July 2nd, 2010
What could be better than the celebration of the signing of the Declaration of Independence on July 4th 1776? Is there anything that would be more appropriate than to celebrate our founding fathers incredible foresight and the dedication and courage it must have taken to stand up to the super power of England.
As we enjoy the parades and various festivities, parties with hot dogs and ice cream, practicing our vowels, Ohhhh, Ahhhh, while watching the evening’s fireworks, let’s not forget to reflect what it took to build this Country into what it is today. America has always been a land of pioneers and entrepreneurs. We have never been afraid to try or to fail. We continuously push the envelope and, to paraphrase John F. Kennedy, ask what we can do for our Country.
This Pioneer spirit is no more evident than here in Steamboat Springs. Imagine transplanting your family to an unknown location somewhere high in the Rocky Mountains. What must it have been like in 1875 for the Crawford family when they first decided to homestead in the Yampa Valley? Would the Indians be friendly? What dangers would the Bears, Mountain Lions, wolves pose? What happens if disease or injury sets in? What it must have felt like to know that the nearest outpost with provisions was a week away and totally inaccessible for the better part of the year. Could the Crawford’s ever had imagined that their single room cabin would have morphed into the beautiful resort community that we all enjoy today?
This is just one small example of the fortitude it took to grow the United States into the world leader it is today. During our 234 years of Independence we have faced a multitude of challenges and tragedies, economic downturns, wars, famines, whatever Mothers Nature and Earth can throw at us and, yes, even oil spills. Yet we show a remarkable resiliency and the ability to rebound from these challenges. As a Country and a people we are truly the best when the times are the worst.
So on with the celebration! Happy 4th of July everyone!
Posted in The Steamboat Lifestyle | No Comments »
June 28th, 2010
Last week one of Steamboat’s largest and most exclusive slopeside condominium projects, Edgemont, announced a whopping 30% price reduction for their next three sales. Although they have not had a sale since April, it only took five days for three buyers to seize the opportunity. Edgemont is now offering a 25% discount for the next three buyers.
First of all, this recent activity shows me there are sellers willing to discount their price to lighten their financial obligations, as well as buyers in the marketplace who are willing to take advantage of a good opportunity when it presents itself. And it appears there are going to be three more buyers who are also going to get a great deal on a luxury condominium at the base of the Steamboat Ski Area, as well! But the one thing that I can’t seem to understand is why it had to take the seller to discount the prices and advertise them to the public to make these buyers act?
As a real estate brokerage dedicated to seeking the best deal for our clients, it does not take an advertised offering to the masses for us to find a great deal for our clients. We typically suggest making an offer below list price anyway. In today’s market, if you are considering a property to purchase, if we aren’t competing with other offers, what’s to say that we create our own “special discount” and make an offer well below list price and see just how motivated a seller is. Furthermore, if a client of mine were interested in one of the Edgemont condos, I would have recommended making an offer less than the 30% advertised discount to make sure nothing was left on the table.
If you have been thinking about a Steamboat property, rather than waiting until the seller announces a discount to the general public, wouldn’t it make more sense to offer 30% below list now on a property you know is the one you want and not have to worry about competing with other buyers for the same property?
Give us a call to start your Steamboat Springs real estate search today!
Tags: consumer protection, exclusive buyer agency, steamboat real estate
Posted in Uncategorized | 1 Comment »
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 »
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 »
June 21st, 2010
If you have been looking for a great buy on a brand new, slopeside residence, this may be your time! I just received an email from the sales team at the luxury Edgemont condominium complex overlooking the Steamboat ski area, and for the next three sales they are discounting their prices a whopping 30%! Edgemont is located next to Bear Claw Condominiums with commanding views of the Yampa Valley, Ski Slopes and Base Village. This promotion is good for any three of their one to five bedroom residences. If you would like more information about this extraordinary offer before they are gone, please call us today, at 877.970.8885.
