Housing inventory in the Steamboat market is at a historically low level with just over 100 single family homes currently on the market within city limits. As a result, the market has turned into a seller’s market, with prices rising and houses going under contract quickly after being listed.

According to Chris Paoli, a Broker/Owner at Colorado Group Realty, the low inventory is attributable to Steamboat being a desirable place to live, attracting first and second homeowners.

“As long as Steamboat remains popular with tourists, we will continue to see prices rise,” said Paoli. “Our overall affluent visitor has increased substantially over the past five years. With recent infrastructure improvements and new restaurant scene, Steamboat is very appealing.

In 2017, Steamboat median single family home prices appreciated by a healthy 8.5%. Most are predicting that prices will continue to rise until the economy slows down. While the visible increase in construction will help balance the supply shortage, there isn’t enough in the pipeline to meet demand. In 2008, construction of several significant developments, including One Steamboat Place, Edgemont, Howelson Place and Alpenglow was completed. However, the last recession hit shortly thereafter and these developments were not fully absorbed by the market until last year. Now, with the developer inventory of those projects finally sold, Steamboat faces a tighter shortage in the number of properties available.

When will prices stabilize? It will likely take a slow down in the overall economy before there is a decline in Steamboat’s economy, including housing prices. Meanwhile, Steamboat home buyers are hopeful that builders will fill some of the void with new homes and developments.