Warm Weather, Hot Housing Market
That seems to be the case in Routt County! The number of active listings remains low with 134 active listings (excluding fractionals) throughout Routt County compared to 406 listings this time last year. This dearth of supply encourages a competitive marketplace with many properties receiving multiple offers. Indeed, the average days on market this year is just 39, while it was 93 through the first six months of 2020.
Average Closed Price of Homes is Up
The lack of supply and increased demand continues to exert upward pressure on pricing: the average closed price of homes of all types is up 29% county-wide and up an eye-popping 34% in Steamboat Springs. Price per square foot is now averaging $562, up 40% from last year, pricing many hopeful buyers out of the market.
Inventory is Moving Fast
New listings hitting the market spiked slightly in June (93 new listings compared to just 65 in May) but buyers snapped up the vast majority of those listings quickly, a trend that doesn’t seem to be changing. Sales volume for June crested $100M which is almost double the pandemic-dampened sales volume from last June. So what are buyers and sellers to do in such a competitive market?
Tips for Buyers in this Market
For buyers, preparation is key. Perhaps the most important thing a buyer can do is have their financing in order. In Steamboat, over 50% of homes are being purchased with all cash, putting buyers using a loan at a disadvantage. This year, the average sale-to-list price is 100%, with some homes going for 108-112% of ask price. Buyers need to ensure that their offers are submitted with pre-approval letters (if their deal will be financed) or proof of funds (if paying in cash). Buyers also need to be ready to act immediately as many homes have multiple offers within hours of listing.
Tips for Sellers in this Market
For sellers, although it is a “seller’s market”, preparation is also key if they are to demand top dollar. There are many buyers competing for the same properties so a bit of planning and elbow grease before listing a home can go a long way to ensure the best offer. Sellers should also remember that the highest price in a multiple offer scenario isn’t always the “best” offer.
Colorado Group Realty has experts in every regional market segment for both buyers and sellers. Give us a call at 970-870-8800 to see how we can help you with your situation today.