The heat is on! Not only with the gorgeous weather in the Yampa Valley, but also with our real estate market. This time last month, there were only 69 offerings county-wide; now we’re up to 117. We’ve jumped from less than one month of available inventory to 1.3 months of inventory.

Although it may not seem like much, it’s a dramatic improvement for buyers who’ve been struggling with limited inventory for the past two years. It’s still a competitive market, even if there’s more to choose from, with the median days on market sitting at seven.

Price Appreciation Might Decelerate

With rising interest rates (conventional 30-year fixed mortgage rates are now 6.3%) and an increase in available homes to choose from, economic theory would suggest that the rapid home price appreciation of the past two years will begin to decelerate. Although there’s reason for optimism that the market may cool, buyers shouldn’t start jumping for joy just yet; the average price of a single-family home in Steamboat Springs is now $2M.

New Short-Term Rental Regulations

The Steamboat City Council recently approved new regulations limiting short-term rentals.  Although there is still uncertainty in terms of its application, some owners who were able to short-term rent are now prohibited from doing so, as their homes are in the “red” zone. Others, particularly those in the commercial areas of downtown and next to the ski resort, may only short-term rent if they are in the “green” zone. And still others are in the “yellow” zone and must obtain one of a capped number of permits to short-term rent. To add another curveball to this confusion, it sounds like those who were short-term renting in the yellow or red zones prior to the enactment of the overlay zones may continue to do so.

With the market and local laws moving as quickly as they are, our experienced agents are here to help answer any questions that you may have.