Archive for the ‘Market Trends’ Category
Sunday, June 27th, 2010
By Susana Field, The Steamboat Gal
On June 8, 2010 I attended Alpine Mountain Ranch & Club’s “Insight For the Future” , a presentation to the community held at the Strings’ Pavilion. In Part 1, I shared my notes on why Vail’s former CEO Andrew Daly favors Steamboat Springs as a great real estate investment. Here in Part 2, as promised, are my notes on why David Belin’s research findings point to Steamboat as a positive opportunity for value and value preservation.
Data David Belin Looked At:
- Looked back 20-30 years (with emphasis on recessionary impacts)
- Average Sales Price
- Total Number of Units Sold
- Total Volumn (Cost) of All Units Sold
Findings
Average sales price starts to rise a year after the end of a recession. (The current recession was declared over in June of 2009.)
- Aspen was the exception: Average sales price continued to rise during the recession.
- Steamboat’s average sales price peaked in 2008.
- Breckenridge/Keystone and Steamboat have stayed similar over time.
- Steamboat’s average sales price in 2009 was the same as Vail and Telluride in 2004.
- Steamboat’s didn’t rise as sharply as some other resort towns after previous recessions, but it also didn’t fall as much during a recession.
Total dollar volumn also rises about a year after a recession.
- Steamboat’s total dollar volume sold is currently back to 2003 numbers.
- We didn’t experience a big run up and crash like other mountain resorts did.
Number of total units sold typically recovers pretty quickly.
- Unfortunately, during the 2001 recession, Steamboat’s total number of units sold didn’t come back until 2004.
- 2005-2007 the numbers were stable.
- 2008 fell sharply, with 2009 not as sharp.
- Number of units sold in Steamboat currently outpaces Aspen and Jackson Hole.
- Vail’s and Jackson Hole’s numbers are the smallest since 1990 when records first bacame available.
- Park City had a huge rise and a huge fall.
Conclusion: Steamboat provides greater value than the other resort towns.
Bill Butler, co-developer of Alpine Mountain Ranch and Club, shared his observations of the data:
- Park City is the most beneficial benchmark for Steamboat.
- Prices have not receeded here compared to Park City and Vail.
- Pricing will hold and continue to grow.
- The Billion dollars in recent Steamboat developments has had a positive effect, as seen by the break out in prices in 2007.
- Compared to other mountain resorts, Steamboat is a late bloomer.
Posted in Market Trends, Real Estate Opportunities | No Comments »
Friday, June 25th, 2010
By Ulrich
I had the opportunity last week to represent the Steamboat Springs Board of REALTORS at the National Association of REALTORS (NAR) Resort and Second Home Symposium (RSPS) held concurrently with the Western Mountain Resort Alliance (WMRA) semiannual meeting held on June 13-18 at Lake Tahoe. Besides being able to enjoy the beautiful Lake Tahoe area I found the Symposium and meeting educational and interesting.
During the two day RSPS Symposium there was several opportunities to speak with various persons from NAR including the President Elect, Ron Phillips. Ron comes from a six person firm in Rhode Island. Ron is a third generation REALTOR and quite available to his constituency. Throughout the Symposium members of WMRA spoke out about the lending issues that are plaguing all of our resort areas. As President of WMRA Dennis Hanlon would later state “NAR finally gets it”!
This became evident as during his opening remarks Mr. Phillips stated that a leadership team from NAR would be visiting all five major lending institutions within the next month to urge them to increase their lending practices. He informed us that 20 years ago the major banks conducted less than 10% of the national mortgage business. Now the big five hold 73% of all mortgages. NAR is also working on Congress to extend the June 30 deadline to close on a first time homebuyer’s tax credit property. There are currently 180 thousand properties nationwide that are at risk of missing this deadline.
