Paul Dales, senior U.S. economist at Capital Economics, summed up the real estate conundrum in the Huffington Post, “The most likely scenario in the U.S. is that in 2012 prices will bob around a bit, with one month’s gain being reversed the next month. In general, over the next couple of years, house prices will do nothing more than remain broadly stable.” I couldn’t agree more and stated much the same sentiment last summer as I watched the Steamboat Springs real estate market waver; up one month, then down the next.

case shiller nov 2011

The November Case-Shiller Home Price Index continues to paint a dismal picture of a housing market mired down by homes in foreclosure, unemployment rates still high in many key markets, and overall economic uncertainty. Even record low mortgage rates aren’t helping since loan qualification standards remain stringent and in many cases out-of-reach.

Here are some not-so-high-lights from the November Case-Shiller Price Index:

* For the second consecutive month, 19 of 20 cities saw home price decreases with the 10-city composite coming in -3.6% versus November 2010, and the 20-city composite down -3.7%

* Atlanta, Las Vegas, Seattle and Tampa all reached new lows in November

* From 2006 peaks, both Composites are down close to 33% through November

* As of November 2011, average home prices across the US are back to mid-2003 levels

While they are few, the high-lights from November’s Case-Shiller are:

* Detroit and Washington DC posted positive annual returns of +3.8% and +0.5% respectively

* Phoenix posted a monthly gain of +0.6%

I stand by my conviction that real estate is local, and while the Steamboat Springs’ real estate market continues to struggle for traction, inventory is lower and in some segments completely cherry-picked, and our local economy is showing some positive signs. I am optimistic that in 2012 at least some home price segments will rebound, and that we’ll see sustained economic improvement in both Steamboat Springs and our second/vacation home feeder markets.

—For more information on buying real estate or questions regarding Steamboat Springs real estate  in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie

Steamboat Springs’ real estate market did not earn great marks in the recent Colorado Mountain Resort Real Estate Trends released by Land Title Guarantee Co. As compared to 5 other Colorado ski resort counties, Routt County, home to Steamboat Springs, is the only county that decreased 6% or more on 5 key benchmarks^ in 2011 as compared to 2010:
*  Gross Sales Volume: -12.01% (Eagle & Grand Counties were down >6% as well)
* Number of Transactions^: -23.06% (All other counties were flat to up)
* Single Family Average Home Prices: -22.73% (Eagle & Garfield Counties were down >6% as well)
* Multi Family Average Home Prices: -33.52% (Eagle, Garfield & Summit Counties were down >6% as well)
* New Development: -52.51% (Eagle, Garfield & Summit Counties were down >6% as well)
^ For Routt County specifically, there was a high number of fractional sales transactions in 2010 vs. 2011, so if you net out fractional transactions and compare improved units sales transactions only for 2010 vs 2011, Routt county is actually up almost17%.

Steamboat Springs’ Routt County real estate market historically has been most comparable to Summit County, home to Breckenridge, Keystone and Copper Mountain ski resorts. In 2007’s real estate market peak, Routt County/Steamboat Springs reported $1.58 billion in sales while Summit County earned $1.63 billion in sales. Fast forward to 2011, and there is a much wider gap in real estate performance on key metrics:

2011 Sales Dollar Volume
Routt County, Steamboat Springs = $450.6M (-12.01% versus 2010)
Summit County = $684.2M (-2.03% versus 2010)

2011 Single Family Homes Average Price Per Square Foot
Routt County, Steamboat Springs = $229.35 (-17.77% versus 2010)
Summit County = $252.68 (-6.11% versus 2010)

2011 Single Family Home Average Price
Routt County, Steamboat Springs = $631,224 (-22.73% versus 2010)
Summit County = $734,262 (-4.74% versus 2010)

While these 2011 year end numbers are certainly not good news for Steamboat Springs when compared to short term history, what they do point to is the potential for great improvement in the Steamboat Springs real estate market as we move into 2012. Reasons for optimism include: new jobs in the coal mining industry, lower inventory than we’ve seen in a while and aggressive sales and development plans for some key real estate projects. And for Buyers, Steamboat Springs is an incredible value right now, but inventory is decreasing  in some key price segments. It remains to be seen how  long it’ll be before the supply/demand equation tips the scale to increasing prices in some of the more sought after price segments.  

