The way the market is right now, there are three types of buyers that really have it the best if they want to buy a home, townhome, condo, whatever, in Steamboat Springs, Colorado.
In fact, if you are one of these types of buyers (you lucky devil) and you haven’t made an offer on a property yet, the question is: What are you waiting for? Certainly not for more money to fall on your head, I hope! (Especially if you are a first-time home buyer, but also if you’re an interested buyer that can get one of these “at crazily-low interest rates right now” mortgages!
So, the three types of buyers who really have it made in this market are:
1. A cash buyer, of course, always has it good because: A. They don’t have to sell a home before they can buy a home. B. They don’t have to worry about getting a loan, (which especially is problematic if you are a business owner used to relying on stated income loans – these are just not happening; at least not at any great rate - or just about anyone that had credit or income glitches in the past two years). C. Sellers love cash; they don’t have to worry about you not qualifying for a loan, and typically you can close on the property faster than when a loan has to be gotten (up to 3 months these days). Because sellers like cash so much (don’t we all?), the home buyer in Steamboat Springs who has cash is in an especially strong place to negotiate!
2. The 2nd home buyer is the next home buyer that has it good right now, and typically for reasons A.(above): Not having to sell a home before they can buy, and B. Although this buyer needs to get a loan, the mortgage rates are so ridiculously low right now that even a possible cash buyer would be smart to save their cash and take out a loan! Savvy home buyers know that there is nothing like using cheap money to help a homeowner grow an incredible amount of wealth!
3. But it’s the first-time homebuyers that really, really, really have it the best right now. Why? Again, for reason A. They don’t have to sell a home; along with the 2nd home buyer’s reason B. Mortgage rates are so low that it is ridiculous to not borrow money to buy a home! But what the first-time homebuyers have over all the cash buyers and the 2nd home buyers is C….(drum roll please)…If they close on their new home by December 1st, 2009 they will essentially get a free check from the government for $8000… as long as they don’t sell that home for three years.
First-time home buyers are considered to be anyone that hasn’t been a homeowner for the previous three years. That flabbergasted me at first – I thought for sure a first-time home buyer would mean someone who truely was a first-time home buyer, meaning: ever! But alas, what did I know!
And I say $8000, because the law says 10% of the sales price, up to $8000. We all know that you cannot buy a home, townhome or condo in Steamboat Springs for less than $80,000, so it is all a mute point since $80,000 x 10% = $8,000 = any home you can buy in Steamboat!
Yes, they get this as a tax rebate, which means they have to wait until they file their 2009 tax return before they see any money. (So, unfortunately no, they cannot use it towards their downpayment, which is a real shame.) But, let’s say they don’t even owe $8000 in taxes. Let’s say they owe $3000. Well, that $3000 will no longer be owed, PLUS the IRS sends them a check for the balance; in this case a check for $5000!
I repeat: The government is paying them $8000 to buy a house! And the mortgage lenders are practically giving money away at such dirt-cheap rates! Can you just imagine how nice that 5% (or less) loan will look in 10, 20, 30 years when the rates could be back up to 18%! Not to mention the appreciated value of your Steamboat Springs home, and all of the enjoyment you’ve had living there!
Yes the first-time homebuyer needs to have had a steady income which looks nice on the past two tax returns, and yes they should have very little debt (ideally not even a car loan) and also great credit. But they don’t even need downpayment money if they qualify for a 100% USDA loan!
As a friend put it: “Oh, I wish I didn’t already own my first home!” But I reminded her: “Yeah, but just think of all the years you have had to enjoy it, and all of the money you have made by not paying rent! Quit complaining!”
If you are a first time homebuyer, give us a call! If you are a second home buyer, give us a call. And if you are a cash buyer, with all of the great inventory available your options are practically unlimited. Everybody else, especially those of us who would A. Need to sell before we could buy something else and B. Wouldn’t qualify for a loan anyway…Well I guess it is just not our time, but remember: Patience is a Virtue! And for those of you that can, it is a great time to refinance!