We were also given a presentation by NAR’s Chief economist Lawrence Yun. There are several economic indicators that point to a slow but steady recovery. He pointed to items such as the GDP growth along with job market stabilization and recovery of the Stock Market. Having said that there are still 8 million jobs that need to be absorbed as well as high Real Estate inventories. The forecast is for this process of job and property absorption to take up to four years to fully recover. During most strong economies the United Sates will average about one million housing starts per year. The current forecast for 2010 is less than half of that. California seems to be leading the way with several areas showing raising prices and inventory dropping.
He forecast that the interest rates will remain low and stay between 5% and 7% over the next five years. When asked about inflation Dr. Yun’s opinion was that this was currently not a credible threat. The dollar is viewed as a strong and stable currency and worldwide is used by countries as currency stabilization. As long as the confidence in the dollar remains he does not see any significant sell off which would lead to inflation.
The Western Mountain Resort Alliance will continue to spearhead the effort to get some legislation passed to change Freddie Mac and Fannie Mae’s rules to allow for condo financing and/or ask for a temporary exemption like they allowed in various counties of Florida. The biggest hurdle is the perception that the legislators are simply clearing the way to allow second home and investment lending for the already rich. In the meantime we are also working through NAR to get the lending institutions to be more responsive to condominium lending. As I pointed out the issue is not just that we have well qualified Buyer’s who wish to purchase but also that some of the Seller’s of these properties HAVE to sell.
We have been very fortunate in the Yampa Valley in that our distressed properties consist of less than 1% of our market. The owners of these properties have been able to survive but now need to sell. I would suspect that the last thing that banks want is another wave of delinquencies.
I enjoyed my stay as well as the Symposium but I have to tell you there is nothing better than arriving back home in Steamboat.
Posted in Financing, Market Trends | No Comments »
Thursday, June 10th, 2010
Wednesday I attended a presentation hosted at the Strings Pavilion by the developers of the Alpine Mountain Ranch & Club here in Steamboat. They shared information pulled together by statistical experts from over thirty years of actual property sales history in mountain resort towns. In this blog I’ll share with you the notes I took.
Part 1: How is Steamboat Viewed in the Ski Industry?
Andy Daly made the Opening Remarks. He’s a Former President and CEO of Vail Resorts, and currently a co-developer of Alpine Mountain Ranch & Club. He addressed how Steamboat is viewed, why he personally chose to develop in Steamboat, and why he’s feeling bullish. He spoke about the four A’s that Steamboat has.
The four A’s:
1. Assets
In addition to Steamboat being a world class ski resort, Steamboat has an incredible sense of community with people really committed to it. The services are excellent and the altitude of 6700 feet is a much more comfortable altitude to live at than Vail at 8120 feet or Copper Mountain at 9700 feet.
2. Amenities
The western heritage of Steamboat is evident and thoroughly enjoyed via the genuine rodeo that goes on downtown every weekend through the summer. Unlike other resorts that are strictly resorts, Steamboat has a diverse community due to its agricultural and mining industries. Facilities with programs that promote cultural and intellectual stimulation. Great community activities like the Winter Carnival.
3. Academics
Steamboat has a stable work force to supply services. The Winter Sports Club is very family oriented and along with its location at the city-owned park Howelsen Hill provides opportunities for people of all ages.
4. Access
There’s direct air service to and from numerous cities to Steamboat, and the International airport in Denver is just 3.5 hours’ drive away, with daily shuttle services available.
Andrew Daly wrapped up his opening comments by stating that the ski area’s owners Intrawest and Fortress just put together a four-year debt deal and had a great year despite a shortage of snow in early season. He went on to say that the average Steamboat sale is at $270 per square foot whereas Vail’s is $412 a square foot, and that Steamboat had 312 transactions in the first quarter which is relatively high compared to otherski resort areas.
Stay tuned for Part 2 when I share with you the researcher’s findings.
