The Unbelievable Impact of COVID-19 on The Housing Market Continues to Surprise
Many recent national real estate reports are littered with the terms “all-time” and “historic” reflecting the unbelievable impact COVID-19 has had on the housing market. Nationwide inventory has shrunk to only 2.4 months of supply and the national median home price has reached a record high of $311K. Home prices have now increased on a year-over-year basis for a staggering 105 months straight, validating the value of owning real estate. Buyers across the country, and in Steamboat Springs, are regularly bidding on 5-10 homes before an offer is accepted. Nationally, the construction industry is responding to the demand as 110K new construction jobs were added in March in the U.S. Unfortunately, lumber and other construction material prices are escalating rapidly, likely meaning housing prices won’t stop their ascent any time soon.
Steamboat Median Home Price Doubles in 5.5 Years
In Steamboat, median single family home prices continue their dizzying rise, hitting $1.2M, doubling in just five and a half years. Condo/townhomes are up 22% from only one year ago, now at $538K. There is now less than one month of condo/townhome inventory, compared to over 32 months of inventory exactly a decade ago. Real estate market reports sound like a broken record when discussing the lack of inventory; this report is no different. Steamboat currently only has 46 single family homes and 47 condos for sale, a measly 29% of what was for sale at this time last year.
Median Days on Market For Steamboat Springs Homes is Just 16
In Q1 of this year, 218 new residential properties were listed for sale, while 221 went under contract, keeping inventory flat but still depressed. This is the highest number of new properties listed for sale in the first quarter since 2017, but as fast as they get listed, they fly off of the shelf. The median days from list date to contract date is just 16, meaning desperate buyers need to act extremely fast and sellers need to be ready for a flurry of showings right out of the gate.
The activity still pales in comparison to the mania of Q3 2020 when there were 430 properties that went under contract. Hopeful buyers who are striking out on finding their dream home are hopeful that this spring yields an influx of new properties to hit the market. In a typical second quarter, around 300-400 new homes get listed, which will no doubt get snapped up quickly given the current demand of those wanting to live in Steamboat.
Don’t let low inventory in the housing market discourage you. Whether you’re a potential seller looking for your next home or a buyer seeking your first home, we are here to assist every step of the way. Competition is high but our agents can help you explore some options that you may not have thought of. Give us a call at 970-870-8800 to discuss.