Guide for relocation to Steamboat Springs, CO

Real estate trends reveal opportunities

Moving to Steamboat? It’s still a good time to buy. Since the turn of the century, market value in the Steamboat Springs real estate market has had its ups and downs. For the first half of 2014 the market has seen an increase in the median purchase price (red line in Graph 1) to $320,000, up from the year before at $284,000 and tied for the fourth highest median price the market has ever experienced.   Adding a trend Line (black) to the median price reveals just how aggressive the market was in the mid 2000s and how it overcorrected in the early 2010s.

However, should the second half of 2014 remain consistent with the first, prices as a whole may normalize. Analyzing different product types provides perspective as to which market segments merit opportunity and caution. Single family homes have seen the greatest activity and appreciation, realizing higher-than-average appreciation since 2000. They are also selling at the second highest median price in history, at $522,500.   The second most popular residential product are condominiums, which, at least for the time being, have appeared to have leveled off at $250,000. This number is far below the trend line path, which indicates median price should be closer to $300,000. This product type could prove a good investment at 20 percent below the trend.

Furthermore, no new condominium projects are on the horizon: The only product to meet future condo demand will be existing inventory, and this may soon begin to impact the median price.   The median pricing of townhomes enjoyed a significant bump in 2006, 2007 and 2008, however their 2014 median price of $444,000 is 7 percent below the 13-year historic trend. They, too, could prove to be a sound investment. “The local real estate scene is picking up steam,” says Cam Boyd, broker/owner for Steamboat Sotheby’s International Realty. “The average sale price has increased around 11 percent from last year and the total volume is up 14 percent. Our market is small and as consumer confidence increases, more investors will enter and the inventory will shrink faster. There are still some great opportunities in all price ranges and values are still well below the high point of the market in 2008. It seems that prices will continue to climb steadily as the demand outpaces the supply.”

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