There’s no question that heading into 2018, the Steamboat market is healthy and only getting stronger as major market trends point to double-digit growth in transaction and dollar volume. With a demand that clearly outweighs the supply, the market shows no signs of slowing down. As new construction and renovation projects are on the rise, even more encouraging is that appreciation of existing residential homes is the strongest it’s been in recent years, a sign that the Steamboat economy is healthy overall.
We gathered some data from Doug Labor, Broker and Manager at Steamboat Sotheby’s International Realty, then caught up with David Baldinger Jr., Steamboat Sotheby’s International Realty Owner/Broker to take a look back at the market trends in 2017 and to find out what they mean for the outlook as we head into 2018.
Total transactions and dollar volume are up.
“The most compelling trend of 2017 compared to 2016 was seeing that our transaction volume, or the total number of closed transactions, went up about 14%, which is a really good sign,” Baldinger Jr. says. “It’s a similar trend from the previous year, but it didn’t drop or fall flat; it’s gone up and it’s strong, double-digit growth. That’s what we look for in a healthy market.” There were 1,193 transactions in 2016 and 1,363 in 2017.
“Our dollar volume is the highest it’s been since the financial crisis eight years ago, and it’s up 11% from 2016. To see that kind of double digit growth in a single year is compelling for Steamboat’s diverse market because it shows a positive trend across the board,” Baldinger Jr. says. He points out that statistics don’t always tell the whole story of Steamboat’s market because part-time residents and vacation homeowners in a resort market behave differently than full-time residents in an urban market might. There is also a vast disparity in property value, location and type throughout the Steamboat market, from ski-in/ski-out condos and luxury single family homes to high-dollar ranch properties. So, while the numbers don’t lie, they do require a little more fine-tuned analysis and interpretation (which is what we’re here for).
Demand is up. Supply is down.
“Inventory has gone down by 20%, which is generally indicative of a modest price increase coming in the near future, as the demand might drive the prices up somewhat,” Baldinger Jr. says. Because of the limited supply of houses on the market, new construction and renovations are on the rise, especially for properties $1 million and up. “That’s a big change from a few years ago,” Baldinger Jr. says. “When we see a lot more home starts and remodel projects, that’s usually also indicative of a slightly rising home market.”
The residential housing market is up.
“The residential housing market for homes under $800,000 was very active in 2017,” Baldinger Jr. says. “These are families and full-time residents who are seeing significant appreciation on their properties in all areas, including on the mountain, Fish Creek, downtown and West Steamboat.” Baldinger Jr. says there has also been a high volume of sales in those areas with continued low inventory, an encouraging sign that the Steamboat economy as a whole is thriving.
“Values saw a double digit increase in 2017, which means everyone’s home is close to 10% more valuable than it would have been in 2015 or 2016, which leads to an overall optimistic outlook. It’s reflective of the local economy and the business market.” Baldinger Jr. adds that Steamboat has advantages over other mountain towns because of its geography – a wide, long, valley that allows for a more diverse offering of real estate that’s still relatively affordable compared to other markets.
Significant Sales in 2017.
In the residential segment of the market, there were 104 sales over $1M in 2017. Of those Steamboat Sotheby’s International Realty participated in 73% of the transactions, and represented both buyer and seller in over a quarter of the transactions.
The sale of Wildflower Meadows, a 155-acre property with 10,000+ sq.ft. estate home just minutes from downtown Steamboat, marked the highest residential sale of the year, and in the history of Steamboat, at a price of $9M on January 31, 2017. Steamboat Sotehby’s International Realty represented both buyer and seller in the transaction.
This ranch in the Elk River Valley sold for $9,790,000, making it the highest sale in Routt County in 2017. Meg Firestone of Steamboat Sotheby’s International Realty represented the buyer.
The sale of 1900 acres in the Elk River Valley on January 6, 2017 at a price of $9,790,000 marked the highest sale of the year in Routt County. This ranch property had not been offered for sale in almost 40 years, and Steamboat Sotheby’s International Realty represented the buyer in the transaction.
For a complete list of significant sales in Routt County in 2017, or to find out about current opportunities, contact your broker at Steamboat Sotheby’s International Realty.