The fall colors are peaking, the temperatures are dropping, and the hustle and bustle of town is just a little quieter. But what’s happening in the Steamboat Springs real estate market as we head into the fourth quarter of 2021? A year and a half after the beginning of the pandemic, the biggest question out there is if the market will slow down anytime soon. Real estate in Steamboat has been a whirlwind since June of 2020, with record-breaking stats across the board while experiencing low-standing inventory like we’ve never seen before. Here’s a breakdown of where the pulse of the market sits as we round out 2021.
While it might feel like the market is cooling down, there’s no doubt it’s still hot. Through September of this year, total sales volume in the Steamboat Springs MLS records that we are just short of the total volume for the entire year of 2020 – with three months left in 2021, we’re only about $6M shy of where total volume ended last year. We use the term “low-standing inventory” meaning that it feels as though there are few listings available for buyers in the market, which is true in that the demand is at an all-time high, shown in the steep decrease in the median days in the MLS (only 7 days, a 79% decrease compared to 33 days in 2020). However, we say it’s low-standing because when looking at the number of residential sales, the transactions continue to be higher year-over-year, currently at a 12% increase as compared to the beginning of Q4 2020. Therefore, it’s clear sales are taking place, just at an unprecedented rate, creating an highly competitive buyer’s market.
The sales volume so far in 2021 continues to show an incredible 52% increase compared to the volume through the end of September 2020, thanks to the rise in price-per-square-foot and median sales price. Residential sales, excluding fractionals, have hit $499/sf (a 36% increase), and the median sales price has risen to $745,000 (a 31% increase). Specifically in the downtown, Fish Creek, and mountain area neighborhoods, single family homes and townhomes have the lowest inventory available, and on average are selling at 100% of the list price. In these property types priced under $1M, demand is so high that properties are selling for 101% of the asking price, with average over-ask offers at 3% more than the list price, and often in a multiple-offer situation.
With low inventory, particularly in single family homes, land sales have increased dramatically in 2021. Through the end of September of this year, there has been a 110% increase in land sales and a 146% increase in sales volume as compared to the same time last year. The recent sale of the Brown Ranch, the 536+ acre parcel in West Steamboat undoubtedly will bring incredible changes to our community when it comes to inventory and affordable housing.
We are still experiencing a complex real estate market in Steamboat Springs. If you are looking to buy or sell, or have questions on how this information pertains to you, let us connect you with one of our real estate professionals.