As the Coronavirus spreads and worldwide fears escalate, leading to massive global economic changes and a bear market (a decline of 20% or more in the stock market), it remains to be seen how the local real estate market will be impacted. One thing is certain: when a pandemic and economic event of this magnitude strikes, nearly every corner of the globe and economy will change in some way, including real estate in Routt County.

So far this year, extremely low mortgage rates have given buyers increased buying power, while a sustained lack of inventory has meant continued increasing home values. Sales volume in Routt County through February was a healthy $85M, up 18% from 2019. However, transactions are down 17% meaning median home prices are up significantly. In Steamboat Springs, the median residential property is $555K, up from $420K just two years ago.

Inventory in Steamboat has held in a tight range the last four months, around 282 total properties, down precipitously from last summer when there were 450 active listings.  May is typically when inventory starts its spring rise, usually peaking in July at around 100 more listings than the winter lows. Surprisingly, even with such low inventory, the median days on market has been ticking up for many months, now at 50 days compared to last winter’s lows at 30 days.

With the first cases of Coronavirus arriving in Routt County, how many expected visitors and potential buyers will cancel their upcoming trips to Steamboat? How many potential second homebuyers, who make up half of homeownership in Steamboat, have experienced massive hits to their net worth with stock market declines of the last two weeks, thus putting a dent in demand for second homes? Only time will tell but it’s certain that the healthy market of the last few years will be tested in the coming months.

As with any market uncertainty, it’s often those who remain calm and educated who fare the best. In time, we may look back at this as an opportunity. Please contact us for real-time market information to ensure this scary period results in the best outcome for you.