Hot (and Cold) Areas in Steamboat’s Single Family Home Market
~ by Doug Labor. The Steamboat Springs area single family residential (SFR) market has certainly experienced its ups and downs over the past several years. In a general sense, the market has been on a slow and steady climb since 2008. However dramatic geographic changes in demand have occurred,resulting in values remarkably different in just a few short years.
There are five primary geographic markets surrounding Steamboat Springs. The data collected in this study is from the Steamboat Springs Multiple Listing Service. In order to represent the most up-to-date information, the annual data taken is from May 1 to April 30 for each year. In other words, the data posted as 2014 was actually taken from May 1, 2014 to April 30, 2015. Average property values are determined by dollar-per-square foot ($/sf), considered by real estate practitioners as the least common denominator to compare properties.
Approximately 50% of all SFR purchases in Routt County occur within the City of Steamboat
Springs. Averaging $400/sf in both 2007 and 2008, then housing boom in 2012 at
$230/sf, property values have recovered to nearly $300/sf. 2014 activity hit 140 sales,
which is two better than the prior record of 138 in 2006.
Home to some of the most valuable real estate in the Yampa Valley, the neighborhoods of
Dakota Ridge, Catamount Ranch and Club, Priest Creek, Agate Creek and the like make up
the area known as the South Valley. This area does not post as many sales as others, but
what is purchased is typically high end, and as such shows more graphically errac transac
on activity, however, property values have remained steady at $300/sf.
Stagecoach / Oak Creek
Once a hotbed of acvity, the communies of Stagecoach and Oak Creek were hit hard
with the 2008 market crash. Foreclosures created a major impact, where of the 29 homes
sold in 2010, all but six were bank owned. However, these communies in Southern
Routt County have showed their resilience and have posted nearly as many sales in 2014
(40) as they did in the boom year of 2007 (44). Of those 40, only seven were distressed
sales. SFR’s in this area have been purchased at an average of $131/sf which is roughly
half that of properes within the city limits of Steamboat Springs just 20 miles away.
Activity in North Routt and the villages of Clark, Steamboat Lake, Hahns Peak Village and
Columbine took the greatest hit of the other five locaons in this study, and a mere nine
SFR’s were purchased in 2009. Prices soon reacted, falling 50%, from $297/sf to $155/sf
in two years. However, the North Routt market is recovering and is now matching 2007
levels in transacon acvity, and prices are beginning to follow suit.
Hayden / West Routt
Commanding nearly one-third of the Routt County SFR market in 2006 and 2007, Hayden
and parts west of Steamboat have taken quite a hit and have been slowest to recover. A number of subdivisions came onto the market
in the mid-2000’s that once boosted this market. Bargain hunters should consider this area, where SFRs were once selling at over
$200/sf, but are now in the $120/sf range. When transaction activity picks up a ltitle more, prices will soon follow.
Where could the market head in the future? Taking a look at
the current inventory and dividing by prior year home sales
may shed some light, at least on a short term basis. This calcula
on yields the number of months of SFR inventory in a
given price range, and provides a measure of supply and demand.
In the chart below, SFR’s priced under $750,000 in Steamboat
Springs (where less than a four month supply exists) could
experience some upward pricing pressure due to limited supply.
Market wide, there is plenty of inventory in most price
ranges over $1.25m, while the lower price ranges are where
the majority of demand and lowest inventories exist.
There are certainly more hot than cold areas in today’s market, and should the trend connue, even the Hayden / West
Steamboat area should see a bump in prices. Especially in Steamboat Springs, supply in the more affordable ranges is
dwindling and there are no major development plans at least in the immediate future, for this to change. When homes
were fetching $400/sf, 40% of Rou) County SFR purchases occurred within Steamboat Springs. When the market started
correcting in 2008 and SFR’s were at a more affordable $250-$300/sf, buyers returned to Steamboat, capturing a 50%
market share. However, hints of an outward migration of buyers seeking affordable housing in outlying communities has
commenced, as single family residences in Steamboat Springs have again become more expensive.
ABOUT DOUG… Doug Labor has over 30 years of re estate experience, including executive level positions with some of the largest ski and golf resorts in North America He is the General Manager of Sotheby’s downtown Steamboat Springs oﬃce. What he enjoys most in his real estate practice is providing imaginative, yet logical and valuable guide in helping clients reach their goals. industry knowledge and service has clients and peers as one of the premier brokers in Steamboat, with the 2005 and 2014 Steamboat Springs REALTOR of the Year and 2012 and 2014 “Best of the Boat” Real Estate Agent awards. Doug’s clients appreciate his unsurpassed market knowledge and keen negotiating skills working for them, as well as the professional work ethic and personal care he delivers to each and every client, no matter if they are in the luxury or introductory market. www.buysteamboat.com