Airline subsidy is a great investment.
Steamboat Springs was the first ski community to develop a subsidized airline program to allow easier access to our guests in the winter season. This program was really what put Steamboat on the map as a destination ski resort and has been tremendously successful as well as wonderfully managed. The problem is that with the merger of the airlines, along with several other factors, the cost of these subsidies or revenue guarantees are ever increasing.
Originally the cost of this program came primarily from the Ski Corporation with assistance from the Chamber and its members. The burden of a yearly drive for these monies and the fact that the contracts for the airlines needed to be accomplished almost immediately following the ski season, this way of raising funds was too unstable. In 2004 the community passed a 2% lodging tax that provided us with a nice cushion and surplus. However the past two years have proven to be more expensive and the reserves have been deeply cut into. This past winter saw a 27% reduction in airline seats and the economic affect was visible. Without doing anything those reserves will dry up in another two years.
This fall we have a sales tax initiative on our ballot. The sales tax would be an increase of twenty five cents (one quarter) for every one hundred dollars purchased. This initiative also has a sunset of five years. The hope being that with the increase the 27% reduction in seats could be reversed and as more seats are available meaning more people flying in meaning increased sales tax and increased lodging tax. Hopefully in five years we will have a nice reserve that will allow us to retire the sales tax. I would argue that even if that doesn’t occur the increase in sales tax is a worthwhile investment into our community.
The only argument that I have heard against the tax increase is that we are subsidizing a major corporation (Ski Corp) and that they should foot the entire bill. But is the ski area truly the only benefactors of this tax increase? How about the lodges and restaurants and the grocery stores and the ski shops and the clothing stores and the Real Estate market? All benefit from an increase in winter traffic and those that benefit should help pay. Statistics show that the airline subsidy program pays about $30.00 per passenger that flies in to the Yampa Valley Regional Airport. That passenger will spend an average of $1,100.00 during their stay in Steamboat. Hmmmm, let’s see, for a $30.00 investment we receive a $1,100.00 return. I would call that a pretty good return on investment. I wish I could get the same on my stocks and bonds.
This is an issue that will greatly benefit all that live in the community and not just those who have a direct tie to the winter ski season. The City could see an increase in tax revenue with more people flying in allowing them to maintain the beautiful parks and trail system that we all enjoy. Businesses in this community are hit hard with requests for donations for worthwhile projects and non profits and a healthy business community means more support for these projects.
We have also improved the airport to the tune of around thirty million dollars over the past decade and now have a comfortable functional facility that can easily handle the increased flight loads. It is why Buyer’s Resource and its Agents have contributed time and money to support this initiative. We hope you agree and support 2B on this falls ballot.
October 25th, 2011
Steamboat Welcomes the USA Pro Cycling Challenge
August 23rd, 2011The inaugural USA Pro Cycling Challenge kicks off today with the prologue time trial in Colorado Springs. Steamboat Springs will host two of the seven stages of the professional road cycling race that is anticipated to bring over 1 million spectators to Colorado, making it the largest spectator event in Colorado history. With all three of the podium finishers from this year’s Tour de France confirmed to race, it should make for a very thrilling race to watch. The Pro Cycling Challenge will be the toughest professional road race ever held on American soil, reaching altitudes of over 12,000 ft. Below is a brief overview of the race.
1. Prologue Time Trial: This 5.18 mile individual time trial will begin in the Garden of the Gods Park in Colorado Springs. It will establish the order of placing for the riders going into Stage 1 of the race.
2. Stage 1: Salida to Crested Butte. This 102 mile course will cover Monarch Pass, the first climb of the race and will finish on the moderate climb to Mount Crested Butte.
3. Stage 2: Gunnison to Aspen: This is the “Queen Stage” of the race, covering 2 passes over 12,000 ft. in elevation. This stage will be TOUGH. Look for the overall contenders to make their move on this most difficult mouintain stage.
4. Stage 3: Vail Time Trial. Gaining 1,783 ft. in just 10 miles, this uphill time trial will definitely be exciting to watch.
5. Stage 4: Avon to Steamboat. After two difficult stages, riders will find no relief on the rolling terrain of this stage. Could be a good day for breakaway riders. You won’t want to miss the sprint finish in downtown Steamboat Springs!
6. Stage 5: Steamboat to Breckenridge. The highlight of this stage will be the double summits of Rabbit Ears Pass. Camping spots along the road are sure to be scarce as spectators prepare to get a good view of the climbing.
