The weather is clearly changing in Steamboat. Temperatures are cooler. We are experiencing more rain. Along the riverway, some cottonwoods have begun to change color. And the number of tourists visiting has dropped off. This all adds up to the Fall Shoulder Season beginning.
In the Steamboat market, we are seeing some slowing, but not anything of significance. Properties are still getting multiple offers. Some properties are staying on the market a little longer before having an accepted offer. And persons who need to use a loan to purchase are finding more opportunities.
As I said in my last market report, buyers are changing. Similar to national trends, buyers are stepping back from properties that are likely overvalued, priced too high. Often, someone will purchase the property, but it might take much longer and include a price concession.
To me, the amazing part of the Steamboat market is the sale of .25 acre lots for $925,000-$1,250,000. These lots are downtown and often in or near a commercial area. It would be good to hear from a buyer of these lots to find out what their plan is for the land. Hold for years? Scrape and build? What makes a property like this a good investment?
For Stagecoach, builders are making moves. This week a spec house came on the market at $915,000. The contemporary western construction was surprising, as well as the solid sentiment that it could be sold. Having seen the market in Steamboat for the past year, it didn’t seem out of line, just not common. At about the same time, a newer log home came on the market at $925,000 and quickly went under contract.
Hayden has been the talk about town over the past month. This article came out, and then about a week later this article came out. This is very positive for Hayden. Hayden, which is a major bedroom community for Steamboat Springs, is seeing growth from Steamboat’s job market and now it is generating its own job market. For buying a home in Hayden, the pattern of slow to sell is still true, taking several days to a few weeks to get an offer. Home prices have risen as well. It is very difficult to find a home in Hayden for under $350,000.
The overall Steamboat Springs trends remain positive even though a leveling off of activity is occurring. It is subtle and is following the national trend. In my opinion, we are few months behind Denver and the nation. The market will remain strong and values will hold, we just are not going to see the appreciation rate of 2020.