We can definitely feel Summer in Steamboat! Blue skies and warm temps have made us all a bit giddy. The river has peaked and folks are enjoying kayaking and paddle boarding. Bike trails have opened up. The only thing that slows us down is occasional …
Steamboat Springs in Spring is an excellent season! Flowers are up and things are getting green. We have just had several fronts move through that made sure that we remembered that this is still ‘Mud Season’. Today, the skies are blue and it’s 68 degrees. …
Steamboat has been having great weather! After two weeks of warm and sunny, we got a handful of days with a snow and rain mix. These Spring snow days are fun because I can drive my truck through deep slush, making squishy sounds as I go by and the landscape is green and white. Very cool.
For the past two months, my time has been split between helping several folks find somewhere to live outside of the city limits and helping folks with land or commercial purchases inside the city limits.
In all cases, the real estate market drama continues. I’ve seen new homes in Hayden go from $430,000 to $470,000 in the past three months. To me, it was a matter of time for Hayden and Oak Creek to become more popular, especially with young families, as Steamboat Springs continues to see strong appreciation.
Before the recession, I took a Summer trip to Jackson Hole to see a friend of mine auction time shares at a complex at the resort. I befriended a security officer while waiting for the auction to start and asked questions about the area and living there. He spoke at length, and what I remember most is him saying the most of the workforce in the Jackson Hole area drive 30 miles or more to work in Jackson.
Watching the growth of Oak Creek and Hayden, I think the same scenario is developing in Steamboat.
For small investors of rental homes, this time has brought opportunity. A three-bedroom home in Hayden, brand new, will rent for $2500 a month. With a purchase price near $400,000, there is cash flow after expenses. And if appreciation continues, there will be added value through the life of the investment.
Who do I see selling the most in Steamboat? Landlords and short-term owners. Landlords who have had their rentals for several years see this as a time to cash out and move money to other investments they prefer. Short-term owners, meaning those who purchased a residential property in the last 3 to 5 years, are also selling. They do not have a strong community connection with Steamboat that outweighs the gains in value they have seen in the past few years. In both cases, they are taking money off the table.
A close friend of mine is turning 50 years old in the near future. We have spent many days together and are over 400 days snowboarding together. We also have done other things frequently, like rafting and camping. When I asked him what he …
The past month has been epic skiing. Though the snow was slow in the earlier season, February was true to us and brought a great storm cycle! It was good to get into steep terrain and float on some deep powder.
Here is a link to the Colorado Group Realty February newsletter. It has good insight into the market from our CEO, Steve Goldman.
The news and opinions I have been studying over the past month is pretty far ranging. From what I can tell, there are a few camps of thought.
One is the Inflation Camp. These people think that home prices are going to come down, or stagnate, due to prices of goods going up. When the price of our energy, food, and clothes goes up, we have less money to spend on housing.
The second is the Moratorium Camp. These persons think that the market is going to be like the 2008 crash. Where those persons who have a rent or mortgage moratorium lifted and they have to pay their owed monies, thus putting them in foreclosure. From what I can tell, this will happen but should not be a ‘sky is falling’ moment. There are not nearly as many homes under water as 2008.
And the third camp is the ‘sky is the limit’ camp, where home buying momentum will continue for awhile to come.
My perception of Steamboat is the third camp for 2021. Having ales with brokers and talking about the market, we are seeing a slow down in momentum. This really doesn’t mean much until we see what Summer brings. The slow down could just be there is no inventory to buy so buyers are waiting on their property or waiting for Summer inventory, which is typically larger than Winter.
If interest rates are still low, it will remain easy to buy real estate.
As well, home building has lagged for since the Recession. Millennials have not wanted to buy until now, which makes sense. They are late to start families and that is happening now. The move from the city to the burbs is a lot about making babies over COVID.
Between Gen X going into retirement and looking for another home or two, big corporations like Zillow buying homes, and demographic trends of Millennials, Housing will be a crunch until inventory picks up and interest rates go up.
Things have changed in Steamboat for occupancy. This past weekend is a prime example. Tourists were everywhere enjoying Steamboat as best they can. Though lift lines were beyond record length, folks were enjoying the first real storm of the season. The chart above is …
COVID has kept most of us home more than we like, except for the best introverts. Recently, Kristen and I got serious cabin fever and had to escape our condo.
Steamboat Springs, realistically, is in the middle of nowhere. Located in the northwest corner of the state, it is the main economic hub. Craig, Colorado has a better-than-expected economy, but is very different from Steamboat Springs’ amenities and volume of traffic. To get anywhere, a drive of more than an hour is common.
Cities within about two hours of Steamboat include Silverthorne-Dillon, Eagle-Vail, Leadville-Buena Vista, and Glenwood Springs. Even more is available at three hours of driving.
We chose to get in the car and drive south to Eagle.
We had been to Eagle for Costco runs and stopping in for something to eat on the way to other cities, like Montrose or Durango. We didn’t know much about the area, so we decided to stay the night at the best hotel there and see what was happening.
Of course, our first stop was Costco. We bought some supplies for the next month, plus some wine for the evening, and got out of there. Well, not quite that fast. I had to go to lost and found to get my wallet, plus stop for a big Costco hot dog. (In hot dog terms, they are consistent, large, and one of my grab and go favorites to get.)
At this time, the county/city had limited capacity for indoor seating. After dark, we took a shuttle to Bonfire Brewing, about five blocks from our hotel. Bonfire Brewing became a favorite of mine over Autumn. When I would go to Brau Haus, their IPA that made me the happiest was Firestarter, made by Bonfire. So, being a Bonfire fan and a couple who likes to visit new breweries, we walked in the door to find what we could.
The atmosphere is clearly a brewery. We were lucky and got a table inside. There was quite a crowd in the adjacent outdoor tent. They sounded like they were having fun. Inside, we were two of the four customers. We drank our beer and talked about the cool things we found as decorations around the room. We watched as parties came and went, ordering growlers to go or a quick refill and back out to the tent. Overall, it was a great visit with no hassles.
In less than a couple hours, we were back at our hotel. Across the street was Chinese take out. We ordered, I picked it up. We sat in a bed to each of ourselves and gobbled up good food with fervor.
Getting out of town for a night was great for our minds, emotions, and overall attitude. Being in one spot for so long drove us a bit crazy. We got out in time before we drove each other nuts. Bingo!
The photo above was taken in early Winter. Today the ground is covered in at least a foot of snow everywhere. The weather was great through Christmas break, with a couple feet of new snow falling. This gave Steamboat the chance to open new terrain, …