In 2017, the Yampa Valley real estate market saw significant increased sales volume and home valuations. With the year now behind us, what’s on tap for 2018? There has been a significant drop off in inventory from 925 active listings at this time last year to only 400 current listings. With such a limited supply, it’s logical to predict that individual values will continue to rise while total sales numbers may decrease.

The median single-family home price in Routt County has finally returned to 2007 figures, right before the real estate bubble popped. The Routt County Building Department reports that construction valuations and revenue for 2017 will be higher than they were last year, however compared to 2007, construction valuations are only about half of what they once were. In 2018, we expect to see more new construction to help replenish our dwindling supply.

It seems promising that the market will gain in velocity in 2018 as KSL Capital Partners and Aspen Skiing, the recent buyers of the Steamboat Ski Area, begin to put money into ski area renovations. The amount and impact of their investments (and that of other developers) will be influential factors. There is some development activity currently brewing with a few large land parcels near the base area looking to trade hands. Even with a lack of local builders, we can expect to see more land sales as people weigh the “build vs. buy” option.

Another major influence on our 2018 local market performance is Front Range activity; Front Range markets continue to experience high demand and homeowners who purchased in the last decade have gained ample equity. Historically, increased equity in Front Range homes transfers to second home buyers in mountain towns.

The health of the market remains strong. What is still in question is “will we have enough supply?” and “will increasing home values price out many would-be buyers?”. We welcome the opportunity to discuss any of these questions with you.