Tags: alpine mountain ranch & club, Andrew Daly, buying steamboat springs real estate, Fortress, Intrawest, stamboat springs real estate, Steamboat economic recovery forecasts, Steamboat's Winter Carnival
Posted in Market Trends, Real Estate Opportunities, The Steamboat Lifestyle | No Comments »
Monday, May 3rd, 2010
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/
Posted in Market Trends, Steamboat Condominiums | No Comments »
Monday, March 29th, 2010
By Susana
A client of mine receives our automatic listing alerts. She’s hoping to buy a two-bedroom condominium in the $200,000 – $300,000 price range close to the Steamboat Springs ski area, and one came up that she expressed interest in. She wanted to know what the HOA fee was, as well as the average rental income for 2009.
Built in 1974, the 834 square foot condominium has HOA fees of $1016 quarterly. These are low, especially considering the HOA pays for the gas heat, cable, high-speed internet, water, sewer, shuttle service, landscaping, insurance, snow plowing and shoveling, trash, building maintenance, capital reserves and the clubhouse with its two hot tubs: one indoors and one out.
Why it’s so low is that a communications company pays the homewoner’s association about $20,000 a year to keep a small tower on the buildings’ roof. That income helps out considerably, especially since it is a small, one-building complex.
Rental Income? Well, in 2009 the Gross Revenue average for their two-bedroom units was approximately $10,576.
This amount is before the management company takes its split – which for this particular complex is 42% to the management company, 58% to the homeowner. So, had my client been the owner she would have made roughly $6134 in 2009, which would’ve paid for her annual HOA fees ($1016 x 4 quarters = $4064), her property taxes ($721.72), and probably her electric bill ($1348.28), which is the only other bill she’d have.
Still, the management company told me this is quite a change from the heyday of 2007, when the same unit would have had a Gross Revenue roughly in the $30,000s. A few things have happened since 2007: the recession has brought businesses down by 40-50%, and there are a number of new luxury condominiums which have come on the market to compete for the fewer visitors.
We advise clients to buy vacation homes for their personal enjoyment. And they can also still be beneficial for tax purposes should their accountant so advise. Cash flow and appreciation, on the owther hand, may or may not happen depending on one’s lenght of time in the market, amount of money down, etc.
Talk to your accountant. Talk to your loved ones – those that will likewise be enjoying the vacation home and their vacation time there with you. And then talk to us, and we’ll go out of our way to help you find the best property for you, at the best price.
Posted in Buying Tips, Market Trends, Steamboat Condominiums | No Comments »
Monday, December 28th, 2009
First and second hand accounts lead me to believe the Steamboat Springs real estate market may be on the mend. Personally, the past few months I have been very busy, not only from an inquiry and showing perspective, but also from a contract perspective. Talking to other brokers in our market, they have also recognized an increase in activity…and this is at a period of the year that has historically been a slow time in the Steamboat Springs market.
Those who are buying Steamboat real estate now are buying at the most opportune time they have had in a number of years. It is obviously hard to tell if even better times are ahead, but those who are making their move now are reaping great benefits that will be admired and enjoyed for years to come.
If you are looking for a great buy today in our market, consider this beautiful, foreclosure / bank owned home in Dakota Ridge with over 6000 sq.ft. of finished living space in mint condition and recently upgraded bathrooms, paint and light fixtures. The kitchen offers a center island, new stainless appliances, granite counter tops, and a prep sink. The living room and dining room have beautiful hardwood floors and a full wall of windows to enjoy the views of the Steamboat Ski Area. The library/study is just off the living room with an attached bath, fireplace and beautiful cherry built-ins. Upstairs are two master suites (one with fireplace) and a large media/theater room with built-in cabinetry and access to the hot tub. Downstairs features Mother-in-Law quarters with Murphy bed, additional bedrooms and laundry room complete with new washer & dryer. The home has central air conditioning, an irrigation system and the most incredible views you’ll find! The bank has just reduced the list price on the beautiful home from $1.8m to $1.695m!
