The year 2020 will go down in recent history as a year of change and discovery. What started off as a steady year early on quickly turned into a roller coaster of a record-setting real estate market in Steamboat Springs. Ending 2019 strong and heading into the new year, we had a healthy market, and the first quarter started out positive with a 15% increase in residential sales volume year-over-year. However, things quickly slowed down amidst the Coronavirus shutdown in the spring of 2020. In the second quarter, residential sales volume dropped a whopping 44% as compared to 2019. Values did not slip during this slowdown, and median price-per-square-foot was up 5%.
As people stayed at home, they became more aware of their surroundings and their dreams. Many also recognized significant changes to the needs within their homes. A nationwide trend began with more people working remotely, thus making choices to leave dense, urban areas, and move to suburbs and more rural parts of the country. This lead to mountain resort towns like Steamboat seeing a booming increase in people wanting to move and live here on a more full-time basis. As summer began and restrictions were lifted, buyers began to flee their urban environments in search of space, fresh air, and room to roam. For many, this became a full-time move to the mountains, while for others, it was an opportunity to find a second home for extended stays.
The sales volume during the summer months ramped up quickly. With already low inventory levels, this increase in buyer demand created a very strong seller’s market and put significant upward pressure on prices. The market was also fueled by historically low interest rates, giving buyers a significant increase in their purchasing power. During the third quarter of 2020, the residential sales volume was up 100% compared to the third quarter of 2019, the median sales price was up 19%, and the available residential inventory at the end of the third quarter was less than half of the prior year. September set real estate records in Steamboat Springs for the highest dollar volume sold in a given month at a stunning $178 million.
With the buyer shift towards the less populated areas, the Steamboat real estate market is poised to continue its strong trend into 2021. Our community offers a safe environment and a high quality of life for our residents and visitors to enjoy. The high demand and limited inventory will likely continue to support a strong market this year. If 2020 has taught us anything, though, it is that there are many unknowns.