June 2020 Steamboat Springs Market Report
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 is happening market-wise as well as what might happen. If you’re a reader of this blog, you know that it has been hard for me and other professionals to get a handle on what we is going on and where is this likely to go.
One statistic I have more confidence in more than normal is the National Association of Realtors saying the change in home values this year will be 1.1% up in value. This comes after a strong beginning to the year. Summer is anticipated to be active and then momentum slows for the remainder of the year.
They are saying similar statistics for next year. Forecasting next year is a difficult activity. In my opinion, predicting next year without seeing what Fall brings is unsafe. There are positive things to consider for next year, such as the stock markets have seen growth that eliminates earlier losses from this Winter. And there are many people able to be employed differently now, especially opening up in the trades areas.
What aggravates me are discussions that don’t include how we interact globally. Around the world, most major economies have suffered and will need time to recover. As well, developing countries will not have the support of larger economies spending in their borders. Steamboat Springs is a world class destination area. We rely on international visitors and supply chains. The disruption in these areas will take time to recover, and some will not recover without demand occurring first.
Home prices are stable in Steamboat. Prices are neither going up or down, generally speaking. Rent prices are going down, with 2 bedroom units in March seeing $2200-2500 a month. Today, those same properties are $1800-2000 a month. Competition is growing because travelers are fewer, HOA fees due monthly, and mortgages.
I have often said to watch the Denver market. Here’s a great article in Westword on current Denver trends discussing the current market.
Good stuff from NAR:
Nationally, it appears that Buyers think they may pay too much for a home or are going to get a good deal. And Sellers think values are stable and will get their asking price. This is a common dynamic and it’s early to say which is more correct.
What are people searching for and spending money on?
RV rentals and purchases
Source: NAR and The Hustle
Folks are building lives around being at home. When the current pandemic concludes, many families will have changed patterns. What happens later is part of the reason I say we will know so much more in Fall.
What I can’t find right now? A used PS4 at a reasonable price. Who would have thought?
Overall, I’m positive about changes in the markets and can see that things are going to get better. What will be able to guide our understanding of what this will look like is Fall.