Archive for the ‘Market Trends’ Category
Thursday, June 18th, 2009
By Susana
My husband watches Wall Street’s Opening Bell on the television every morning. As the trading day opens, his laptop opens. And he stays glued to the market’s gyrations for a good part of the remainder of the day. The Dow’s graph is created moment by moment and with a click of the mouse he can see back 3 months, 1 year or ten.
Following the local Steamboat Springs, Colorado’s real estate market is not so immediate. Yes, through our MLS system we can follow on a daily basis the individual properties that have sold, been withdrawn from the market, had their price reduced or just been listed, but to get a graph we have to wait until the middle of the following month.
So today we received from Bruce Carta at the Land Title Guarantee Company the stats for May 2009, year-to-date, and comparisons going back to 2004. And here’s the skinny…
Year –to-date the dollar sales volume is at 30.77% from 2008 (ouch), which was already down at only 49% of our previous, albeit banner, year 2007 (double ouch). The super ouch is that this year’s year-to-date sales volume is at only 54% of 2004! And that’s as far back as the data goes.
And what about the # of real estate sales in Steamboat Springs (vs. $ of sales)? Equally miserable. L Year-to-date, including an unusual blip of 234 timeshare sales, we’ve had 382 sales (only 148 non-timeshare sales!). 2008 year-to-date had 572 sales, 2007 had 1094, 2006 had 1543 (whew!), 2005 had 960 and 2004 had 617!
How many properties are currently for sale? Roughly 1213 residential units (not including timeshares), 834 land parcels and 595 Commercial listings.
At this rate it will take us seven years to dispose of all of this real estate! And that’s if no new listings come on the market!
I don’t know enough about the intricacies of the stock market. Are there ever stocks that just sit there and take forever to get bought, at whatever the price? Or does the price just have to get low enough for someone to finally buy? Of course stock investors don’t have to deal with finicky mortgage lenders. Hmm…
Posted in Market Trends, Supply & Demand | No Comments »
Wednesday, June 3rd, 2009
By Doug
Have you checked out our May newsletter yet? The focus for this month was looking at the residential market in Steamboat Springs, and how it has fared over the past five years. I must say that I was very surprised in the findings. Keeping in mind the research was done on what has sold and not what is listed, the number of sales has dropped considerably, but the price at which homes, town homes and condominiums in Steamboat Springs have been purchased for has actually maintained itself quite well in these tough economic times. To see the report and all of the great information, please check out the “Monthly Newsletters” section of the “Buyer’s Toolbox” link above.
Regarding the residential market in Steamboat Springs, if you are looking for a great lot to build a single family home, consider this “Best Buy”:
Great lot ready to build with a wonderful location in Wildhorse Meadows. Walking distance amenities include the gondola, tennis center, athletic fields, Strings in the Mountains Center, and more! The lot borders open space and offers Ski Area, Emerald and Flat Top Mtn. views. In the future, Wildhorse owners will enjoy use of The Ranch House, Wildhorse Athletic Club Steamboat Country Store and trail system. All utilities are to the lot line. In a neighborhood that already has a spec home setting the standard at $3.295m, this price, of $495,000, is a great value (lot values typically represent 25% to 35% of total value).
If this property sounds like something you are interested in, give us a call / email today. We’d be happy to provide you with pictures, maps, etc and answer any questions you may have.
Tags: steamboat condominiums, steamboat homes, steamboat real estate, steamboat town homes
Posted in Market Trends, Steamboat Condominiums, Steamboat Single Family Homes, Steamboat Springs Real Estate - General Information, Steamboat Town Homes | No Comments »
Monday, May 4th, 2009
By Susana Field
Bruce Carta of the Land Title Guarantee Company, aka Our Steamboat Springs, Colorado, Market Trends Guru, sent me a couple of articles last week which seem to have a bit of teeth to them. I thought I would share them with you here.
HUD chief sees early signs of housing turnaround
Wed Apr 29, 2009 11:34pm BST
WASHINGTON (Reuters) — The U.S. housing market is showing some early signs of a turnaround, but it’s too early to say if a full recovery is underway, Housing and Urban Development Secretary Shaun Donovan said on Wednesday.