As I’ve stated before, the real estate market is local, and Steamboat Springs is not on the I-70 corridor which captures the majority of Denver visitors, a real estate market that has rebounded already. Steamboat Springs pulls a good portion of its buyers from out-of-state feeder markets many of whom have not had economic rebounds as yet. While poised for growth, the Steamboat Springs real estate market is somewhat more dependent on the national economic recovery and the availability of affordable mortgage financing for second/vacation homes than some of the Colorado ski resort counties we benchmark ourselves against.

—For more information on buying real estate or questions regarding Steamboat Springs real estate  in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie

Listing syndicate websites like Zillow.com, Trulia.com and Realtor.com and many more offer information to the public regarding real estate. But much of this information might be misleading and false. These very popular websites have taken off and are very popular. They do offer great information and have many helpful tools, but there’s also a side to these real estate sites that many are not aware of. And it seems the information these real estate site provide are now being questioned by experts.

Zillow and Trulia exist to make money. Period. They make money by selling advertisements to Realtors. These long-term contracts paid out by Realtors to gain leads and exposure. These Realtor are touted as being the experts in the area. But those experts are the ones willing to pay the most for those advertised spots. They might be experts and they might not. But Zillow and Trulia are willing to take their money either way. I don’t mind that, what bothers me is the misleading information that these site provide regarding real estate information.

My hat’s off to those willing to question these real estate websites and take a stand.

Regards,

Charlie

There’s no better address in Steamboat Springs (also known as Ski Town USA) than “Mountain Area.” It’s where everyone wants to be in the winter and with base area redevelopment plans well underway, summer mountain activities might soon rival the world class skiing Steamboat Springs is best known for. You would think being a next door neighbor to a world class ski resort might be cost prohibitive, but surprisingly there are some great single family home deals available.

Home sold for $400,000 in the Mountain Area in Steamboat Springs

Presently there are 5 single family homes for sale under $500,000 in Steamboat Springs’ Mountain Area neighborhood. The average price of the 5 homes is $428,880 and the average price per square foot is $274.38.

Steamboat Mountain Area

Steamboat’s Mountain Area neighborhood is in demand for more than vacation home condos. Since June 1, 2011, there have been 4 single family home sales under $500K in the Mountain Area at an average sell price of $400,000 and average price per square foot of $204.00.

If you’re looking to be where the action is centered in the winter time, and where summer activities might soon outnumber winter activities, the Steamboat Springs’ Mountain Area is where you’ll want to call home. Locals already think of it as a year-round playground where skiing champagne powder is a passion in the winter and mountain biking takes precedence in the summer…but all that is about to change as the National Forest Service is poised to allow a wider range of summer activities on National Forest land – which is what the Steamboat ski mountain is. So if it’s a big playground in your back yard at a great price that you’re waiting for…wait no longer; it’s ready and waiting for you.

—For more information on buying real estate or questions regarding Steamboat Springs real estate  in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie

Downtown Steamboat Springs is the center of community activity, and with free buses to the ski mountain, it’s the best of both worlds. Howelsen Hill, Colorado’s first established ski area, is within walking distance, as are retail stores, restaurants, pubs, tennis courts, ice skating rink and a state-of-the-art public library. The Yampa River borders the edge of Downtown Steamboat and provides world class fly fishing along with tubing in the summer months. With urban living at your beck and call, you might not think affordable single family homes would be available, but they most certainly are.

Home Sold in Downtown Steamboat Springs

Presently there are 8 single family homes for sale under $500,000 in Steamboat Springs’ Downtown, or Old Town as it’s known locally, neighborhood. The average price of the 8 homes is $409,437 and the average price per square foot is $326.91.

Downtown Steamboat Springs

Steamboat’s Downtown neighborhood has enjoyed strong sales activity in recent months. Since June 1, 2011, there have been 15 single family home sales under $500K in the Downtown area at an average sell price of $371,866 and average price per square foot of $227.10

If you’re looking to relocate to an area that will only become more vibrant as the new mixed use buildings began to flourish, then the Downtown neighborhood in the heart of Steamboat Springs is the place to start looking. Convenience is a given and western charm provides a feeling of community that is rare in an international world class ski resort. You’ll be steps away from everything urban, and only minutes away from champagne powder at Steamboat Springs’ ski mountain.

—For more information on buying real estate or questions regarding Steamboat Springs real estate  in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie

The  Fish Creek Falls neighborhood in Steamboat Springs is an affordable and sought after neighborhood. Situated between the Steamboat Springs ski mountain and downtown Steamboat Springs, the Fish Creek Falls neighborhood is close to everything including schools. Biking/hiking trails wind through the Fish Creek  area and can take you just about everywhere in Steamboat Springs as long as you aren’t toting skis to the ski mountain or groceries from Safeway.

