$17M+ Sale Jumpstarts Steamboat Springs’ 2012 Real Estate Year

Steamboat Springs’ January 2012 real estate sales started off on a positive note coming in just ahead of January 2011 sales. A good start is always welcome, and with the snowfall finally taking Steamboat Springs literally by storm this week, things might just be looking up on all fronts!

While local businesses were soft in January due to the minimal snowfall, the recent snowy weather has business owners across the resort market spectrum optimstic about stronger business through March. Reservations immediately picked up for the balance of the ski season as soon as news of our epic, record snowfall on Monday, February 20th  -  27 inches in one day – hit the news.

Highlights from the January 2012 Real Estate Report

• Sales Volume at $42,660,000 was 1.43% above January 2011.
• The number of transactions (66) was down 51.47% vs. January 2011, driven by a large decrease in Fractional sales which numbered 78 in January ’11 versus only 13 in January ’12.
• There were 14 Bank Sales that accounted for just over 5.5% of the overall sales, down from 18 Bank Sales in December and 15 in November.
• 64% of Residential Improved Unit Sales were under $300K and 85% were under $500K continuing the trend of entry level price points dominating the Steamboat Springs’ market in 2011.
• South  Routt County had the highest share of Dollar Volume as a result of one very large $17M plus sale outlined below.
• The Mountain Area, usually top in sales dollar and transaction volume, came in second in dollar volume share at just over $6.2M, but did maintain the top spot in number of sales transactions with 20.
• There were 6 total sales over $1M with 3 of these sales being over $3M.

Highest Priced Sale for January 2012:

1/18/2012 $17,650,000 M&B: Section 21,22,27,28-5-84 aka Yampa Tailwaters.  This is a Development parcel that has three residential improvements with a total of 3,462 SF Living Area – 6 Bedrooms and 3 Baths.  YOC 1951.  There are also 13 ranch outbuildings on the site totaling: 7,716 in Square Footage.  The total acreage is: 514.82 AC.  It is located in theSouthRouttCountyarea at:31370 State Highway #131

Highest PPSF’s for January 2012:  (two listed since the first one has a land-value factor)

1/27/2012 $800,000 Metes &Bounds in Sec 12-6-88 aka11505 US Highway #40–2 Bedroom 1 Bath YOC 1925 with 1,280 SF Living Area on 295.00 AC.  This property is located in the Hayden area.  PPSF is $625.00.

1/30/2012$693,500 in Howelson Place Condo Unit B301 aka703 Lincoln Avenue, B301 – 2 Bedroom 2 Bath YOC 2008 with 1,131 SF Living Area.  This is a new construction unit located in Downtown.  PPSF is $613.17.

—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

Entry Level Price Points Dominate Steamboat Springs 2011 Sales

Steamboat Springs’  2011 real estate market  was ripe with investment opportunities as it was dominated by sales of homes priced under $200,000. Condominiums made up most of these sales, and now that these bargains are off the Steamboat Springs market, there’s not much inventory at the lower price points as compared to last year. Here’s a Steamboat Springs real estate snapshot by the numbers:

• Homes priced below $200,000 comprised 36% of 2011 sales
• 26 condos sold in 2011 for less than $100,000 (of these, 16 were bank owned)
• 45 condos sold for prices between $100,000 and $200,000 in 2011
• 52% of 2011 Steamboat Springs’ sales transactions were for less than $300K
• Currently only 9 condos are listed on the market priced less than $100K and only 39 condos on the market reside in the $100K-$200K price range

Steamboat Springs’ low end supply has dwindled – but it remains uncertain as to whether that will equate to an increase in the lower end price base. Privately owned homes had to compete with a good percentage of bank owned sales last year and that drove prices down. Steamboat Springs’ shadow inventory, homes that are still in the bank-owned system that haven’t hit the market yet, is an overhanging question mark. If there is significant shadow inventory still remaining, it could keep Steamboat’s prices low as those homes cycle through the banking system and hit the market throughout 2012. Conversely, if the banks have run through their low end inventory and demand starts outpacing the supply of privately owned homes, then Steamboat Springs’ home owners will have more confidence as well as the leverage to ask for (and get) higher prices.

One final note about the entire piece of the Steamboat Springs’ 2011 real estate sales pie, with 52% of 2011 sales being homes less than $300K, the share of sales was taken from the middle range price points, those priced from $300K to $800K. Homes priced from $800K to $3M+ have seen very little change as a percentage of transactions from 2007 to 2011.

Steamboat Springs real estate has always been and will continue to be a great value buy. Whether buyers will continue to have ample options to purchase Steamboat Springs real estate for under $200K remains to be seen. The economic laws of supply and demand would indicate that perhaps the Steamboat Springs real estate market is about to see a lower end price adjustment to where private home owners won’t have their home prices held hostage to bank owned home prices.

—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

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