Please give us a call for additional information on this spectacular property.
room have beautiful hardwood floors and a full wall of windows to enjoy the views of the Steamboat Ski Area. The library/study is just off the living room with
an attached bath, fireplace and beautiful cherry built-ins. Upstairs are two master suites (one with fireplace) and a large media/theater room with built-in
cabinetry and access to the hot tub.
, carpet, paint and light fixtures. Kitchen offers a center island, new stainless appliances, granite counter tops, and a prep sink. The living room and dining
room have beautiful hardwood floors and a full wall of windows to enjoy the views of the Steamboat Ski Area. The library/study is just off the living room with
an attached bath, fireplace and beautiful cherry built-ins. Upstairs are two master suites (one with fireplace) and a large media/theater room with built-in
cabinetry and access to the hot tub. Downstairs features Mother-in-Law quarters with Murphy bed, additional bedrooms and laundry room complete with new
washer & dryer. The home has central air conditioning, an irrigation system and the most incredible views you’ll find!
, carpet, paint and light fixtures. Kitchen offers a center island, new stainless appliances, granite counter tops, and a prep sink. The living room and dining
washer & dryer. The home has central air conditioning, an irrigation system and the most incredible views you’ll find!
Tags: dakota ridge, steamboat springs foreclosures, steamboat springs real estate
Posted in Buying Tips, Market Trends, Real Estate Opportunities, Steamboat Single Family Homes, Uncategorized | No Comments »
Wednesday, December 9th, 2009
By Susana Field
The average 30-year fixed-rate mortgage dropped to a new record low of 4.71% this last week, according to Freddie Mac. The week before it was 4.78%, while last year the average for a fixed-rate, 30-year mortgage was 5.53%.
The first-time homebuyer’s tax credit has been extended through next spring, and it was expanded to include folks that have lived in their primary home for at least 5 years and wish to move up.
We are also seeing more and more housing deals come on the market here in Steamboat Springs, Colorado. And buyers are taking advantage of this by gobbling up Steamboat’s housing opportunities.
This October Steamboat Springs saw 20% more deals close than a year-ago October. And although the number of deals was up, amazingly the total amount of money spent on those deals was down 33% this year from last. Twenty percent more deals, with a 33% price drop since last year!
November of 2009 saw 58% more deals close than November of a year ago, with a total price increase of only 17%.
Low mortgage rates, tax credits, and great prices! Maybe it’s time to… “Have yourself a Merry Little Christmas…” with a Steamboat house key under the tree. Give us a call and we’ll help you go shopping.
Tags: Mortgage rates, Steamboat Springs CO real estate
Posted in Financing, Market Trends, Real Estate Opportunities, Taxes | No Comments »
Monday, November 2nd, 2009
That is the title of my new quarterly newsletter, Steamboat Real Estate Analyst. There were some very revealing happenings in the market that have happened over the past nine months. To find out all of the interesting facts, please click “Buyer’s Toolbox” above, then the “Monthly Newsletters” link to get the inside scoop and read the newsletter. Or, click here.
Are you looking for a great foreclosure? Check this one out:
Affordable home in the prestigious Dakota Ridge development with over 6000 sq.ft. of finished living space in mint condition and recently upgraded bathrooms, carpet, paint and light fixtures. Kitchen offers a center island, new stainless appliances, granite counter tops, and a prep sink. The living room and diningroom have beautiful hardwood floors and a full wall of windows to enjoy the views of the Steamboat Ski Area. The library/study is just off the living room withan attached bath, fireplace and beautiful cherry built-ins. Upstairs are two master suites (one with fireplace) and a large media/theater room with built-incabinetry and access to the hot tub. Downstairs features Mother-in-Law quarters with Murphy bed, additional bedrooms and laundry room complete with newwasher & dryer. The home has central air conditioning, an irrigation system and the most incredible views you’ll find!
Give us a call to find out more about this beautiful, bank-owned property now listed at only $293 per square foot, or $1.8m.
