Although the Steamboat Springs real estate market has seen a dramatic drop in purchase activity (20%) and an even more dramatic increase in inventory (90%) over the past 12 months, values of single family homes have remained strong in all geographic markets. It is difficult to determine whether or not this trend will continue or whether values might catch up with the inventory increase, but for now it’s ‘steady as she goes’.
To make this evaluation easier to digest, and to keep annual time periods as recent as possible, the following timelines shall be used for reference:
Period 1: June 1, 2005 – May 31, 2006
Period 2: June 1, 2006 – May 31, 2007
Period 3: June 1, 2007 – May 31, 2008
Looking at the three most recent annual Periods, statistics posted for single family homes by the Steamboat Springs Multiple Listing Service show Period 2 purchases totaling 431 and Period 3 purchases totaling 327; a 24 percent decline. This reduction was practically the same amount of increase in the prior 12 month period (Period 1) at 345.
From a more detailed geographic perspective, Stagecoach was the only area where single family homes experienced an increase in transactions for two straight years; increasing from 26 to 28 then to 34 purchases in Periods 1, 2 and 3, respectively.
The MLS area of western Routt County, including the town of Hayden, saw the largest percentage drop of 45% from Period 2 to 3, or from 71 to 39 purchases. However, this drop may be from an outstanding Period 2 purchase report, where purchases increased 87% from Period 1.
Single family home purchases within the Steamboat Springs town limits dropped from 141 in Period 2 to 103 in Period 3, or 27%.
Although purchases have been down, sales prices have remained on the increase throughout Routt County, where the median price of a single family home in the most recently completed 12 month period increased 17%, or from $496,000 to $579,000.
The median price is the mark where half of the sales are higher than that amount and half of the sales are lower than that amount. The largest percentage increase over the 12 month period was in North Routt, including the towns of Clark, Steamboat Lake, Hahns Peak Village and Columbine, jumping 67% to a median price point of $775,000.
Although South Routt, and the towns of Oak Creek, Yampa, Phippsburg and Toponas are the most affordable at a $225,000 median price, homes in those areas posted a remarkable 22% increase!
Median home prices within Steamboat Springs increased 16% over the past year to $855,000. The South Valley, located immediately south of Steamboat Springs, and including the developments of Lake Catamount and Catamount Ranch, Dakota Ridge, Sidney Peak Ranch and Big Valley Ranch, captured the highest median price at $1,112,500, and saw a 12% gain over the past year.
Although Stagecoach experienced the only two-year run of purchase increases, it is the only area that saw a median price reduction from the prior year, but at a modest 3%, from $472,500 in Period 2 to $460,094 in Period 3.
In a market where the average size of a home seems to be constantly increasing, one of the best ways to determine how real estate values are appreciating or depreciating is by calculating a value per square foot.
This is calculated by taking the purchase price of a property and dividing it by the finished square footage of the home, giving a value no matter what the size of the property is, but the space in which the real estate exists.
Throughout the Steamboat Springs MLS area, the average price per square foot increased by 4% in Period 2 ($241) and 7% in Period 3 ($258), with Period 1 being the baseline at $232. The area that enjoyed the greatest increase in Period 3 was South Routt, with a 26% increase, but still a very affordable $164 per square foot.
Steamboat Springs homes almost matched the South Routt increase, moving 23%, or from $308 to $380. No geographic areas decreased from the prior year, but the smallest increase was in the South Valley posting a mere 3% increase in price per square foot to $333.
An interesting point to note is that the average year a home was built and was sold in South Routt in Period 3 was 1940, whereas Steamboat Springs was 1983 and the South Valley was 1990.
Using these figures, a 2,000 square foot home in South Routt would calculate to $328,000, but a 2,000 square foot home in Steamboat Springs would be valued at $760,000.
There is no doubt the Steamboat Springs real estate market has taken a breather in recent months, but the market has experienced a phenomenal run over the past several years. Single family homes are the most popular product type in our market – representing a full quarter of all real estate purchases made, and even in a weakened market, the values maintained by this product type have up to this point shown exceptional resilience.**Nothing on this website should be confused with financial or legal advice. If you need this, or any other type of advice, please seek the help of a competent professional. In addition, because real estate laws change all the time and differ from state to state, and even city to city in the same state, everything in these pages should be considered general marketing advice and ideas. Please see link to full Disclaimer at the bottom of this page.