“We do have some early signs I think that the market is stabilizing. Since January, what we’ve seen is both prices and sales volumes moving up and down around a relatively stable number,” Donovan said at the Reuters Global Financial Regulation Summit in Washington.
U.S. house prices tumbled nearly 19 percent in February. But for the first time in 16 months, the fall did not set a new record, according to data released on Tuesday by S&P Case-Shiller.
“I want to be clear, I think it’s too early to say that is a long term trend until we get a couple more months of data,” Donovan said on Wednesday.
Donovan made his comments as the Federal Reserve said the pace of deterioration in the U.S. economy appeared to be slowing but that it would continue to keep interest rates exceptionally low to ensure recovery.”
And then from: The Week Ahead in the Capital Markets – April 27, 2009
“…the bottom is coming in to view.” The bottom of the housing market, that is. Mark Zandi, Moody’s chief economist, believes home sales hit bottom in the first quarter of this year, and prices will bottom in the fourth quarter. Zandi expects prices to fall sharply through the summer and fall before bottoming out at the end of 2009, down 36% peak to trough.
Following the bottom, the chief economist expects prices to hold steady through 2010 before they resume rising at a modest rate in 2011 and 2012.
“I don’t expect national housing values to get back to their previous peak for more than a decade,” he said. “It’s going to be quite some time before we get back to those previous highs.”
At least mortgage rates are low.”
We would love to hear from you if you’re getting ready to start looking at Steamboat Springs single family homes, condos or land. The snow is gone from town and is melting rapidly in the surrounding countryside.
Posted in Market Trends | No Comments »
Wednesday, April 1st, 2009
By Ulrich,
Happy April Fool’s day! Mother Nature is certainly playing her trick on us as the beautiful spring weather that we experienced throughout most of March has been supplanted by over four feet of snow in the past five days. We awake to another 14 inches this morning bringing our total for the year to 382 inches. With the forecast showing the next week bringing a steady stream of storms our way we are sure to pass the 400 inch mark again for the third time in four years. Of course this “trick” by Mama Nature is actually a treat for those of us who have the opportunity to take advantage on the slopes. Nice, light and fluffy it was on Monday and Tuesday (and no doubt today) as Champagne Powder can still make an appearance in late March and April. It was like skiing on a cloud and not hearing or feeling your skis set an edge. As the airline program comes to an end this Sunday there are lots of discounts and deals to be had for the final 12 days of the season. Hopefully you can take advantage of the perfect conditions.But alas, it’s back to work trying to analyze this interesting economic market that we are all dealing with. Steamboat Real Estate has been no exception although we have been able to weather the storm better than most. I certainly have had my share of showings and clients this winter. I guess the best way to describe the mood is one of positioning. Preparing to act once the market does turn upward and getting all of the financial ducks in a row. I also sense that nobody wants to be the first in case the market in the Yampa Valley continues to drop. My bigger fear is that once the Steamboat Real Estate market does begin to recover it will happen quickly leaving many on the outside of the fence looking in. My belief is that we are near the bottom and the time to take advantage of these conditions is ripe. Sellers do not have much confidence and are anxious to relive themselves of debt. Interest rates are at an all time low and inventory is good. As I counseled a client who believes that the current market will still drop anywhere from 5% to 10%, Why not find the property that you really want and submit an offer 10% below, the probably already reduced, asking price.
Posted in Buying Tips, Market Trends, The Steamboat Lifestyle | No Comments »
Sunday, March 22nd, 2009
By Susana
Yesterday I shared with you, here on our homepage, the Steamboat Springs real estate sales’ numbers from January 1st 2009 to March 21, 2009 (post can be found in our Blog). To compare it to this same period in 2008 and 2007, the Total Sales, Sales Pending and New Listings numbers look like this:
2009 2008 2007
Total Sales: 38 133 207
Sales Pending: 29 6 3
New Listings: 332 51 7
Is there any question that this is a buyer’s market? The numbers are all inverted, meaning there is a lot of available inventory to pick from, and for the most part you can take your time looking, analyzing and selecting the property which best suit your needs. The best terms can also be had now because of the historically, incredibly low mortgage rates, in addition to many sellers being willing to be flexible and creative with terms such as move-in dates, covering repair of inspection items, etc. And now, regarding getting the property at the best price? What if we look at what a home sold for, compared to what the asking, or list, price was?
