, option-arm mortgage loans are still a viable choice for many people, and can save the day in unexpected ways as I outlined in this blog at the end of last year. As with any financial decision, ask your mortgage professional to compare payments, interest rates etc. for different scenarios and then bring in your financial planner to ensure your other financial goals will work with a proposed change in mortgage payments.

The important thing is not to assume it can’t be done, because while many people don’t realize it, the 20 year mortgage is now quite a common alternative to 30 and 15 year mortgages for those who know to inquire about it.

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

Thanks,

Charlie

Steamboat Springs’ 2011 Real Estate Numbers Leave Room for Improvement

Steamboat Springs’ real estate market did not earn great marks in the recent Colorado Mountain Resort Real Estate Trends released by Land Title Guarantee Co. As compared to 5 other Colorado ski resort counties, Routt County, home to Steamboat Springs, is the only county that decreased 6% or more on 5 key benchmarks* in 2011 as compared to 2010:

• Gross Sales Volume: -12.01% (Eagle & Grand Counties were down >6% as well)
• Number of Transactions*: -23.06% (All other counties were flat to up
• Single Family Average Home Prices: -22.73% (Eagle & Garfield Counties were down >6% as well
• Multi Family Average Home Prices: -33.52% (Eagle, Garfield & Summit Counties were down >6% as well)
• New Development: -52.51% (Eagle, Garfield & Summit Counties were down >6% as well

* For Routt County specifically, there was a high number of fractional sales transactions in 2010 vs. 2011, so if you net out fractional transactions and compare improved units sales transactions only for 2010 vs 2011, Routt county is actually up almost17%.

Steamboat Springs’ Routt County real estate market historically has been most comparable to Summit County, home to Breckenridge, Keystone and Copper Mountain ski resorts. In 2007’s real estate market peak, Routt County/Steamboat Springs reported $1.58 billion in sales while Summit County earned $1.63 billion in sales. Fast forward to 2011, and there is a much wider gap in real estate performance on key metrics:

2011 Sales Dollar Volume
Routt County, Steamboat Springs = $450.6M (-12.01% versus 2010)
Summit County = $684.2M (-2.03% versus 2010)

2011 Single Family Homes Average Price Per Square Foot
Routt County, Steamboat Springs = $229.35 (-17.77% versus 2010)
Summit County = $252.68 (-6.11% versus 2010)

2011 Single Family Home Average Price
Routt County, Steamboat Springs = $631,224 (-22.73% versus 2010)
Summit County = $734,262 (-4.74% versus 2010)

While these 2011 year end numbers are certainly not good news for Steamboat Springs when compared to short term history, what they do point to is the potential for great improvement in the Steamboat Springs real estate market as we move into 2012. Reasons for optimism include: new jobs in the coal mining industry, lower inventory than we’ve seen in a while and aggressive sales and development plans for some key real estate projects. And for Buyers, Steamboat Springs is an incredible value right now, but inventory is decreasing  in some key price segments. It remains to be seen how  long it’ll be before the supply/demand equation tips the scale to increasing prices in some of the more sought after price segments.  

As I’ve stated before, the real estate market is local, and Steamboat Springs is not on the I-70 corridor which captures the majority of Denver visitors, a real estate market that has rebounded already. Steamboat Springs pulls a good portion of its buyers from out-of-state feeder markets many of whom have not had economic rebounds as yet. While poised for growth, the Steamboat Springs real estate market is somewhat more dependent on the national economic recovery and the availability of affordable mortgage financing for second/vacation homes than some of the Colorado ski resort counties we benchmark ourselves against.

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

Thanks,

Charlie

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

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

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

Halloween is always a community wide celebration in Steamboat Springs, but the real estate community was celebrating too. Five million dollar plus properties closed between October 31^st and November 1^st. While probably not a new high-end sales trend, the closings are indicative of buyers wanting to get in before winter and snow arrive.

In other positive Steamboat Springs’ real estate news, October saw 5 new construction projects in The Sanctuary either started or approved to start next year, while two homes are under construction in Boulder Ridge and one is being built on Ridge Road. These projects are a breath of fresh winter air for a construction market that hasn’t seen much recent activity. 

Finally, since everything happens in threes or so they have recently, multiple offers have been received in the past few weeks on entry level homes and not just bank-owned residences. Entry level homes have seen a lot of action in the Steamboat Springs real estate market this year. Through September (year-to-date third quarter) sales of residences below $300,000 account for 49% of all the residential transactions.

So as the snow heads to Steamboat Springs, and the final two week countdown begins for the opening of the ski mountain, there is some positive momentum brewing in the Steamboat Springs real estate market. Will it stay – hopefully yes, and hopefully like the snow on the horizon, it’ll stick around for quite a while now that it’s here.

—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

Mixed Report in September Routt County Real Estate Market

As fall entered full swing, the Steamboat Springs’ real estate market continued its swing along its own bumpy ride with the number of transactions totaling the second highest all year at 140, but with gross dollar volume just over $35 million which only ranks 5^th year to date with 9 months down. That makes sense when you dig deeper into residential home sales and see that 34% of them in September were for homes under $200,000.

As September turned to October and mud season follows, we’ll see less real estate activity, and as you’d expect, January sales historically trend low with fewer ‘Under Contracts’ or ‘Pendings’ going on the books the last quarter of the year. But with the bad bounce, comes the good bounce: Steamboat Springs’ ski season is right around the corner. Three ski resorts have opened already, and as always this time of year, there’s winter excitement in the air. With all the Steamboat mountain area base improvements, and the impressive #8 ski resort ranking, we’re looking optimistically ahead and doing our best to ignore the bumps along the way.  

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

Steamboat Springs Market Report September 2011

* 7 transactions over $1M with the top 2 being from buyers residing in Texas and Illinois.

* 18 bank sales up only 1 from last month.

* The Mountain Area ranked #1 in sales volume at 22% of the Total Sales Volume, while Timeshare & Interval Unit Sales held the top number of transactions with 52.14% of the month’s 140 Total Transactions.

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

Highest priced sale for September 2011:

9/2/2011 $3,900,000, Dakota Ridge Sub 31665 Aspen Ridge Road – 5 Bedroom 5.5 Bath YOC 2008 with 7,654 SF Living Area on 5.3 AC Land.  PPSF is $509.54. This is a new construction sale located in the South Routt County Area.

Highest PPSF sale for September 2011:

9/29/2011 $665,000, 30750 County Road – 2 Bedroom 2 Bath YOC 1999 with 1,014 SF Living Area on 35.38 AC Land.  PPSF is $655.82.  NOTE: This PPSF is slightly misleading because there is also a 5,700 SF Barn located on site, and a 1,200 SF Utility shed that are not included in the living area sizing.  This sale is located in the South Routt County Area. (The second highest PPSF is the above Dakota Ridge Sale)

—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