2023 Mid-Year Micro Market Report

MICRO MARKET REPORT

2023 MID-YEAR

STEAMBOAT SPRINGS & SURROUNDING AREAS

2023 MID-YEAR

VALUES ARE UP BUT SALES ARE DOWN

FFor the first six months of 2023, the Steamboat Springs MLS experienced declines in three major categories: listings, transactions, and dollar volume. During a real estate market upswing, similar to what we have witnessed in the past decade, where demand surpasses supply, the key factor lies in listings. Since 2010, when there were over 3,000 listings available at any given time, there has been a consistent decline. The first half of 2023 concluded with 617 listings, marking a significant 27% drop from the 850 listed during the same period in 2022. In a high-demand market, listings serve as the driving force; however, due to an insufficient and unhealthy supply, they are currently inadequate. The substantial decline in sales resulted in a corresponding decrease in dollar volume. This decline was not surprising as it plummeted from $666M in 2022 to $406M in 2023, representing a substantial drop of 39%. However, an indicator for market demand lies within how property values respond. If demand subsides, property values should also decrease accordingly. Conversely, when demand exceeds supply, property values are expected to increase. Throughout the first half of 2023, demand remained robust, leading to a

new record for residential dollar/sf values (including singlefamily homes, townhomes, and condos) in Steamboat Springs. In 2022, the median residential dollar/sf value stood at $667. However, during the first half of 2023, it rose to $750, reflecting a notable increase of 12%. Despite declines in transactions and dollar volume, the significant rise in property values clearly indicates sustained high demand. Moreover, the absorption rate—which measures the rate at which inventory is consumed within a specific timeframe—for the first half of 2023 was the third highest on record. In 2021, an impressive absorption rate of 85% was observed, indicating that 85% of properties listed during the first 6 months were sold within that period. In comparison, 2022 recorded a slightly lower absorption rate of 75%, while 2023 reached a rate of 71%. A “balanced” market is typically characterized by an absorption rate of approximately 50%. As we consider the future, assuming no significant disruptions occur at the national or international level and no major real estate developments are anticipated to enter the market in the near future, it’s likely that the current status quo will remain until additional supply can be made available.

STEAMBOAT SPRINGS

CONDOS

Imagine living your best life and enjoying everything that you love about Steamboat Springs right out your front door or within a short bike ride. Steamboat Springs encompasses the areas known as the Mountain, Fish Creek, Downtown, Strawberry Park, and West Steamboat, stretching from Walton Creek Road on the south side of town to Steamboat II and Heritage Park on the west end. $811/SF

The median price per sf for condos increased another $75/sf over the last year to $811/sf.

TOWNHOMES

These areas tend to have the highest property values, driven by low inventory for buyers and incredible demand. Single family homes have the highest median sale price of $1.55M, followed by townhomes at $1.20M, condos have continued to increase in median sales price of $775K — and also have the highest median price per sf at $811/sf. Although there has been an increase in days on market in other categories besided in land compared to last year, it still remains a very fast moving market, lower than previous years.

SINGLE FAMILY HOMES

97.3%

The median days on market for land in Steamboat has significantly decreased by 97.3%, down to 4 days.

LAND

THE SOUTH VALLEY

The South Valley stretches south of Steamboat Springs, generally along the Highway 131 corridor and along the Yampa River from the tailwaters of Stagecoach Reservoir to Steamboat. Beautiful and picturesque, this area boasts high-end developments with low-density living. Many of the homes in the South Valley are some of the most luxurious in Steamboat Springs and carry the highest price tags – the median price per sq ft for a single family home continues to rise almost 11%, to $692/sf.

SINGLE FAMILY HOMES

10.9% #

The median price per sf for sf homes in the South Valley continue to rise to $692/sf over last year’s $624/sf

LAND

ELK RIVER & NORTH ROUTT

The Elk River area is located northwest of downtown and follows the Elk River to the town of Clark. The area known as North Routt continues north past Pearl Lake, Steamboat Lake, and Hahn’s Peak to Columbine. Prices this year in the Elk River and North Routt areas have increased over last year for single family homes by 45.7%, or $433K. With lack of inventory in the county, land sales are moving faster in this area now, only on the market about 19 days, down 34.5% from the first half of last year.

SINGLE FAMILY HOMES

244% LAND

Median sale prices for land have increased 243.5% for with a median sale price of $292K.

STAGECOACH

CONDOS/TOWNHOMES 22.1% #

The price per sf of a condo/ townhome increased another 22% over the last year after a 50% increase the year prior.

Stagecoach is a residential community located approximately 20 miles from the town of Steamboat Springs, adjacent to Stagecoach Lake State Park. Although this area has historically been known for lower residential price points than Steamboat Springs, the high prices within Steamboat city limits has driven many to the Stagecoach area. The median price per sf of condos and townhomes this year has seen a 22% increase. Single family homes in Stagecoach are coming in just shy of the $1M mark, up 8% from last year from $925K.

$999K

The median sales price in the Stagecoach area sits right at $999K, just shy of the $1M mark.

SINGLE FAMILY HOMES

LAND

SOUTH ROUTT

The South Routt area of the Yampa Valley encompasses Oak Creek, Phippsburg, Yampa, Toponas, and the rural properties in between. These smaller communities have a history and tradition of mining, ranching, and railroading. Prices for single family homes in South Routt have increased to a median price of $535K, with a 43.6% increase, and selling for almost full asking price. In addition to this increase, the price per sq ft has risen 38.3% to $373/sf. The median days on market continue to decreased, hovering around 2 weeks.

SINGLE FAMILY HOMES

38.3%

Price per sf in South Routt for a single family home increased again by 38.3% to $372/sf.

LAND

Hayden lies approximately 25 miles west of Steamboat Springs along Hwy 40. This wonderful small-town environment offers older homes, smaller acreage parcels, and some subdivisions with newer homes. Hayden has historically offered lower price points than Steamboat, however, recently has undergone a “boom” with many newcomers to this quaint community, driving an increase in both demand and prices. Selling in just over a week, single family homes are nearly $550k and, on average, are selling for nearly the full asking price.

8 DAYS

Single Family homes in Hayden are sitting just a little longer on the market compared to last year’s 5 days.

SINGLE FAMILY HOMES LAND

INVENTORY ANALYSIS

ABSORPTION RATE

When analyzing the real estate market, one of the factors that needs to be taken into consideration is absorption rate. Absorption rate is the number of months it would take to sell the currently listed properties in the market.

SINGLE FAMILY HOMES

CONDOS & TOWNHOMES

LAND

Absorption rate is one of the metrics used to attempt to predict home prices and sales activity going forward. The absorption rates noted here indicate how many months it would take for all of the currently listed properties in a particular category to sell, based on the sales activity over the past 12 months.

SINGLE FAMILY HOMES

CONDOS & TOWNHOMES