_________________________________________________________________________________
2009 HIGH LOW AVERAGE MEDIAN TOTAL $ LISTING#
LIST $: $4,200,000, $42,500, $670,390, $399,250, $25,474,820 38
SOLD $: $4,100,000, $40,000, $624,318, $370,000, $23,724,120
DOM: 718 24 240 204
Sold/List $: 98% 94% 93% 93% 93%
________________________________________________________________________________________
2008
LIST $: $5,850,000, $10,000, $646,041, $385,000, $85,923,500 133
SOLD $: $5,400,000, $8,000, $616,983, $374,900, $82,058,833
DOM: 1756 0 265 127
Sold/List $: 92% 80% 96% 97% 96%_________________________________________________________________________________________
2007
LIST $: $5,000,000, $25,500, $579,572, $365,000, $119,971,423 207
SOLD $: $4,375,000, $21,000, $558,575, $357,500, $115,625,142
DOM: 1004 0 179 102
Sold/List $: 88% 82% 96% 98% 96%
____________________________________________________________________
If I ignore the fluctuations of the highest and lowest priced properties, I can see that the average home, which sold for 96% of the asking price in both 2007 and 2008, dropped only 3%, to 93%, this year. The median dropped 4 to 5%, and the total again only 3%. And when you look at the actual average and median prices, you see that they have increased each year! So yes, total transaction numbers have dropped tremendously (207 transactions down to 38), as well as total sales in dollars ($116K down to $24K), but average prices have gone up ($559K to $624K), as well as median price (358K to 370K). Bottom line: Lots of properties to choose from, great mortgage rates if you can qualify, or maybe you have cash, and although prices have been rising it does show that Steamboat real estate prices have been, so far, recession proof. Or, others could argue that the prices are unrealistically high, given the economic pulse, and that is why so few have sold. Will they stay that way, or start dropping? You’ll have to stay tuned! Our take: We’re expecting to see some price drops, at least until the market turns around, at which point prices will be heading back up. P.S. If you noticed and are wondering why the most expensive properties had so many days on the market (DOM), they were all new-construction spec homes, which were listed maybe even before they broke ground, and didn’t go under contract until they were closer to their completion date.
Posted in Market Trends, Real Estate Opportunities, Stagecoach / Oak Creek / Yampa / Phippsburg / South Rou, Steamboat Condominiums, Steamboat Lake / Clark / Columbine / Han's Peak / North, Steamboat Single Family Homes, Steamboat Springs Real Estate - General Information, Steamboat Town Homes, Supply & Demand, Uncategorized | No Comments »
Sunday, March 22nd, 2009
By Susana
It seems like every day a friend is asking me: “Are any homes even selling in Steamboat?”
And what do I tell them? Yes, homes are selling, but not a lot.
We’ve seen a lot of activity as far as showing people properties, and have heard that other agencies are doing the same, so people are looking. And folks are looking for serious deals, of which we don’t have a lot; Steamboat’s home owners, knock on wood, have not been forced into foreclosures, for the most part.
So, what’s selling, exactly? I thought I’d take a close look at all of the “Solds” since January 1st of this year.
On January 1st there were 758 residential properties on the market in Routt County. Since then, 38 have sold. And while those 38 were selling, an additional 332 new listings came on the market! I don’t even think I want to do the math on that one! And 29 homes are currently under contract (pending).
