What. A. Year. One for the ages. 2021 was a banner year for real estate nationwide, especially in the Yampa Valley. In spite of the shortage of listings, 2021 sales in Routt County shattered records. To put it into perspective, in 2019 through November there was a healthy $642M in sales volume in the County. Last year, through November, that figure ballooned to $952M. This year, to date, there has been nearly $1.33 billion in sales volume! While the number of transactions is up from last year (1,563 compared to 1,321), price appreciation is really what is driving the massive sales volume growth.
Single family homes in Routt County have gone up 25%, while values of condos and townhomes increased an eye-popping 38%. In Steamboat Springs, the numbers are even more stark with single family homes up 40%, while condos and townhomes have increased in value by 42%.
Looking back on the past year, nobody could have foreseen such a market at the beginning of 2021. This past spring, Fannie Mae and Freddy Mac predicted that rising interest rates, low supply, and high demand could cause a slowdown in market activity. Shortly thereafter, pundits began predicting the real estate bubble to burst, except there has been no bubble. The arrows just kept trending upwards. Surging sales have been partly due to Routt County having been affected by both the Great Reshuffling (migration from metro areas into rural ones) as well as the Great Resignation (workers leaving jobs and not coming back).
In 2022, the outlook is likewise difficult to predict. Similar to last year, we’re still battling a nationwide pandemic. The Federal Reserve is indicating they will raise the federal funds rate (how much banks pay one another in interest to borrow funds on an overnight basis from the federal reserve) which could indirectly affect mortgage rates. Labor shortages are likely to persist. Housing demand will probably remain high, due to the incredible nature (pun intended) of the area in which we live. The big question is, will there be supply?
Despite all of the unpredictability of the coming year, one thing remains certain for 2022: Colorado Group Realty will continue to deliver unprecedented service to our clients. For the second year in a row, you have voted CGR the top real estate company of Routt County in the annual Best of the Boat competition. For that, we thank you.
I’m the realtor that looks forward to rolling up my sleeves and digging in. I know this valley. What I don’t know, yet, is you. Getting to know you ensures that I understand what’s important to you so we can start ticking all the boxes on your checklist.
What else do you need to know about me? I love what I do. I love this place I get to call home, and I’ll be by your side from introductions to closing because you’re not just my client. Soon, you’ll be my neighbor.