Recently I visited Ross at his ranch. He invited me out on a Sunday afternoon, and it was another epic Colorado blue bird day. It was easy for me to hop in the truck and journey over to his ranch. He said he lived by …
Steamboat is seeing the end of the Summer approaching quickly. We have had a rush of visitors over the past few weekends, which makes me think school is about to start. We have a bunch of smoke from a large fire near Glenwood Springs, and …
Well, it’s official. Officially crazy, I mean. This is a very busy time for real estate brokers in Steamboat Springs. Not all brokers are busy, but most are. If a broker had business going into the Spring shutdown, they are busy now.
In my past posts, I continued to say we will know a lot more in September. We know a lot more now, and I’m thinking that the current market trend of a hot market will continue through any ‘second wave’ of the virus that comes through. If anything, there will be a slow down due to processes, not a lack of desire to move to/away/up in Steamboat.
Here’s some stats:
The Steamboat Springs market is very vibrant right now. We are probably going to see our most active month since prior to the Great Recession. One third of residential listings are currently pending. Overall, the number of listings is down 38% year over year. And values are holding, not skyrocketing. On pace with Realtor.com statistics, we have seen about 1% growth in values.
Here’s more stats:
These are from The Hustle, a free email newsletter on many news items, especially business oriented.
Though we are having great business in real estate today, there is an undercurrent of not so good news. In fact, these numbers represent a major part of our population and as long as COVID is a part of our lives, these numbers are likely to persist.
Of those smart people that I study, most agree that there could be problems in some sectors of housing upcoming. There is also comments about problems in the jumbo loan market, where persons wanting a loan above Freddie Mac and Fannie Mae are willing to lend will continue to have trouble getting monies.
In a recent Colorado Group Realty meeting, we received a number of statistics. These reflect those above:
Times are interesting!
September is around the corner. You’ve heard me talk about September and I’ll explain why. Locally and nationally we have good statistics to understand markets in the COVID reality. In September, I believe we will understand more than ever about what may be ahead in relation to government actions and more shutdowns. This will be an indicator to me the next six months after. To me, Winter looks like a challenge for everyone.
Here is an excellent article from the Colorado Sun that discusses case increases in Colorado and what Fall will look like, particularly in our hospitals. This is what I’m talking about. If there is a surge in cases, good chance many activities will remain closed and some cease. And this is just Colorado, who has kept a good record with the virus in comparison to other states.
If skiing is shut down, even partially, this season, there is likely to be an affect on second homeowners and the hospitality industry the most.
In closing, the values of real estate should remain flat for at least a month or more. Increases in value come from short supply, which appears most in units valued under $600,000. For the long term, real estate in Steamboat will continue to be in demand, and persons are moving around.
Camping makes me happy. Being outdoors for long periods of time, and a lot of that time is with my feet up under a shade tree. Depending on the trip, activities will include fishing, hiking, cooking, and sitting around telling stories. This year, camping has …
Steamboat has been a great place to weather the world’s pandemic. The weather has been mixed Spring showers and sunshine. The pattern broke at the end of May to be brilliant Spring. Daytime temps are in the low 70’s. Overnight temps are in the low 50’s. The Yampa River reached its peak at the beginning of the month, with flows moving fast enough for adventure floaters. If everything goes well, the river will keep plenty of water in it and the Summer temperatures stay under 90 degrees.
Really, my headline is a bit misleading. There are some new things in Steamboat, but not many. The big new things are like yours – being allowed to shop, eat out something that’s not take-out, and visit local social places in small numbers.
With the changes in Colorado opening up for business, we have been able to be ahead of other communities with Colorado State granting waivers to open up earlier. We have been eating out, enjoying strolls downtown, and visiting favorite stores, like Straight-line Fly Fisherman.
Still no group settings. Groups of up to 50 are expected to be allowed soon, as well as live music. What this will look like is unknown. What I can say is I have a lot of friends itching to see some live music…
My wife and I had a treat of experiences when Steamboat was opening up. Old Town Hot Springs was taking reservations only for the first week they opened. We got an early evening time, for an hour, which is what all reservations were. When we got in to the pools area, we found that only 18 people were allowed in! We essentially had private pool area to ourselves! This is rare, and often happens only at 5:30 am when the facility first opens.
There have been other similar experiences we have had, like eating out with no one around or being the only persons is a store that is normally crowded. These are small town things, and they make us happy nonetheless.
What’s going on in Steamboat? Much of it is navigating when and where to meet friends, celebrate a birthday, planning the next camping trip and more. There are many people visiting Steamboat right now – there are visitors enjoying late night howling, swimming in pools, lots of mountain biking, and people hiking to see wildflowers and waterfalls.
So, not much is going on. All events have been cancelled for the Summer, so what is left to do is much why we live here. Being outside, enjoying nature, finding the best beer for the afternoon, and saying hello to passerby’s.
Steamboat has begun to open up, not just restaurants, but also periwinkle, larkspur, and more. Lincoln Avenue is lined with white crabapple in full bloom. The smells and sights are excellent! The past few months have been quite exciting in terms of conversations of what …
Coronavirus has been a challenge everywhere, including Steamboat Springs. It seems only Montana and other rural states have been spared pain that many of us have been working with for over two months. For real estate, now that some time has gone by, understanding trends is more discernible now.
In past blogs, I talked about a maximum of 10-14% drop in market value. That looks like up to 5% today. Except for the great recession, real estate values have dropped minimally during stressful times like now. In fact, this week Zillow announced it thinks the bottom in real estate has occurred.
My biggest conundrum in considering where things are going is what is going to happen over the next year. Are folks going back to work? Will people travel? Travel far? From The Hustle, this is what they offer:
It’s a mixed bag. Even with some people braving travel and restaurants, the number of people spending is going to be down. This being said, one statistic that impressed some economists is that household savings rates increased 13%. Impressed is the wrong word. Surprise is the better term. This to me indicates that families have again evaluated what is important to them and have made choices relating to this.
I don’t know what is going to happen and I expect many economists and brokers to change their minds consistently, at least through June.
Sales trends for Colorado Group Realty are better than most brokerages. We have been executing contracts and working with the community to support local non-profits. We are seeing those who have to move making the most transactions. Otherwise, many people are waiting to see what happens over the next months. New listings are being valued at February prices. (This is curious to me. It doesn’t make sense. It seems the properties getting the most attention are not second homes. And those properties priced at the top end of price per square foot value are slow to show.)
For this Summer, I have seen many owners lower their expectations with rental income. Smart landlords are being aggressive to get tenants. Some are holding and seeing if things change back to old normal, and if the resort will open this Winter. Irrespective, if the resort does not open this Summer, there will be few travelers or employees who are looking for places to stay.