7. Stage 6: Golden to Denver. The champion of the first ever US Pro Cycling Challenge will be determined after this stage. Beginning with a large climb and descent into Denver, the stage will finish after 6 laps of a five mile circuit through downtown.
Who to watch for: There are many factors that will play into who to watch for in this race. Of course the top three from the Tour de France, Cadel Evans, Andy Schleck, and Frank Schleck have all proven their strength and should have a great chance at the overall win. Andy Schleck spent some time training in Steamboat before the race and will be sure to be motivated to finish out the season with a win after his 2nd place in the Tour. Americans Levi Leipheimer , Christian Vande Velde and Coloradan Tom Danielson will have the home turf advantage which is very important in this altitude. No matter who takes top honors in the race, the state of Colorado will be the real winner for having the opportunity to host this spectacular event.
The international exposure this race will bring to Colorado is immensely important for the state. Steamboat Springs has been given the honor of hosting not just one, but two stages of the 7 day event. The media coverage of our small town in Northwest Colorado is sure to boost interest to the area. For a community that relies so heavily on tourism, the attention this will bring to Steamboat is priceless.
Be sure to tune in to NBC or Versus to watch the race every day. If you’re lucky enough to be in Steamboat to watch the race live this Friday and Saturday, please drop by and see us at our office downtown. I’d love to talk cycling with you and share info on Steamboat Springs and the local real estate market.
Steamboat Social Media
July 12th, 2011By Ulrich,
Social Media. That’s about all we hear about anymore is Social Media. You know, Twitter and Facebook and Linkedin etc, etc, etc. I know these are great tools to stay in touch with friends and business colleagues on a daily, or even minute to minute, basis and it is fun reconnecting with old friends that we haven’t heard from in decades. We are also constantly being told that we have to participate to maintain relevant in our business although I personally find it annoying when I log onto Facebook and am bombarded with businesses flaunting their wares. I know that I should “unfriend” if it annoys me but I just can’t bring myself to “unfriend” anyone. Would they not like me anymore? Might they actually “unfriend” me in retaliation?
Anyway, back on topic. Let me tell you how Steamboat Springs conducts its Social Media. It’s called the Post Office or City market or even Ace hardware store. We are a community of Social people and genuinely like our fellow Yampa Valleyites. I love the fact that it may take me 45 minutes to buy a gallon of milk at City Market due to all the people that you need to say Hi to and catch up with. Haymaker Golf course or a “Strings in the Mountains” concert are also great venues to renew old friendships. Does it ever bother me? Only slightly when I am trying to enjoy one of our fabulous free concerts at Howelson Hill or at the base of the Ski area and I get so busy saying Hi to everyone that I miss the great music.
I had the privilege of showing Real Estate to a great couple who are contemplating retiring in Steamboat. After the first day of previewing properties we decided to meet for some cocktails. I had suggested the Sweetwater Grill as they have a fun outdoor setting overlooking the Yampa River. Once we sat at our table it didn’t take long to notice that we knew many other couples and groups and the socializing began. I’m pretty sure that my clients believe that I had planted these people ahead of time.
So why don’t you come on up to Steamboat and enjoy the summertime and get in some great Social Mediaizing! Oh, and don’t forget to stop by our Real Estate Information Center on 56 9th street adjacent to the “Off the Beaten Path” book store.
Active listings of bank-owned properties are decreasing
June 16th, 2011Foreclosure properties — bank-owned homes and those in some stage of foreclosure — continued to make up a large number of all home sales across the country. And with discounts averaging 27% below the average price of homes not in foreclosure, they weighed heavily on prices. Below is an outline of the Q1 2011 foreclosure sales in Colorado and the discount these distressed properties commanded (source MSN Real Estate).
State: Colorado ———– No. of sales: 4,032
Avg. sales price: $176,291 ———- Avg. discount: 29.52%
In Steamboat:
Discounted prices coupled with competitive loan conditions attract buyers to distressed properties in Steamboat Springs. More and more units are sold and the inventory of active bank-owned properties continues to decrease. The numbers tell the story: In the first quarter of this year, 45 bank-owned properties were sold, a significant increase from the first quarter of 2010 (with only 10 bank-owned properties sold). Accordingly, the number of active listings of bank-owned properties has been declining steadily since the beginning of 2011. The month of January was marked with an average of 50 bank-owned residential units on the market. By the end of March, this number has decreased 26% to only 37 residential bank-owned listings. Currently there are only 29 bank-owned residential units and 12 bank-owned land listings.