The old saying is that you can’t teach an old dog a new trick. Well when it comes to the new wave of social networking this is only half true. It seems like if you aren’t texting and signed up with Linkdin, Twitter and Facebook than you are considered a dinosaur.So I have decided to join these communities and venture into the water. However, just like a native Coloradoan would do when he first sees the ocean, I wade out very slowly. My first reaction is WOW! How many people that I know are already using this medium, I make contacts very quickly and it is fun to find people that you have forgotten or not seen in decades. As time marches on I believe you either fall into one of two camps. Either you are so engrossed that you find yourself spending more and more time on these sites or you realize that keeping up with everyone becomes more and more time consuming. I fall into the latter category. I guess this is what distinguishes me as an old dog. My social networking consists more of kibitzing with my friends and being recognized by most of the bartenders in town.As another ski season sunsets on Steamboat we should witness another annual event much like the swallows returning to Capistrano. This event is the emergence of new properties onto the Steamboat Springs Real Estate market. Land in particular is difficult to sell in the winter and we see a lot of opportunities rise as the snow melts. Condos should also be in the mix as owners have maximized their rental earning potential for the winter. What does this mean to the consumer? In this market it means opportunity.More inventories translate to more competition. The key is how to flesh out who is more motivated to deal. At Buyer’s Resource we have several proven strategies to do just that.Spring is also a great time to see what is available in the Condominium & Townhome market. Winter can at times pose a problem as the units are booked and vacationers would rather not have anyone interrupting their privacy. There are some Home owners associations that simply do not allow a property to be shown while it is being occupied. Of course spring also means that the golf courses will be working hard to open up and invite all of us hackers to once again vent our frustrations.
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:
20092008 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? _________________________________________________________________________________
2009HIGHLOWAVERAGEMEDIANTOTAL $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.
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 atall 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!
Two nights ago we experienced a weather phenomenon that is pretty uncommon in the Rocky Mountains…a snowstorm accompanied by thunder and lightening. It was a fast moving storm with good winds, but while it was here it left the Steamboat ski resort with 11 inches of snow on top and nine at mid-mountain.
If you are looking for a beautiful lot next to the golf course with ski area views, this one may be for you…
Beautifully set amidst aspens and cottonwoods, this building site is one of the rare, affordable sites left in Mountain Vista Estates. It is not only close to the ski area but also only 5 minutes to downtown. It has an exceptionally sunny southwest exposure, and the surrounding homes and natural landscaping make this lot a prime location to build a quality home. The lot size is .35 acres and it is listed at only $575,000, I personally live in this neighborhood and know the area has many special features and benefits.
If you would like to know more about this property, please let me know.
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.
This morning, as I was hurrying to get ready to come into the office, I glanced out my bathroom window, and for a moment, time stopped.There, lying in the snow in front of a clump of trees, was a gorgeous, majestic bull elk, seemingly oblivious to a couple of magpies that were pestering him.As one assertively settled on his head, directly behind his enormous antlers, I had only one thought – this would be such a great shot, I wish I had a zoom lens!But I had to settle for looking at him through my binoculars, which was still quite spectacular.
If you would like the opportunity to live in this beautiful place we call Steamboat Springs, and you are a first-time home buyer, the new economic stimulus bill makes 2009 a great time to buy real estate.Are you considering buying a new condo, townhome or single family home?Please see below for a list of important provisions from this package, as stated on the Colorado Association of Realtors website – www.coloradorealtors.com :
Time frame to buy? – By December 1, 2009 First-time home buyer? – A buyer who has not owned a home for three years. Married first-time buyer? – Both buyers have not owned a home for three years. Claim tax credit? – Claim the tax credit on your federal income tax return. Other form or forms? – No other form except your federal income tax return. Credit limits? – Single $75,000, Married $150,000. Building a custom home? – You qualify, but you have to occupy the home by Dec. 1, 2009. Buying a new home? – You qualify, but the settlement day has to be by Dec. 1, 2009. Tax credit pay back? – You are not required to repay except for certain conditions. Access the tax credit now? – Change your withholding numbers. Mortgage Revenue Bonds? – Allow tax credit home buyers to participate. Loan credit? - State housing finance agencies to help buyers at closing by advancing the credit amount as a loan.
Please call or e-mail any of us here at Buyer’s Resource for a free buyer’s guide to help you with your very important purchase!