Of the 38 that sold in the past 2.5 months, the breakdown looks like this:
·9 Timeshare/Fractional
(All at the Ski Area base)
·9 Townhomes in Steamboat
(2 in the Fish Creek Area and 7 in the Mountain Area)
·6 Condos in Steamboat
(3 Downtown and 3 in the Mountain Area)
·6 Single Family Homes in Steamboat
(3 Downtown, 2 in the Mountain Area, and 1 in the South Valley)
·4 Single Family Homes in Oak Creek/Stagecoach
·3 Single Family Homes in Hayden
·1 Single Family Home in North Routt
Tomorrow I’ll share with you, here, what the homes sold for and how the final sales prices compared to the asking prices. So stay tuned!
Posted in Market Trends, Real Estate Opportunities, Steamboat Springs Real Estate - General Information, Supply & Demand | No Comments »
Sunday, March 8th, 2009
By Susana Field -
I believe there is a saying: “Desperate times call for desperate measures.” And “Necessity is the mother of invention.”
Two days ago an interesting email notification came across my desk. It was from a local developer/real estate agent, presenting quite the creative sales offer.
To put it in perspective, let’s just take a quick look at last year’s numbers:
· The total amount of Steamboat Springs’ 2008’s real estate transactions was down 52% of the average number of transactions over the previous five years (727 transactions in 2008 vs. an average of 1430).
· Meanwhile, the number of properties for sale at the close of 2008 was up 176% (1,992 vs. an average of 1,132 over the past five years).
So, basically the amount of real estate transactions in 2008 were half of what had occurred for the previous five years average (2007 was an exception). The number of properties for sale at the close of 2008 was on the closer side of having doubled, from the previous five year average. Demand was cut in half, while supply almost doubled.
Following the old supply and demand model, you would think that Steamboat Springs’ property prices would have had to go down. Maybe even way down. But let’s look at the average price of properties for the same time period: Steamboat’s prices increased half again (148%) of the average, from $417,062 to $617,631!
You could argue that people not wanting to pay the increased average property price of Steamboat’s real estate is what’s keeping so many properties still on the market, and likewise, why the number of transactions is so low. In fact, Telluride’s numbers show this; they posted both the least price increase and the most real estate transactions, for the Rocky Mountain Region’s ski resort towns.
It makes sense: We buy properties not only to live in, but with the hope of the property appreciating over time. An automatic piggybank, so to speak, that we can enjoy, and even use the mortgage interest as a tax write off, while the piggybank’s wealth grows. We don’t want to buy something that is possibly going to go down in value when and if the majority of those 1,992 listing’s owners really start to squirm and slash their prices. If prices dropped across the board, there would be less appreciation to be made down the line because you would have to wait for the market to go back up to the price you paid, before appreciation can even begin.
Thus, enters the creative offer that came across my desk two days ago. The developer of some new townhomes near the ski area is offering a 20% price guarantee! The terms, quoted verbatim, are these:
· Developer will escrow 20% of purchase price for 5 years
· Upon five year anniversary, property will be appraised by neutral 3rd party
· If property appraises for less than the original purchase price we will refund the difference up to 20%
· Re-purchase Addendum will be attached to developer contract
The townhomes range in price from $2,250,000 to $2,455,000, and in size from 3465 to 3779 square feet, with 4 BR/ 3 BA and a two-car garage.
So let’s say you purchase one for $2,300,000. 20% is $460,000, so this is the amount held in escrow. If in five years your townhome’s value has dropped by up to $460,000 (to a value of $1,840,000), you’ll get that $460,000 back. If it has dropped less than 20% of your purchase price, you get less back. If it’s dropped more, oh well. And if it hadn’t dropped at all, the developers pocket the escrowed funds.
Rather than offering a 20% price reduction now, which would bring the value of other properties down, the developers are essentially promising you a 20% price reduction in the future, should the value of the property dictate as such. It’s a risk reduction for both sides, and an attempt to increase the number of transactions (at least theirs), and listing numbers down (again, theirs), while keeping Steamboat’s prices high.
Interesting. I’d love to hear what you think.
