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As the seasons change, so does the market
Dear Friends,
Summer is upon us in the Yampa Valley. Trails are open, the sun is out and BIDDING WARS for properties have begun. Yes, we did say "Bidding Wars". The market in Steamboat is in transition, with some very interesting things taking place.
This spring we witnessed the first non distressed bidding war for a property since 2008. 380 Old Dairy Lane sold for $60,000 over the asking price, selling for $950,000 Click Here to View Listings. At $444 per square foot, this was clearly not a distressed sale. It is an example of the frustration many buyers are experiencing in today's market. With lots of homes to look at and very few meeting the expectations buyers have, when a quality home hits the market, there is a strong pool of buyers looking.
Old Dairy Lane is located in the Downtown market, where buyers have been struggling to understand value. With relatively few land sales, there has been no frame of reference for what land values are. As we enter this summer, we want to highlight a few sales, which we feel should be used for this purpose: Click Here to View Listings Each of these transactions were for homes where the majority of the value was in the land. With a range between $330,000 to $440,000, we can say the market has established what a building lot is worth in today's market. When the buying community begins to accept these prices as land values, we anticipate the existing homes on the market to see greater interest.
Steamboat Springs is a great example of a supply constrained market. While many areas of the country can grow their boundaries and add new housing infinitely, that is not the case here. Whether it is a downtown condo or a single family home, there is only so much room to develop. Contrary to many opinions in the market, the cost to build is rising, not falling. Material costs are escalating and Steamboat's construction labor market has stabilized. Not only is the supply of good existing homes very limited, the supply of great building lots is small.
We feel strongly that this is the summer to make deals if you are a buyer. The supply of good properties in foreclosure has slowed and the best properties are seeing a great deal of interest. Baring any major macroeconomic catastrophes, we see the market in Steamboat stabilizing this summer. As always, we love feedback and thoughts on the ideas we present. If you have any questions or comments, email or call.
Get out and enjoy the summer!
See you on the trails,
Chris and Amy
March 2011 Routt County Market Analysis
Market Snapshot for the month:
Volume & Units Sold
- The total sales Volume for March was $32,004,300, down 26% from the previous March 2010 Volume of $43,661,200.
- Unit's sold were 142, a 13% increase than the previous March 2010 Unit's sold of 125.
By Area
- For this month of March the Steamboat Mountain Area had the most number of sales with 24 and a Median Transaction Price of $250,000 with $8,059,300 in total sales volume.
- Compared to last March 2010 the Steamboat Mountain Area had the most number of sales with 30 and a Median Transaction Price of $472,500 with $19,808,500 in total sales volume
Interval/Fractional
- For March 2011 their were 74 sales for a total sales volume of $3,236,100 with a Median Transaction Price of $32,050.
- Compared to last March 2010 their were 65 sales for a total sales volume of $8,364,100 with a Median Transaction Price of $65,800.
Price Points
- Of the 43 Residential Improved Units sold for this March, 29 of those were sold for $500,000 or less.
- Compared to March 2010 their were 37 Residential Improved Units sold and 19 of those were sold for $500,000 or less.
Lender Market
- Loans recorded for the this month were 159 compared to 174 from last March 2010.
Bank Sales
- March 2011 saw 15 Bank sales totaling $3,062,900 in Gross Volume or an Average Price of $204,193 per unit.
- Their were 3 Banks sales in March 2010, totaling $1,318,000 in Gross Volume or an Average Price of $439,333 per unit.
- Highest Priced Sale for March 2011:
3/16/2011 $2,300,000 Marabou Subd #1 Homestead B5 aka 42425 River Drum Trail - this is a Vacant Residential Site consisting of 5.81 AC Land. PPAC is $395,869. Located in the Elk River/Strawberry Area
- Highest PPSF Sale for March 2011:
3/7/2011 $1,156,500 Howelson Place Condo Unit B309 aka 0703 Lincoln Avenue - 2 Brm 2.5 Bath YOC 2008 with 1,656 SF Living Area. PPSF is $698.37. This is a New Construction sale in the Steamboat Town Area.
Analysis provided by: Bruce Carta of Land Title Guarantee Company
Click here to view March Market Analysis pdf.
April 2011 Routt County Market Analysis
Market Snapshot for the month:
Volume & Units Sold
- The total sales Volume for April was $32,443,500, down 39% from the previous April 2010 Volume of $53,646,200.
- Units sold were 72, down 31% from the previous April 2010 Units sold of 104.
By Area
- For the month of April, the Steamboat Mountain Area had the most number of sales with 18 and a Median Transaction Price of $350,000 with $10,540,000 in total sales volume.
- April 2010, the Steamboat Mountain Area had the most number of sales with 33 and a Median Transaction Price of $720,000 with $29,739,600 in total sales volume.
Interval/Fractional
- For April 2011, there were 23 sales for a total sales volume of $1,519,800 with a Median Transaction Price of $50,900.
- In April 2010, there were 40 sales for a total sales volume of $4,095,900 with a Median Transaction Price of $55,900.
Price Points
- Of the 38 Residential Improved Units sold this April, 61% were for $500,000 or less.
- In April 2010, there were 52 Residential Improved Units sold and 52% were for $500,000 or less.
Lender Market
- Loans recorded for this month were 112, compared to 160 last April 2010.
Bank Sales
- April 2011 saw 9 Bank sales totaling $3,043,800 in Gross Volume or an Average Price of $338,200 per unit.
· There were 7 Bank sales in April 2010, totaling $4,158,500 in Gross Volume or an Average Price of $594,071 per unit.
- Highest Priced Sale for April 2011:
4/14/2011 $2,875,000 Dakota Ridge Subd Lot 24 aka 31550 Aspen Ridge Road – 4 Bedroom 5 Bath YOC 2007 with 6,567 SF Living Area on 5.79 AC. PPSF is $437.80.
- 4/5/2011 $2,400,000 Edgemont Condo Unit 2505, Building A aka 2410 Ski Trail Lane – 3 Bedroom 3 Bath YOC 2009 with 2,910 SF Living Area. PPSF is $824.74.
- 4/1/2011 $2,150,000 Catamount Ranch Subd Lot 13 aka 34155 Catamount Drive – 4 Bedroom 4.5 Bath YOC 2003 with 5,013 SF Living Area on 4.82 AC. PPSF is $428.88.
Analysis provided by: Bruce Carta of Land Title Guarantee Company
Click here to view April Market Analysis pdf.
Chris Paoli
Owner/Broker
Cell 970.819.1432
chris@mybrokers.com
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