If you would like to learn more about current foreclosures, call an agent from Buyer’s Resource Real Estate of Steamboat at 970.870.8885. You can also pick up an updated foreclosure list from our office at 56 9th street, downtown Steamboat Springs, next door to the Off the Beaten Path Bookstore.
To receive a weekly foreclosure list update via email, please send a request to Gery Smith
Source: MLS Steamboat Springs and MSN Real Estate
On your Mark, get Set, Summer!!!
May 30th, 2011By Ulrich,
Once in awhile in the Yampa Valley we skip spring and go directly from winter to summer. It seems that 2011 is just such a year. A record snowpack will soon be facing off with 70 degree temperatures. This hasn’t deterred the locals from taking advantage of what activities are available. The bike trails have been busy and many folk continue to hike up the mountain for a few last turns. The golf courses are now open and, if not working on the yard, a nice hike might be in order.
The high water has seen the kayak community out in force. In fact folks from all over came to celebrate our annual Yampa River Festival. The river is roaring, and not even close to its peak, which led to great entertainment watching these experienced paddlers work their way in and out of holes and paddling upstream to enter the slalom course. This Memorial weekend event is the kick start to summer. Next Sunday will be the umpteenth annual marathon, half marathon and 10k fun run. This event fills up faster and faster every year with repeat runners who once came by themselves and now are bringing their families along to enjoy a weekend in the mountains.
This is just the beginning of a very active and fun filled summer ahead. There is just so much to do and enjoy in “Steamboat in the Summertime”. It is also why so many yearn to live in our special community. The quality of life and opportunities to recreate and enjoy a healthy lifestyle are also reasons why properties hold their value better than many other areas of the country. As anticipated entering our prime selling season, new listings are showing up like the summer flowers and it is an excellent time to look for your dream property. Your Steamboat Real Estate search can be used as a great excuse to get back to Steamboat. Let us know when you might be in the area or just drop in to our great new Real Estate Resource Center on 56th street to browse around and say Howdy.
Yampa River
May 20th, 2011
While enjoying extended backcountry spring skiing, Routt county residents also worry about a possible record runoff and flood danger. The total snow accumulation at Buffalo Pass has approximately 72.6 inches of water content which exceeds the previous record reading of 71.7 inches measured in 1978. This sets an all-time state record for total snowpack at any individual site in Colorado.
Current Yampa River water level at the 5th street Bridge, downtown Steamboat Springs, is 4.77 feet. Record high of 8.90 ft. was registered on June 13th, 1906. Two of the main factors that will indicate flood danger are air temperature and precipitation. A constant temperature above 32o F ensures an around the clock melting. Dream Island Mobile park residents and many who live near Yampa River already have started preparing for expected flooding. If you need more information on how to protect your home, you can view the High Water Preparedness Guide that is published on the Routt county web site: http://www.co.routt.co.us/commissioners/Emergency/High%20Water%20Preparedness%20Guide%20-%20Routt%20County%20-%20April%202011%20-%20Rev%2004-01-2011.pdf
Flood Categories (in feet)
| Major Flood Stage: | 9.5 |
| Moderate Flood Stage: | 8.5 |
| Flood Stage: | 7.5 |
| Action Stage: | 7 |
To browse the National Weather Service and to view the recent forecasts for Yampa River water level, go to: http://water.weather.gov/ahps2/hydrograph.php?wfo=gjt&gage=stmc2
Water level update can be obtained from the following web site: http://waterdata.usgs.gov/co/nwis/uv/?site_no=09239500
Don’t forget to stop by our office and pick up our updated foreclosure list
Buyer’s Resource Real Estate Information Center
56 9th street, Steamboat Springs, CO 80487
Next door to the Off The Beaten Path Bookstore
Foreclosure List
March 31st, 2011Updated foreclosure lists available at Buyer’s Resource Office.
Steamboat Springs is a home to over 12,000 people and an attractive vacation place for many more. Tourist spending and number of visitors are in direct correlation with employment rates and economic development for this beautiful mountain town. These factors also affect activity in the real estate market.
The increased number of visitors in Steamboat follows the nation trend of growth in travel spending. The US Bureau of Economic Analysis reports growth in the travel and tourism spending in third quarter of 2010. Real spending on travel and tourism increased at an annual rate of 8.0 percent in 2010:3, following an increase of 3.4 percent in 2010:2. By comparison, real gross domestic product (GDP) increased 2.5 percent in 2010:3 after increasing 1.7 percent in 2010:2. While tourism spending outpaced overall growth in the economy, it still remains below its peak set in 2007:3.
