Home Sales Are Speeding Up
After two months of pandemic-induced hibernation, the Routt County real estate market is roaring back. In June, more properties went under contract than in any previous month in recent history. A whopping 132 properties went pending in June, compared to a paltry 38 in April when in-person showings were banned.
This trend is playing out across the country as home sales have sped up; properties are selling at the fastest pace in more than two years. Nationally, pending home sales from May to June increased 44%, with the largest month over month gain ever. While the market is extremely active now, overall sales volume in Routt County is still down year over year because of the exceedingly low numbers in April and May. Through June, there have been 414 transactions totaling $273M compared to 543 deals for $329M in 2019.
Homes Became Families’ Sanctuaries during the COVID-19 Lockdown
Homes became families’ sanctuaries during the COVID-19 lockdown. In the process, many Americans realized there were things they wanted to change about their living situation. Single family homes, outdoor living, more square footage and home offices are all features that are seeing increased demand. Urban migration to the suburbs and more rural areas has also already begun. This is apparent here in Steamboat as we’ve seen an influx of new buyers looking to either move here full time or to purchase a second home.
Low Inventory and New Construction Likely Means Home Appreciation
With persistent low inventory, and new construction that is not keeping pace with demand, it likely means that homes will continue to appreciate in desirable places like Steamboat. Conversely, densely packed urban areas may start to see price relief. For example: during Q2 in Manhattan, the median sale price fell 18%, the biggest decline in a decade.
Like most of the country, low inventory in Steamboat continues to challenge home buyers with limited options. In previous years, active inventory spiked around 20% in June but this year it stayed relatively flat; this was perhaps caused by leery sellers who aren’t yet comfortable with potential buyers touring their homes. We now have 395 active residential listings down 29% from this time last year.