Tags: CO real estate, Developer sales incentives, Properties for sale near Steamboat ski area, Steamboat Springs
Posted in Market Trends, Real Estate Opportunities, Steamboat Town Homes, Supply & Demand | No Comments »
Friday, March 6th, 2009
Winter is going to return to Steamboat today in a big way, as a Winter Storm Warning has been issued for northwest Colorado. The storm is expected to bring between 8″ to 16″ of snow by tomorrow evening. If you can make it up here this weekend, get packing!
I have just concluded my analysis of how the Steamboat Springs real estate market fared against seven other Rocky Mountain ski resorts for 2008. I was very surprised with the findings. Below please find the complete text, but if you would like to see the charts and graphs, please go to the “Monthly Newsletter” page and the “Market Trends” pages contained herein.
We know how well the 2008 Steamboat Springs real estate market fared compared to past years (a decrease of 52% in Transactions with a 148% increase in the Average Purchase Price), but how did our market compare to other top-tier resorts in these changing times? With the final results of 2008 now in, it’s time to take a peek…
In order to conduct this analysis, data was compiled from the Rocky Mountain Resort Alliance, which is a trade association of ski resort related Multiple Listing Services. Member resort areas in addition to Steamboat Springs include Sun Valley, ID, Park City, UT, Aspen*, Telluride, Vail and Summit County, CO, along with several others. However, these seven were selected due to their similarities with Steamboat in market size, quality of resort services and facilities, age and historic data availability. Data used to compare the resort markets included Transactions, Average Price, Listings and Dollar Volume. An Absorption Rate (annual Transactions divided by year-end Listings) was derived from this data to provide a fifth category of study.
To begin the analysis, a base number on past performance has to be established to then compare against 2008 results. 2007 was a record year for many markets, so in order to create a more realistic baseline, a five year average (2003 through 2007) was established. Measured against their own five year average, the 2008 increase or decrease in market activity will produce a percentage to determine how the resort fared.
For instance, Steamboat posted 737 Transactions in 2008, but averaged 1,430 in the prior five years. Consequently, 2008 Transactions were 52% of average. Telluride experienced the lowest deviation from their average Transactions. Their five year average was 329, but in 2008 they posted 177 sales, performing 54% of average for 2008. This type of calculation shall be used for each of the five categories. Based upon this percentage of change from their average, a first place, second place, etc. will be awarded. First place finishers will receive 8 points; second place receives 7 points, and so on down the line. By placing first, Telluride receives 8 points in Transactions while Steamboat placed third and earns 6.
In my opinion, some categories are more meaningful than others when determining market health. Deviation comparisons in the Transaction category are more revealing than Dollar Volume, which could be skewed with a couple of high-end (or low-end) sales. Average Price deviations indicate if property values have held their own during challenging economic times, while a higher-than-normal increase in Listings would show the financial where-with-all of the market and how many owners (speculators) may be wanting out. Absorption Rate represents how quickly the market will absorb (purchase) any given property over a year’s time.
Consequently, depending upon the category’s importance, a multiplier will be used to give the resort a score for their performance. Of the five categories, Transaction activity is most important and will be awarded a multiplier of ‘5’. Average Price is second and each resort placement will be multiplied by ‘4’, followed by Absorption Rate ‘3’, Listings ‘2’ and the least important Dollar Volume with a multiplier of ‘1’.
As an example, the resort taking first place (8 pts) for Transactions (5 multiplier) will receive a total of 40 points (8 times 5). The last place resort (1 pt) for Dollar Volume (1 multiplier) will receive 1 point (1 times 1). The resort with the highest total score shall be deemed to have performed the best in the 2008 Rocky Mountain ski resort real estate market.
Based off of this format, Jackson Hole, WY outscored the competition with a total point value of 96 (out of a potential 120), followed by a close grouping of Summit County, CO (89), Vail (86)and Telluride (78). Steamboat and Aspen were clustered together with 57 and 53 points, respectively, while Park City (38 points) and Sun Valley (35 points) had the worst performance.
