The World is Slowly Coming out of COVID-19 Hibernation:

Homebuyers have also reawakened resulting in increased real estate activity. The April and May freeze, where showings were restricted and visitors were not allowed, has thawed but the stay-at-home orders resulted in drastically lower sales volume and transaction numbers. May total sales volume in Routt County was only $35M compared to $69M last year. The mere 48 transactions in the month were 57% less than May ’19. Total sales volume in Routt County is now down 18% year over year. While not surprising, the numbers are stark.

Brighter Days are Ahead:

Activity is ramping up to pre-pandemic levels. Showing activity in Steamboat is only down 1% compared to this time last year. Single family homes under $1M are frequently going under contract near or above asking prices. The rolling 12 month median sale price of a single-family home in Steamboat Springs is now $889K, up from $867K at this time last year. Across most categories and neighborhoods, property values have stayed steady or increased due to low inventory. For the last six months, inventory has hovered near all time lows with only around 300 residential properties for sale in Steamboat. Desperate buyers are hopeful that it’s better “late than never” for the spring spike in inventory, when the number of properties for sale traditionally increases by around 30%.

Buyers Have an Advantage:

Buyers across the country are being aided by historically low 30-year fixed mortgage rates that currently average 3.2%. Nationally, mortgage applications in the last week are up an astounding 18% compared to the same week last year. In April, only 38 properties went under contract in Routt County. The number grew to 80 in May, but still well below typical norms. Estimates for June are that around 100 properties will go under contract (about the same numbers as last June).

While the business case for investment properties that rely on nightly rental revenue will be challenged until travel is back to normal, there is an influx of new buyers looking for what Routt County offers. The pandemic has been hard on those quarantining in crowded urban centers and many of these people are now seeking the Steamboat lifestyle or a second home escape. This new demand, combined with persistent low inventory, will likely buoy property values for the foreseeable future.

Year to Date Stats:

Please reach out if you have any questions about the state of the market; we are more than happy to assist. We also have the following resources available:

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