Tags: steamboat real estate news, steamboat springs foreclosures, steamboat springs real estate
Posted in Best Buys, Market Trends, Quarterly & Annual Reports | No Comments »
Friday, August 7th, 2009
By Susana
The real estate market may be slower than usual right now in Steamboat Springs, Colorado, as in most of the nation (world?) but in my opinion it won’t be like that in Steamboat for long. And I’m even willing to place some bets. (Ask my husband and he’ll tell you I only place bets when I know I’m going to win – so watch out!)
What, you may ask, do I base this on? One word: Technology. And the human need for sanity. (Okay, seven words.) More specifically: technology and how we humans are now interacting with it; technology and the impact that it is having, and will continue to have at an accelerated rate, on our society, our culture, our way of working.
Sure Steamboat is expensive, but not that expensive. A lot of people have jobs which produce the income needed to be able to buy a decent home here (and the necessary toys required to enjoy a ski town). So, what’s kept them away from Steamboat? Their being tied to metropolitan areas for work.
The internet and cell phones started changing that already a few years back. We apparently already have 700+ people living here that have “Location Neutral” jobs. What I’m seeing though are all the jobs that are being created by these new technologies that are inherently Location Neutral. As manufacturing jobs leave our nation (of which there never were very many in Steamboat anyway), Location Neutral jobs are taking their place. And what better place for people to live, when they can choose ANYWHERE to live, than Steamboat?
If you’re sitting in front of a computer all day, the human need for sanity (in my opinion) requires beautiful vistas to be right outside, fresh air, and outdoor exercise.
When you spend your days working within the virtual realities of cyberspace, the human need for sanity demands that we have face-to-face interactions with people on the street and the grocery store who know our name and our history. What does Steamboat have if not an extraordinary community within a lovely, user-friendly setting?
Okay. Which way are you going to bet? Show me your money.
Tags: real estate market trends in Steamboat Springs colorado, ski resort lifestyle, technology affects on lifestyle
Posted in Location, Market Trends, Real Estate Opportunities, The Steamboat Lifestyle | No Comments »
Monday, July 6th, 2009
By Susana Field
So what’s been selling in Steamboat Springs over the first half of 2009?
According to our Multiple Listing Service stats: 53 residential units sold, of which 15 were single family homes, 15 were townhomes and 23 were condos.
Let’s take a look at the single family homes first:
The least expensive home which sold in the first half of the year was in the neighborhood called Steamboat II, located west of town. A lot of the houses there were built in the 1970s and are of modest size, so it’s no surprise that is where the least expensive purchase occurred. It was a 1771 square foot, three-bedroom home with two bathrooms and a two-car garage. The asking price was $489,000 and it sold for $450,000.
The most expensive single-family home sale was for an 8536 square foot, 5 bedroom, and five bathroom home with a two car garage, located in the gorgeous valley of Strawberry Park right outside of town.
And town homes?
The least expensive town home which sold was an older town home above town in a small development called Suncrest. It was a 1267 square foot, three bedroom, two bathroom and one-car garage home, and sold for $295,000 after an asking price of $329,000.
The most expensive town home sold for full price at $1,995,000, had four bedrooms, three bathrooms and a two-car garage, and was located in the beautiful, new Stonewood development near the ski area.
Now condos:
Of the 23 which sold, the one with the smallest price tag sold for $180,000 ($205,000 asking price). It was in Walton Village, in what’s considered The Mountain area, to the east of the ski area. At 565 square feet it has one bedroom and one bathroom.
The most expensive condo sold for $1,118,250 (asking price of $1,245,000) and at 1836 square feet, it has three bedrooms, three bathrooms and a one-car garage. This one is located at the new Trappeur’s at Bear Lodge very close to the ski area base.
And contrary to what you might be thinking, these were not all cash sales! Most of these were bought with financing so yes, people are getting loans out there – those lucky devils!
Let us know how we can help you be one of them!
Posted in Market Trends, Steamboat Condominiums, Steamboat Single Family Homes, Steamboat Springs Real Estate - General Information, Steamboat Town Homes | No Comments »
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