How is Steamboat affected? Steamboat Springs received more visitors than expected due to record snowfall, great lodging rates and increased tourist spending. Accordingly, real estate market is seeing an increased interest from buyers. With attractive property prices and abundance of listings to choose from, more and more people look at Steamboat as a great real estate investment.
Referring to February 2011 data, real estate market shows that units sold were 105 and up 34% from the previous February 2010 (78 units sold). In addition, of the 34 Residential Improved Units sold for this February, 24 of those were sold for $500,000 or less. Compared to February 2010, there were 20 Residential Improved Units sold and 7 of those were sold for $500,000 or less.
With the increased number of foreclosures in Steamboat, bank owned properties are an attractive buy for many buyers. February 2011 saw 12 Bank sales to compare with only 4 in February of 2010. As of March 30, 2010, there are 60 bank owned listing – a significant increase since March 2010 and 30 listings (MLS source).
Visit Buyer’s Resource Real Estate information Center to pick up a detailed foreclosure list and browse our huge inventory of market statistics. We are open from 8:30 am to 7:00 pm Monday – Saturday and from 10:00 am to 4:00 pm on Sundays.
Think Snow!
Ref: US Bureau of Economic Analysis
Land Title
Marching in the Boat
March 8th, 2011By Ulrich
With just over a month to go in the ski season we have just hit the 350 inches of snowfall mark. This will pretty much assure us of another 400 inch season which would mean that three out of the past four years have hit the 400 inch level. The skiing is incredible and we have had some beautifully sunny days.
March means spring skiing as well as the time of year when we tend to see increased inventories, particularly in the condominium market, as sellers are hoping to sell to maximize their rental income prior to the relatively quiet stretch between April and mid June. Our market has seen marked improvement over the same period last year and buyer’s are taking advantage of the great values. We are seeing an average of two properties per day going under contract. January and February saw a 50% plus increase in number of closings over the same period in 2010.
Yet there is no need to hit the panic button as there is still a lot of inventory to be absorbed. We anticipate a similar year in short sales and foreclosures but anticipate that market is also improving. Also remember that foreclosure properties also affect asking prices of properties that are not distressed.
March will also bring longer days as daylight savings kicks in and we will be celebrating St. Patrick’s Day with a torchlight parade and fireworks on the mountain. With this much snow there will be plenty of good skiing in April as well and with virtually no one else on the mountain. The moisture content in the snowpack is also above average so we should see a great kayaking, river rafting and, eventually, tubing season.
We hope that you will take advantage of all that Steamboat has to offer and please stop in and see our great new Real Estate Gallery.
It’s That Time of the Year
March 3rd, 2011by Doug
Over the past several years, some things have changed in the ‘new economy’, while others have not. Access to financing for some of the different property types in our resort market has drastically changed. Foreclosures and short sales are making up more of our market, as well.
One thing that hasn’t changed, however, is the interest in property this time of the year. As soon as the calendar page is ready to be turned to March, buyers start appearing, and that is one thing that has not changed. This past week I had two different clients make offers on two different properties, and we had to compete with another offer. Who would have thought that that would exist in this market? However, they were on good properties that were well priced and offered good value, and they were not even bank owned properties! We lost one to a higher offer, and we’re still working on the other.
Over the past two weeks, the Steamboat Springs MLS posted 27 properties that went under contract. That is an average of nearly 2 a day…strong activity for the current economy. Could this be an indication that the market is turning? Well, in the first two months of 2010 the Steamboat Springs MLS posted 55 sales. This year it recorded 88. It does appear buyers are coming back in the Steamboat Springs real estate market.
If you are also looking to take advantage of the current buyer’s market, here are a couple of my personal favorites:
A three bedroom / two bath cabin right in the middle of towering pines and old-growth aspen with two outbuildings on 16 acres in Strawberry Park and Butcher Knife Creek flowing through the property. Listed before the bank took it back at $1,325,000, now bank-owned and listed at $659,000. It does need some work, but well worth the price! See all the details and pictures on our Property Search page with MLS# 130658.
Quality three bedroom / three bath, 2,203 square feet Cross Timbers Townhome fully furnished and ski area views! Listed $100,000 less than the closest priced competition. $699,000. See all the details and pictures on our Property Search page with MLS# 129782.
