As we tiptoe out of quarantine, it’s apparent that every corner of the globe will be affected in some way. This includes real estate in Routt County where April sales volume was down 53% compared to April 2019. After a huge first quarter, which included an active March, total market volume is now down 6% year over year.

As home buyers and sellers navigate new safer-at-home orders, transactions are still closing, just not at the rate that we’re used to. For most of April, in-person showings were barred, meaning May and June sales volume will be weak. Now that showings are allowed again, albeit with safe social distancing, we can expect an uptick in activity as the number of pending contracts rise.

It’s hard to fathom that just 75 days ago we had historically low unemployment, record sales volume in real estate and all-time highs in home values. We continue to see that it’s hard to compare this situation to any other downturn. The most recent recession in 2009 was started by a credit collapse in the housing system which took down global economies. Heading into that recession, in which Steamboat home values dropped by 19%, there was a loose credit system and declining household formation. The good news is that those attributes didn’t exist heading into this downturn; in fact, many national economists believe housing will be one sector that helps the economy recover.

We still have historically low supply with only 300 active listings in Steamboat. Unless demand dwindles significantly, home values in many segments will likely hold solid. Locals housing, such as single-family homes under $1.5M, remain in the tightest supply. Some relief is coming this week, as applications will be taken for locals looking to live in Alpenglow Village, the 72-unit affordable housing project which opens this summer. Investment properties that rely on nightly rental income may see the most downward pressure on values as the investment thesis may be temporarily harder to justify if less tourists visit.

Sellers took a pause on listing in April with only 59 new properties hitting the market, half of what it was in April 2019. If buyer demand remains solid, it will no doubt encourage sellers to list sooner rather than later.

We are happy to be a resource to you during this time; please let us know if you have any questions.