Last week I received a call from Tom Ross, the real estate editor for the Steamboat Pilot asking for some insight to the condo market. He read a report by the National Association of REALTORS stating that in the resort real estate market, condos represented about 11% of overall market share, whereas single family homes captured 71%.
Steamboat is not close to those numbers. In our local market, I have found single family residences (sfr) and condominiums represent 25% of the market, each. The reason Steamboat condos are so much higher in demand than single family homes is most likely due to the desirability of being close to the slopes (where condominiums are clustered) and the price difference between sfr’s and condos.
Tom’s call also led me to see what has happened in the condo market over the past several years with values. With the drastic change in the economy over the past several years, one would think that the price range people would be looking to purchase within would shift downward, with the economy. However, it was surprising to see that the price range in which sales are happening today has remained unchanged from the heyday of Steamboat real estate. In the past four years, the most popular price range that Steamboat condo buyers were focussed on was between $200,000 to $300,000. The majority of purchases in the first quarter of 2010 were also in that range. However, those buying in this price range were able to buy 19% more condominium for their money than in times past. On a dollar per square foot basis, buyers in the $200,000 to $300,000 price range were paying $291 per square foot for their abodes between 2006 and 2009. In the first quarter of 2010, they paid $244.
The price range that showed buyers getting the most property for their money was $400,000 to $500,000, where buyers were able to buy 43% more property (from $403 per square foot to $282) with the same amount of money as in the time period between 2006 through 2009.
If you would like to see more information about my analysis, please give me a call, toll free, at 877.970.8885. The newspaper article can be found at http://www.steamboatpilot.com/news/2010/may/02/steamboat-bucks-vacation-home-trends/
