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.