What impaired Steamboat Springs most was the high increase in Listings. With 1,992 properties for sale at year-end 2008, and with a five year average of only 1,132, it realized a 176% increase in inventory; the greatest increase of any of the eight resorts surveyed and a last place finish. This compounded the Absorption Rate calculation to only 29% of average performance, also earning a last place finish. Steamboat’s 2008 Absorption Rate was 37% but enjoyed a five year average of 126%.
One very interesting find in this study is that property values have either held their own in 2008, or may have lagged behind resulting in lower Absorption Rates, depending on your position. Average Prices in all markets in 2008 increased from their five year average. However, Telluride had the lowest increase at 108% of their $1,176,360 average price to $1,269,808 (but also scored first place in Transactions), while Vail experienced the largest gain at 177% of average, from $847,261 to an amazing Average Price in 2008 of $1,495,788. Steamboat saw prices increase 148% of average from $417,062 to $617,631.
What Telluride experienced is a question the rest of the markets will have to ask: Will property values be sacrificed to increase transaction activity? It is an important question to ponder, but a difficult one to forecast. Absorption Rates of 50% equate to a property being on the market for two years. An Absorption Rate of 100% yields a one year marketing period. 2008 Absorption Rates ranged from 66% in Vail to 24% in Sun Valley and Telluride. If sellers have the patience to wait for the economic recovery, then prices will most likely maintain course. But should they desire to sell prior to that time, reductions will most likely occur.
Tags: aspen real estate, jackson hole real estate, park city real estate, real estate analysis, ski country real estate, steamboat real estate, summit county real estate, sun valley real estate, vail real estate
Posted in Market Trends | No Comments »
Monday, March 2nd, 2009
Boy, am I jealous. Atlanta, GA has received more snow over the past four days than Steamboat Springs! I’m sure our friends in the Peach State are happy to see any precipitation, but if you could send some of that white stuff back our way, it would be appreciated!
This past weekend we have had family from the Chicago and Pittsburgh areas visit, and we’re sending them home today and tomorrow with suntanned faces. The temperatures for the past several days have been between 40 and 50 degrees with sun filled skies. However, we’re expected to return to more normal weather later in the week with temps between 30 and 40 degrees and the possibility of snow.
Have you ever wondered how Steamboat Springs real estate values compare to other resorts? The Rocky Mountain Resort Alliance has just published their end-of-year report and we’re happy to see that Steamboat real estate remains one of the most affordable top-tier resort markets in the Rocky Mountains.
The average sales price in 2008 for Steamboat real estate was $617,631. In Aspen it was $2,722,375; Park City $799,627; Telluride $1,269,808; Vail $1,495,788 and Jackson Hole $1,792,866. The only top-tier resort area where the 2008 average purchase price of real estate was lower than Steamboat was Summit County, Colorado, home to Keystone, Copper Mountain, Arapahoe Basin and Breckenridge, which was $583,228.
If you are interested in knowing more detail how the 2008 Steamboat Springs real estate market fared when compared to these resorts, this month’s newsletter, which will be dedicated to this topic, will be coming out by the end of this week and posted on this web site. If you would like the newsletter emailed to you immediately when it is done, please email us and we’d be glad to set you up.
Tags: market comparison, ski resort real estate, steamboat real estate
Posted in Market Trends, Real Estate Opportunities | No Comments »
Wednesday, February 25th, 2009
By Doug
Today the National Association of REALTORS released their January report. Below please find some of the interesting highlights of their findings:
Existing-home sales declined in January with some buyers waiting to see how details of the economic stimulus package would affect them, according to the National Association of Realtors®. At the same time, inventories fell to a two-year low.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – fell 5.3 percent to a seasonally adjusted annual rate1 of 4.49 million units in January from a level of 4.74 million units in December, and are 8.6 percent lower the 4.91 million-unit pace in January 2008.
Lawrence Yun, NAR chief economist, said there was understandable hesitation by some home buyers. “Given so much stimulus package discussion in January, some would-be buyers simply sat out for clarity and certainty on the nature of housing stimulus,” he said. “The housing market will soon get a lift from very favorable buying conditions – not only from improved affordability, but also from the stimulus of an $8,000 first-time home buyer tax credit, and higher conforming loan limits that will allow more people to tap into 50-year low mortgage rates.”
