As Steamboaters reveled in the Winter Carnival glow of watching the world’s largest firework explode, real estate activity in January was also booming. Routt County had a very solid $42M in sales volume for the month, up 12% from January last year. There were 56 transactions in the month, compared to 70 in January of 2019, meaning that the average sales price was up significantly, a whopping 43%.
Contributing to the strong start were three substantial downtown commercial deals totaling $9.5M. Old Town Square, which houses 17 businesses including The BARley, Big Iron Coffee and Yampa Sandwich Company, sold for $6.65M. Additionally, the Ghost Ranch, which had been on and off the market for much of the last five years, sold for $1.8M. Also, one of Steamboat’s longest running restaurants, the Double Z Bar and BBQ, was purchased for $1.1M (both the business and building). With ever-increasing visitor numbers and some much needed investments in Steamboat Resort by Alterra, perhaps more commercial investors are seeing Steamboat as a vibrant location to put their money to work.
A significant dip in inventory continues to be a main theme. There are only 236 residential properties for sale in Steamboat Springs, down from 366 at this time last year; this is a stark difference from the years after the real estate crash (2009-2012) when brave buyers often had over 1,000 properties to choose from. The total value of current inventory has dipped to lows not seen in the last decade, now under $500M.
Of course, low supply means prices will likely continue to appreciate, perhaps until the typical influx of new inventory in the spring. The median sale price per square foot has hit all-time highs for both single family homes ($358/sq. ft.) and condos/townhomes ($385/sq. ft.). New sellers are also aware of the lack of inventory resulting in higher than ever list prices. In January, the median list price of a single family home going on the market was $1.3M, while condo/townhomes crested $500K.
As always, your friends at Colorado Group Realty are happy to answer any real estate questions that you may have; please give us a call!