Ski in / Walk out one bedroom and bath Storm Meadows condo for only $296 per square foot. Great rental and views. $175,000. See all the details and pictures on our Property Search page with MLS# 130684.
The Google Factor and other things that hurt Condo financing in Steamboat
February 18th, 2011Part I of a II part series on The Condo/Hotel financing challenge in Steamboat Springs Colorado:
Greetings Susana,
A quick question for you: One of the Homeowner’s Association board members for our Steamboat Springs Colorado condominium saw that our condos were listed as a Condo/Hotel, and we know that this makes it hard for someone to buy or sell a condominium in Steamboat Springs. Do you know what we can do to get that listing changed? Who do we have to contact or what?
Thanks. BG
Hi BG,
You had a quick question and I have a long answer… so bear with me.
First off, was there an actual place that the board member saw it “listed” as a hotel/condo? If there was, that would give me more information to go on.
There is no universal Condo/Hotel list
Otherwise, to my knowledge there is no actual Universal List that ALL lenders refer to. Individual lenders may have created their own lists.
Underwriters look at the HOA Query Letter
How the lenders arrive at that information is via the Homeowners Association Query Letter (it has some other technical name) that is sent out to the HOA manager to be filled out as part of the lender’s underwriting process. One of the questions is whether there is a front desk. Another is whether nightly rentals are allowed. Having a front desk may lead to the classification of Hotel/Condo by that lender. For other lenders, allowing nightly rentals in the complex may also lead to that classification. Some lenders have gone so far as to Google the complex’s name to see if they could book a nightly rental in the complex. If it comes up on Google as a nightly rental possibility they classify it as a Condo/Tel.
Selling condo mortgages on the secondary market is problematic
The problem with the condo/tels, as far as lenders are concerned is that the lenders (especially in the case of lenders via Mortgage Brokers) are unable to sell the mortgage on the secondary market. Fannie Mae is now the biggest buyer of mortgages on the secondary market and they believe (wrongly, we believe with regards to the ski resort market) that condo/tels are a greater risk.
Wells Fargo is Lending
Locally, Wells Fargo, for one, is lending on projects we normally would think of as condo/tels ( front desk, nightly rentals which are strongly marketed to Steamboat Springs’ visitors, shuttle service, etc.). They lent on a unit at The Lodge, a condominium complex across the street from the Gondola at the Mt. Werner ski area, for a client of mine recently and The Lodge is a full blown condo-tel. Wells Fargo actually has its own classification system, and set of requirements which I’ll get into in detail in Part II. My client had to put more money down than the conventional 20% – 30% I believe – and there were a few more requirements, but nothing major. And he still got a good rate.
The Google Factor
The lending market has been a constantly moving target since the start of the recession. A buyer now a days will have a harder time getting lending on just about any condo in town (mostly because most condo complexes in Steamboat have at least one unit that is available for nightly rental when Googled, and condos nationally still have the reputation of being located mostly in resort areas) versus a townhome. It is a sad fact, which the National Association of Realtors is currently fighting in Congress.
HOA dues delinquency rate means death to loans
The other thing that makes it difficult to get lending on a condo project is if there is greater than a 15% delinquency on HOA dues by the homeowners. Your condominium development, as far as I know, doesn’t have this problem. A few other condo projects, especially those with a lot of foreclosures and short sales, do have this problem. It’s another one of the questions that is asked in the HOA Query letter by the underwriters, and if the “Yes” box is checked, you can pretty much forget getting a loan on a condo in that complex.
Bottomline:
It is harder to get lending on condos in Steamboat than on townhomes or single family homes, period. But especially if there are any units being rented out on a nightly rental basis. It is harder still if you have an onsite front desk (which yours does not) and almost impossible if there is a greater than 15% delinquency in HOA dues (which I believe yours does not). A buyer may have to put more money down than the standard 20% , may have to meet a few other requirements, and may have to pay a slightly elevated interest rate on the mortgage to buy a condo in Steamboat, but that’s about it.
Sunray Meadows in Steamboat Springs changed their bylaws last year to prohibit nightly rentals, just to avoid this condo/tel lending problem. But it was later overturned by the Homeowners who were trying to sell their condos, with the argument that NOT being allowed to rent their condos on a nightly basis was discouraging buyers who wanted the nightly income! Go figure!
Continue on to Part II (on Susana Field’s SteamboatGal website): Wells Fargo Home Mortgage Plays White Knight in Steamboat Springs