And don’t forget to set your clock forward an hour tonight- it’s hard to believe, but it’s that time again!
P.S. – If you know of a good deal on a Canon EOS Zoom lens, please contact Kristin!
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.
For those of you who regret not buying into one of the new Steamboat Springs developments near the base of the ski mountain at pre-construction pricing, you’re in luck.Wildhorse Meadows, which sold 70% of the units at Trailhead Lodge at its selection event in the summer of 2007, has temporarily reduced several of its units back to those original prices.Trailhead Lodge, an integral part of the residential resort community developed by Resort Ventures West, and scheduled for completion this summer, will have 86 fully-furnished suites and will be just steps away from the future gondola, which will transport residents to the base of the ski area.
The lodge itself will have many amenities -several pools, (including the Grotto Spa, a lap pool, adult and kids pools), many outdoor socializing areas with gas firepits, as well as an outdoor barbecue.In addition to the Wildhorse Gondola, the master planned community will have other distinctive amenities such as a country store, post office,the Ranch House and Wildhorse Athletic Club.Owners will also be able to take advantage of the numerous walking and biking trails throughout the 47- acre community.
Current prices range from $940,000 to $2,325,000 for 1 bed +den, 2bed, 2bed+den, 3bed and 3bed+den units.
Please call us today to set up a showing to see the model and to get additional information about Trailhead Lodge.
Those of you following our blog (all of the previous entries posted here on our homepage can be found in our blog by clicking the “Blog” tab in the upper right of our home page), have been hearing the news about Steamboat’s hometown ski heroes at the World Ski Championships in Liberac, Czech Republic, this past week. We’ve specifically been following the men’s Nordic Combined team (ski jumping results combined with a cross-country skate ski race, which I describe in an earlier blog post). At our last writing, the Steamboat local, Todd Lodwick, had won two Gold Medals, and Billy Demong, originally from New York but trains a lot in Steamboat, had won a bronze medal, bringing the total number of medals EVER won by the USA in this event to five.
Then just this morning, before coming into the office, I watched the live feed over the computer, of the final 2009 event. Billy Demong took the Gold!! I cheered in the final leg of the 10K race as Billy regained his lead after a challenge, pumping my arms up into the air. And then broke down crying as I watched him cross the finish line to claim the Gold.
To understand the significance of Billy’s win, I need to tell you what happened two days ago in Liberac. It was the team event, and the USA had a great chance of medaling, if not of even taking the Gold. It started with the jumping event and Billy Demong was the first of the four Americans on the team to jump. But he didn’t, because he couldn’t, because he couldn’t find his jump bib. And the regulations say you have to be wearing your jump bib – it has the number which identifies you – to compete. So, he was disqualified, and as a result the USA came in last.
Can you imagine the disappointment? The cameras caught the look of confusion on his coach’s face. And caught Billy’s words to Todd, “It’s all my fault.” (The missing bib was later found inside Billy’s jump suit, down by his ankles, where it had fallen after Billy had tucked it, at one point, into the collar of his suit.) And I know it must’ve hit the other two team members – Johnny Spillane and Eric Camorata – especially hard, since it would’ve been there one chance at medaling.
From the great highs of the first two events, emotions plummeted to the great low of Billy’s disqualification.
But what does Billy do with that loss, that failure, that great turning of the tides? He fully accepts responsibility, and uses the energy from that crisis to earn his personal, first-ever Gold today. And so I cried. At his fortitude. At his redemption. At this phoenix rising so quickly from the ashes.
Is what happened with Billy and the USA team that unlike the wave of great exuberance and then great loss we’ve all felt this year with the economy and our housing investments? Do we stay wallowing in the pain and shock of our loss, after such great earlier success, as Billy and the US team could have done?
Or do we, like Billy, pull ourselves together and take stock of the still existing opportunity: Mortgage rates are at an all-time low, housing inventory in this world-class resort of Steamboat Springs, Colorado, is at an all-time high, and buyers are in the position of power. Do we, as potential buyers and livers of the dream, stay self-absorbed in our pain only to, years from now, ask What If? Or do we rouse ourselves in time to see we still have a chance, and win? I’ll see you at the finish line, and I’ll be crying.
