CONDO MARKET UPDATE

The Steamboat condo market has certainly seen its ups, downs, and ups over the past several years. Transactions hit bottom in 2009, posting a mere 48 sales in the first 3 quarters of the year. Since then, demand has slowly and steadily continued, and 2018 prices are now seeing pressure from limited inventory. Through 3rd Quarter 2018, higher demand and limited supply resulted in a 7% rise in median price year-over-year, from $354K to $369K, and a 14% drop in transactions, to 169.

LOCATION, LOCATION, LOCATION…

What are the trade-offs of owning a slopeside condo vs. one a few blocks away? Well, you can get more condo for your money the further away from the slopes you are willing to go; but a slopeside condo offers the ultimate convenience and likely the ability to generate more income, should you decide to rent it out. Based on a price per square foot analysis, values are about 20% to 25% higher for a condo on the slopes than one a few blocks away. But, which location is a better investment? The answer largely depends on the motivation, purchasing power and needs of a buyer.

OLDER – VS– NEWER SLOPESIDE CONDOS There is a significant difference between the older and newer models of slopeside condos. Thus far in 2018 the average price for newer slopeside condos is $786,000 ($623/sf ) while the more vintage units are $394,000 ($415/sf ). Historically we have seen even greater disparity between the two, depending on which developments post sales. In general the $/sf for condos in newer developments is nearly double that of older developments. However, the market trends of the two product types are strikingly identical when compared to the values of the same properties in 2009. Older condos are at about 82% of the 2009 values, and newer ones are between 70-80%, depending on the development where they are located.

At present, demand for condos is high, but buyers have few options. With supply lines now unable to meet the near record-level demand, we will likely look back on 2018 as a critical turning point in the condo market in Steamboat Springs.