Tags: steamboat real estate, Steamboat Springs Condominiums, steamboat springs real estate
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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 »
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 »
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 »
March 26th, 2010
The following article was supplied by Joe Birkinbine of ATP Financial Services in Steamboat Springs: We’ve become accustomed to low consumer interest rates, and many people may be conditioned to see higher rates as something to fear. But it’s difficult to see much of a downside to the Fed’s move. The interest rate in question, the discount rate, is what the Fed charges banks for emergency loans. It’s not directly related to the interest charged on consumer loans, so the rates you pay for credit cards, auto loans, and adjustable mortgages aren’t likely to be affected. In announcing in February 2010 that it would raise the discount rate 25 basis points to 0.75%, the Fed also made it clear that it would not soon raise the federal funds rate, which has a tremendous influence over interest rates paid by consumers. When the Fed adjusts interest rates, the earliest and most visible effects tend to be psychological. By raising the discount rate, largely a symbolic gesture, the Fed managed to send a message without potentially dampening the prospects of economic recovery, some analysts say. Higher interest rates are indeed a concern for consumers, but they are also a good sign for the economy Signs of RecoveryIn 2007, the Fed began lowering the discount rate from a high of 6% to address problems in the credit markets that began to surface that year. Fear had gripped the credit markets, and lenders were reluctant to make loans. The Federal Reserve, working with other central banks, undertook several extraordinary measures designed to restore confidence. One of the measures was to lower the discount rate to assure lenders that they would continue to have access to marketable funds if other sources dried up. Raising the discount rate is the Fed’s first step toward removing some of the nearly $1 trillion in emergency stimulus that it pumped into the financial system. It is an indication that the Fed is confident lending conditions are stable enough that extraordinary measures are no longer necessary. Heading Off InflationOne of the common criticisms of the Fed’s trillion-dollar emergency intervention was that flooding the financial system with so much money was eventually going to spark inflation. Although this is a valid criticism, inflation is likely to remain low until the nation’s employment situation begins to improve. Indeed, weak employment, tepid consumer spending, and other challenges facing the economy are among the reasons why the Fed hasn’t yet moved to raise the federal funds rate. Nevertheless, the Fed faces a tricky task in removing its emergency stimulus from the system soon enough to avoid inflation but not so quickly as to stifle the recovery or frighten the financial markets, which closely watch the Fed for signs of confidence or fear. By raising the discount rate now, the Fed is helping to reduce the risk of future high inflation, which is good news for investors and consumers. Rates Will Eventually RiseThe Fed has signaled that it is likely to increase the federal funds rate as soon as economic conditions allow, which will likely cause consumer interest rates to increase. Most analysts don’t expect this to happen until late 2010 or sometime in 2011. What will that mean for your finances? Higher interest rates are generally a sign that economic activity is picking up, so although you may no longer be able to buy a car with zero interest, there are other benefits to living in a growing economy. Please call if you have questions about how to prepare for higher interest rates.
Posted in Financing | No Comments »
March 25th, 2010
Calling all first-time homebuyers – deadlines are approaching, and there has been no talk of extending them.
Deadline # 1: April 30th
This is the deadline by which you will need to have a property Under Contract. “Under Contract” means that all negotiations will have been ironed out and the final sales price and terms of the contract will have been agreed to, and there will be a signed contract by both parties in hand. Typically negotiations will take a couple of days, and maybe even up to four days if buyers and sellers are going back and forth with the price or the dates, etc. If we allow four days of negotiations that means you’d have to make an offer on a property by Monday April 26th.
You should allow several hours to review the contract with your real estate agent. And it’s best to have a pre-approval letter from your lender to submit with the offer. To create that letter your lender will need to have met with you and had time to review your tax returns and run a credit check, so you’ll need to have had an appointment and gotten your initial paperwork together.
If not with the offer, at least within a couple of days of submitting the offer you will need to have an Earnest Money check ready to be handed over to the listing agent’s office or the title company. The check will almost immediately get deposited into a trust account, so you will need time to get the cash together for the Earnest Money deposit.
And of course before that you will have had to find the property you would like to buy. This can take awhile. You will also need time to decide on the price you want to offer. Your real estate agent can help you by running comparative market analysis of similar properties which have sold recently, but this too will take a little while.
The good news is that after you get Under Contract you will have time for due diligence, which means you’ll have time to have the home inspected, to review the HOA minutes and bylaws, to get a survey done, etc., so you don’t need to have that done beforehand.
Deadline #2: June 30th
This is the deadline by which you will need to have Closed on the property. “Closing” is the term used for when the title of the property actually changes hands from the previous owner to you. In Colorado Closings take place at Title companies, and that is when and where monies are also distributed. You’ll need to have your down payment money in the form of a Cashier’s check, and your lender will need to have their money to the Title Company by then too.
Since it typically takes two months for a loan to go through, and since you won’t be the only one trying to get a loan during that period (read: lenders will be swamped), I think April 30th may even be too late to get Under Contract if you need to close by June 30th.
Bottom line: Procrastinators the time has come! We need to look at properties this weekend.
Tags: , buying steamboat springs real estate, first-time homebuyer credit, tax credit deadlines
Posted in Buying Tips, Financing, Real Estate Opportunities, Taxes | No Comments »
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