Posts Tagged ‘Absorption Rate’

Steamboat Springs Absorption Rate Shows Healthy Market

Thursday, March 16th, 2017

Steamboat Springs Absorption Rate Shows Healthy Market

Absorption rates are a strong indicator in determining the health of a Real Estate Market. For those of you who have heard us use this term but aren’t sure what it means: absorption rate is defined as how many months it would take to sell all the homes currently listed for sale, at the current rate that homes are selling.

A healthy real estate market is 5-7 months worth of inventory e.g. if there were 60 homes listed for sale and on average 10 homes sold per month, the absorption rate would be 6 months. An absorption rate much less that this would suggest a sellers market (demand exceeds supply, higher prices) while a rate much greater indicates a buyers market (surplus supply, greater negotiating power).

In Steamboat Springs the absorption rates have shown some fluctuation, but the latest figures indicate a healthy market overall:

A CO A SFH A TH

Steamboat Springs, CO Real Estate Report

Thursday, November 3rd, 2016

Steamboat Springs, CO Real Estate Report

How’s the market Charlie?  Well, I’d have to say the majority of the real estate market is very good. Running the current absorption rate, we see almost every segment of the market is very good with a couple exceptions. Medium to high-end condo activity remains slow with limited buyers and high inventory. Other than that, its trending to be a seller’s market with prices on the rise.

 

Steamboat Springs Absorption Rate

Steamboat Springs Absorption Rate

Steamboat Absorption Rate Nov 2016

Routt County Real Estate Market 

Third quarter figures are out with a great close to September 2016, with 176 Transactions and $80.5M in Gross Volume. Year over year figures show September Gross Volume up +36.55% and transactions up +32.33%!

There was particularly strong sales of upper end properties in September – 19 properties sold for over $1M, including a ranch listing just outside of town for $7M. In August 2016 there were 11 properties sold for over $1M.

Steamboat Springs, CO Real Estate Report

Monday, August 1st, 2016

Steamboat Springs, CO Real Estate Report

The Yampa River is starting to lose steam as our dry and hotter than average summer continues! As reported by the Steamboat Pilot & Today, the Yampa is running at 132 cubic feet per second through downtown Steamboat Springs today. The average for this date is 209 cfs.

 

Image courtesy Steamboat Springs Chamber Resort Association

Image courtesy Steamboat Springs Chamber Resort Association

If you are still wanting to kayak, paddle board or tube the river don’t wait much longer or you might miss out for this summer!

Routt County Real Estate Analysis 

June saw good year on year gains with $82.8M in Gross Volume and 168 Transactions, up 34.31% and 16.67% respectively from June 2015.  Year to date figures are also showing overall gains from the same YTD 2015 – a 20.17 increase in dollar volume of sales and 6.63% increase in number of transactions.

 


Residential Transaction Price Point Analysis June 2016

Steamboat Springs, CO Real Estate Report

Monday, February 29th, 2016

Steamboat Springs, CO Real Estate Report

With the warmer weather of late, it feels like its almost time to say goodbye to another winter in Steamboat Springs. But hold onto your hats, we aren’t there yet! There is still plenty of snow and lots of adventures to be had before the melt, so enjoy it while it lasts!

Spring is in the air

Spring is in the air!

Routt County Real Estate Analysis

It has been a strong start for Routt County real estate in 2016. Gross sales totaled $37.2M, up +12.36% compared to last January.  This comprised 77 transactions, an increase of +8.45% compared to last January. Fun facts: almost two thirds of buyers were local to the community and 37% of sales were cash transactions.

 


Residential Transaction Price Point Analysis January 2016

 

Price Point

# of transactions

% of transactions

% of gross volume

% of transactions 2015

% of gross volume     2015

When Is The Right Time To Sell?

Friday, February 26th, 2016

When is the right time to sell?

Well the answer to that will depend on your personal and financial situations, but if you have been hedging whether to list or not, here’s something to consider: ABSORPTION RATE.

In the real estate world, the absorption rate is like a barometer for the health of the market. It is a calculation based on current listings and average sales per month. For example, in the last 4 months a total of 8 homes sold – an average of 2 homes per month. Currently listed for sale in that same market is 25 homes. So based on current averages it will take 12.5 months to sell the existing inventory. Now that doesn’t factor in new listings that may arise, but it is a snapshot of the market at this particular time. And more importantly, by monitoring the absorption rate of the market we can get a picture of how the market is trending.

Steamboat Springs, CO Real Estate Report for November

Friday, January 1st, 2016

Steamboat Springs, CO Real Estate Report

 

Silver ornament, photo by Charlie Dresen

Let it snow, let it snow, let it snow. And that’s exactly what has been going on here in the ‘Boat. Record snow fall and record real estate numbers.

Routt County Real Estate Analysis

November saw a 55% increase in sales volume over last November.  And Year To Date we are 11% over 2014 in sales volume. So 2015 is shaping to be a very good year for real estate values.  Transactions were up as well seeing a 38% increase in the number of transactions over November 2014. Keeping with strong numbers, Year To Date transactions are up 6% from 2014.


Residential Transaction Price Point Analysis

 

Price Point

# of transactions

% of transactions

Previous month % of transactions

% of volume

Previous month % of volume

Under $500K

47

63%

59%

30%

21%

$500,001 – $1M

19

26%

29%

29%

34%

Steamboat Springs, CO Real Estate Report

Saturday, November 7th, 2015

Steamboat Springs, CO Real Estate Report

snow and ski swap

 

Steamboat locals have packed away summer outdoor gear and are breaking out winter gear and clothing as we watch the slopes of the Steamboat Ski Resort being covered in snow, beautiful snow. Speaking of ski slopes, if you are still in need of gear or clothing, check out the annual Steamboat Springs Winter Sports Club Ski & Sports Swap.

 

Routt County Real Estate Analysis

Routt County is seeing resurgence in new home builds, echoing the national uptick in new home starts. According to an article in the Steamboat Pilot & Today on October 27, there were 5 new home building permits issued in September, all for homes with valuations of $829,000 to $1.4M. Two of those are for land initially purchased in 2004 before the market slowdown. Construction crews around town are busier now than they have been in years, not just with new builds, but also with remodels and additions. All good signs for the Routt County real estate market.

Steamboat Springs Real Estate Report

Tuesday, October 13th, 2015

Steamboat Springs, CO Real Estate Report

 

Yampa Valley Fall Colors

Yampa Valley Fall Colors

 

I hope you were able to see the beautiful fall colors here in the Yampa Valley over the past few weeks. At this point, most of the leaves have fallen and the mountains are looking ready for snow.

Speaking of which, you know that Old Man Winter is just around the corner, right? Is your home ready? Click here for a checklist of things to do to prepare your home for the cold and snow.

Routt County Real Estate Analysis

August continued the trend of strong real estate numbers and transactions for Routt County. Gross sales for the month was $62.4M, up +24+% compared to August 2014 and up +11.79% year-to-date.  150 transactions were closed in August. That’s the most transactions August has seen in 5 years.


Residential Transaction Price Point Analysis

 

Price Point

# of transactions

% of transactions

Previous month % of transactions

% of volume

Previous month % of volume

Steamboat Springs Real Estate Report

Thursday, April 30th, 2015

A Real Estate Slow Down – But don’t freak out!

The absorption rate is a strong indicator of the health of the real estate market. It’s measured in month of inventory and how long it takes for real estate to sell.

A healthy real estate market has 5-7 months worth of inventory.  But Steamboat Springs has such diverse properties that we have to look closer. I broke it down by price-points and Single Family | Townhome | Condo.  This is only properties within the city limits. Yes, we’re seeing a bit of a slow down. But it’s also mud season and a slow time for real estate – so don’t read too much into this.

Single Family Homes

Single Family Homes

 

Townhomes

Townhomes

Condo

Condo

Steamboat Springs Real Estate Report

Monday, January 5th, 2015

Steamboat Springs Real Estate Report

Happy New Year! I hope that your holidays were joyous and the new year prosperous.

As we head into 2015, let’s talk real estate and absorption rate. This is the rate at which available properties are sold in a specific real estate market during a given time period. As you see, for most of our market, we are seeing good improvements.  Keep in mind, a normal healthy real estate market has about 6 months of inventory. More than 6 months is a “buyers market” and less than 6 months is a “sellers market.”

Single Family Absorption Rate

Single Family Absorption Rate

Townhome Absorption Rate

Townhome Absorption Rate

Condo Absorption Rate

Condo Absorption Rate

 

 Local Steamboat Springs Market

November was a decent month for Routt County real estate transactions with $41.4M in gross sales and 106 transactions.  While this is down from what we’ve seen over the past few months, it is still good for this time of year and the best November we have seen since 2009.