According to the National Association of Realtors, around 70% of individuals with a net worth of $5M or more own two or more properties. That number of individuals grew by almost 20% in 2021. Among the greatest impacts that the wealthiest population made on the economy since the pandemic were to real estate and the growth of the luxury home market. The location neutral movement, and a shift in lifestyle centered on the outdoors and wellness, pushed rural communities up in desirability.
Sales Volume Increase
Astronomical figures in property sales made headlines across smaller mountain towns. Sales volume for Routt County in 2021 was $1.5B compared to $1.1B in 2020 and $776M in 2019.
The median sold price for a single-family home in Steamboat Springs grew by 86% from $963K in 2018 to $1.7M midyear 2022. Townhomes increased by 147% from $628K to $1.55M in the same timeframe. Average price gains on a luxury home in 2021 increased by 26%.
Cash Deals Reign
Land Title Guarantee Co. reported 50% of home purchases in 2021 were cash deals, with the figure rising to 60% at times during 2019. In 2022 the number has fallen to 42.1%. Unlike buyers influenced by interest rates, cash buyers are typically more affected by changes in the stock market.
Exclusivity in Routt County
The exodus from urban areas put Routt County in the spotlight as a relatively affordable option compared to other international ski resorts in Colorado. High-end developments including Alpine Mountain Ranch and Club, Catamount Ranch and Club, Marabou and One Steamboat Place offer exclusivity, and amenities such as private fishing, golf, horseback riding, fitness clubs and trails, which are valued by buyers.
Desire Vs Quantity
Among the wealthiest of the “millennial” generation, there has been a shift in desire for quality over quantity. They want less square footage in lieu of high-end finishes, home automation technology, sustainable products and state-of-the-art kitchen and bathroom amenities.
Buyers in Routt County want new experiences, access to leisure amenities and a sense of community. Popular features sought after by the luxury home buyer include:
