As the end of the year quickly approaches, it’s becoming more clear that the Steamboat seller’s market we’ve grown accustomed to is now slowing down. 

After eight years of steady inventory declines, inventory now is above levels from this time last year. We currently have over seven months of inventory compared to just four months of inventory one year ago. Typically, home prices appreciate when there are less than six months of inventory and they stay flat or depreciate with above six months of inventory. 

This has held true in 2018; we’ve been under six months of inventory for most of the year and median home prices are up (see chart at right). As Colorado Group Realty celebrates our most productive year in our 21-year history, overall market sales volume year to date is $510M, approaching an all time high. 

Despite the overall gains this year, numerous factors are contributing to what appears to be a return to normalcy. The stock market is now down on the year, indicating that the long bull market may perhaps be over. Given that around half of the properties in Steamboat are second homes, the market relies heavily on buyers having healthy discretionary income from stock gains. Also, while interest rates are still at near historic lows, they have risen nearly a full point in the last year, impacting buying power. Inventory, especially in the the entry level category, is still tight with building costs continuing to rise. Around the country, these factors are contributing to slowing home buyer demand. 

Nonetheless, as skiers and snowboarders take their first turns of the season at Steamboat Resort, it is apparent that this winter will be one of our busiest yet. Early visitor bookings are strong, showing that perhaps the new Ikon pass will drive additional skier visits. New tourists eventually translate to new buyers, potentially keeping demand strong. We currently have 450 properties on the market, half of what we had just five years ago; Steamboat inventory is still low by historic standards. 

In shifting markets, savvy buyers and sellers have an advantage. It’s important to partner with an expert; let Colorado Group Realty help you today.