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.

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