2018 Real Estate Market Report

STEAMBOAT SOTHEBY’S INTERNATIONAL REALTY

2018 MARKET REPORT

SUPPLY OR DEMAND—WHAT TURNED IN 2018?

With 8 years of steady growth in transactions that averaged a 15% increase year-over-year, why did the 2018 Steamboat Springs real estate market see a drop in transactions of 7%? A quick answer might be that the demand has dropped. However, the drop of transactions may not be due to a reduction in demand, but in a reduction in supply to meet demand.

Less inventory led to less buying opportunities, which in turn led to fewer transactions. With lower
demand would have come a reduction of property values. However, the average price of all properties sold increased by 13% from 2017 to nearly $600,000; the 2nd highest on record.

In 2017 the Steamboat Springs MLS posted 1,373 transactions; 4th best recorded and highest since the 2008 crash. The 2008 crash brought on a rash of listings in 2008–2010. From 2010 to 2016, when buyers started coming back into the market, listings declined 7% annually as demand began to outpace supply. However, in 2017 that percentage tripled to -21%, setting the stage coming into 2018, which posted the 4th lowest number of listings the MLS has seen.

Despite transaction decline, dollar volume increased 6% in 2018 to $761 million; the 2nd best in Steamboat MLS history. This is only the second time since 1996 the phenomenon of transactions declining and dollar volume simultaneously increasing has occurred.

2018 Annual Market Report

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