Market Still On Fire, Overall Sales Up
Bidding wars. All cash offers. Homes selling far over asking price. The Yampa Valley housing market is still on fire. Overall sales volume through October is up more than 50% from this time last year while the number of active listings in Routt County remains lower than this time last year. Homes continue to be snapped up, often within days of listing. The county-wide median days on the market is a meager eight days. This is not surprising since there is only 1.3 months of inventory available. Pending listings county-wide are actually up from September (111 in October vs. 108 in September) and the number of closings in October remained strong at 114. September’s closings were cash heavy, with 52% of buyers closing without a loan.
Single family homes in Steamboat Springs city limits remain the hottest category in the market as the average price has crested $2M for the first time in history. Routt County homes outside city limits however actually saw a slight dip in their average price.
Large Equity Cushion for Homeowners
A recent nationwide study found that the average mortgage holder now has $173K in equity in their home. This is excellent news because, as real estate data firm CoreLogic notes, “large increases in home prices have given most borrowers a large home equity cushion, making foreclosure far less likely.”
Artificial Intelligence Cannot Replace Real-World, Human Experience
Some interesting news from the real estate industry is that Zillow has shut down its instant-buying (iBuying) program, Zillow Offers. Although iBuying has not come to Routt County due to the unique nature of our community, it illustrates some important lessons for sellers in all markets. The idea behind iBuying is that a company (Zillow Offers, Opendoor, Offerpad, etc.) uses artificial intelligence to make an “instant offer” on a home. Zillow used its proprietary “Zestimate” software to value homes. After losing $304M on the venture, Zillow has decided to sell 2,000 homes and cut 25% of its workforce, because they purchased homes for prices higher than it could sell them. The lesson here is how difficult it is to use artificial intelligence to make up for real-world, human experience in pricing a home. So if you’re considering using an iBuying company or placing a large emphasis on “Zestimates” remember this: Zillow’s experience proves that a machine cannot replace seasoned real estate professionals trained in the art and science of pricing a home.
Call Us Today
Whether you’re buying, selling, or thinking of both, we can help. Give us a call to see how we can help you with your situation today. (970) 870-8800.