With the recent conclusion of the second quarter of 2010 (April, May & June), I thought I would take a look at how this quarter and first half of the year compared to 2009. I’m pleased to report that the market has substantially picked up compared to last year, and it most likely has occurred because sellers have been willing to come down in their asking price.

The number of Q2 transactions posted this year was 143 – a 30% increase over the 110 purchases in Q2 2009! The average price for a Steamboat Springs-area property dropped in the same quarter from $681,333 to $609,656. However, not too good news for buyers is that that $609,656 average inched slightly up from Q1 of 2010, which was $588,759. Q4 of 2009 was 550,497 and Q3 was at a 14 quarter low at $523,271.

Does this mean the Steamboat Springs real estate market hit bottom last fall? Well, there are still plenty of listings on the market. The conclusion of Q2 showed we’re at an all-time high for MLS listings at 2,385, but only slightly higher than where we were going into Q3 last year at 2,310. Sellers still want to sell, and the competition to attract buyers is high, but we are now seeing competitive bids happening on well priced and foreclosed properties, where last year it was an abnormality for that to occur. Pending any substantive change in the economic climate, I’m thinking of a slow and steady increase in activity and price appreciation over the immediate future.

What does this mean for our buying clients? If you find a property that is attractively priced, we suggest you act on it. There may be another buyer on the sidelines just waiting for the same property, and even if the market slips a little more, the market has also proven once that it can command 2006 and 2007 prices, and it will again. We’re currently at 70% to 80% of those values, and it’s going to be more important to you that you get the right property now than hoping for another percent or two correction, if it will ever occur.