NAR estimates the impact of the stimulus package and lower interest rates on the housing market to be about 900,000 additional home sales in 2009 compared to conditions before the stimulus package. Inventory is expected to fall below an 8-month supply by the year end, which would be consistent with home price stabilization.
Total housing inventory at the end of January fell 2.7 percent to 3.60 million existing homes available for sale, which represents a 9.6-month supply2 at the current sales pace. Because sales were down, the January supply is up from a 9.4-month supply in December.
“The drop in total inventory is an encouraging sign because the number of homes on the market has declined steadily since peaking in July 2008, and inventory is at the lowest level in two years,” Yun said. In January 2007 there were 3.54 million homes for sale.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low at 5.05 percent in January from 5.29 percent in December; the rate was 5.76 percent in January 2008.
A high prevalence of distressed home sales, and of those in lower price ranges, has skewed the median price to be markedly lower than under normal market conditions. The national median existing-home price3 for all housing types was $170,300 in January, down 14.8 percent from a year earlier when the median was $199,800; the median is where half of the homes sold for more and half sold for less.
McMillan said we are living in a bifurcated market divided between distressed sales and traditional homes. “It appears that in many instances a buyer can get a really good deal on a distressed sale, although that home may require some significant effort to bring it up to standard.” A preliminary analysis by NAR suggests that non-distressed properties are holding their value much better.
“Distressed sales activity appears to be leveling off, although there are wide differences locally. For example, close to 80 percent of all sales are either foreclosed properties or short sales in Santa Ana, Calif., but less than 20 percent in the Chicago region,” Yun said. About a quarter of all inventory is listed as being distressed, but NAR estimates that distressed sales – foreclosed or those requiring a lender-mediated short sale – comprised about 45 percent of all sales in January. “Home buyers are evidently competing for homes with deep discounts,” he said.
Yun said it will take a while for the stimulus to show in housing data. From the time a buyer starts looking for a home until it is reported as a closed sale can take as long as five months: a median of 10 weeks to search and make an offer, about 6 weeks to close the transaction and up to 4 weeks to collect and report the data. “This means improvement from the economic stimulus isn’t likely to show as closed home sales before summer, although we may see an earlier lift from lower mortgage interest rates,” he said.
Significant local market variations continue. “A majority of markets experienced sales declines of more than 20 percent from a year ago, but some markets appeared to have reached the tipping point of accelerating home buying,” Yun said. “For example, home sales in Las Vegas have more than doubled with some reports of multiple bids.”
Regionally, existing-home sales in the West were unchanged at an annual rate of 1.20 million in January and are 29.0 percent stronger than a year ago. The median price in the West was $220,000, which is 25.5 percent below January 2008.
If you would like to see the entire article, visit:
http://www.realtor.org/press_room/news_releases/2009/02/january_ehs_inventory?LID=RONav0021
No doubt there is no market in the country that has escaped the downturn, which means there are wonderful buying opportunities. I can’t count how many times clients have told me “I should have bought “X” number of years ago when the prices were lower.” Well, now is your time!
If you are looking for a nice single family home within the Steamboat Springs town limits, I previewed one yesterday on Uncochief Circle that is very well priced. Originally listed at $1,095,000, this four bedroom, three bath home was built in 1982 but its 2,549 square feet has been very well maintained. The property borders open space and is at the edge of the city limits. It has a beautiful kitchen with hand crafted walnut cabinets, maple hardwood floors, new appliances and an open floorplan. Living area views look past the large deck to unobstructed views of the Steamboat Ski Area, Buffalo Pass and beyond. A new roof, newly paved driveway and newly stained exterior show the pride these owners have had in maintaining the property. The list price on this Steamboat home has just been reduced to $795,000.
Give us a call today and we would be happy to provide you with additional information.
Tags: real estate news, Steamboat Single Family Homes, steamboat springs real estate
Posted in Best Buys, Market Trends, Quarterly & Annual Reports | No Comments »
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