Right now there are 6 single family homes for sale under $500,000 in Steamboat’s Fish Creek Falls neighborhood. The average price of the 6 homes is $437,083 and the average price per square foot is $255.53.

Steamboat’s Fish Creek Falls neighborhood is a popular place to call home. Since June 1, 2011, there have been 4 single family home sales under $500K in the Fish Creek Falls area at an average sell price of $387,000 and average price per square foot of $201.36

If you’re looking to relocate to a perfect family neighborhood area, and think you have to live outside of the Steamboat Springs city limits to do so, you definitely have to see the Fish Creek Falls area first. I live in the Fish Creek Falls neighborhood and can speak first hand about the convenience of living less than 5 minutes to downtown Steamboat Springs, and less than 10 minutes to the Steamboat ski mountain, and having all the advantages of a true family friendly neighborhood too.

—For more information on buying real estate or questions regarding Steamboat Springs real estate  in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie

Taco Del Barco in Steamboat Springs

Every town needs a taco stand. Steamboat Springs now has one. I’m not talking about a Mexican restaurant, we have those.  I’m talking a taco stand. I’m talking about a place you can walk up to, smell the sautéed meat cooking on the griddle, immerse yourself in Mariachi music, order up a couple Carne Asada tacos, slap down a $5, wring out some lime and feast on some flavors authentic to Mexico. It’s like a quick time-travel to Mexico city for lunch. Now in Steamboat Springs, you can do that . . . almost.  

Carne Asada Taco in Steamboat Springs - Taco Del Barco

My hopes were high as I walked up to the new Steamboat Springs taco stand on Monday at 12:26  fittingly named Taco Del Barco (The ’Boat’s Tacos, in Spanish). Almost everything I had envisioned rang true. Almost. Overall, the flavors of my Carne Asada were very good. The steak was tender and very juicy. The onions, peppers and other flavors used were fresh and tasty. The corn tortilla was warm. It was a great lunch and very yummy. But, there was no music and it cost me $5.50 for two tacos and my belly is not full.

To me, tacos stands are about value and tasty, fast Mexican food. I know I’m in the resort town of Steamboat Springs, but still, I expect to have a full stomach for around $5-7 dollars – especially at a taco stand. This was not the case at Taco Del Barco in Steamboat. I could have eaten 2 more. But that would have been an $11 Carne Asada lunch. So, my review of  the new Mexican Taco Stand in Steamboat Springs – Taco Del Barco, a good start but they need some Mexican music and either larger portions of lower the prices to $2 each for taco’s.

Authentic Taco stand in Steamboat Springs - Taco Del Barco

Tacos del Barco  is located in front of the Space Station at 7th Street and Lincoln Avenue. It’s open from 11 a.m. to 7 p.m. Mondays through Saturdays and from 11 p.m. to 2 a.m. Friday and Saturday nights.

See the write up in the Steamboat Pilot.

Regards,

Charlie (your Local Steamboat Realtor)

Menu

Menu at the new Taco stand in Steamboat Springs

The snow banks might not have been high around Steamboat Springs at the end of 2011, but the Steamboat Springs real estate market ended the year on an overall positive note. In hindsight, the real estate market in Steamboat Springs is still trying to achieve sure footing on what has been a slippery slope throughout 2011, but there are some positive signs where a year ago we were not seeing much to be optimistic about. While some price points are doing well, others are struggling, and bank owned sales are driving actual dollar volumes down overall. So what does it all mean? While there are signs of reasons to be optimistic, there are some critical factors involved that will keep the market on its proverbial toes:

*  the number of foreclosures poised to hit the market that haven’t yet (shadow inventory)

*  the unemployment rate both here in Steamboat and in feeder markets where many second home buyers come from

*  the ease (or lack thereof) of getting financing – there are strict requirements for obtaining second home financing, and as long as they are in place, it’s a deterrent

Snow Making at Steamboat's Howelsen Hill

Factors (like snowfall) over which we have no day-to-day control over will continue to play important roles in how quickly we see sustained real estate improvements in Steamboat Springs. In the meantime, here’s a recap of how we ended 2011 which is something to take a moment to be thankful for before turning to 2012, and starting a new year with a fresh perspective in Steamboat.

136 December transactions brought in just over $47M in sales volume. December 2011 transactions were up 72.15% over December ’10 transactions, but at $47M in sales we were down 13.19% versus December 2010.

Year end comparisons of 2011 versus 2010 are a little disappointing, but are driven in large part by the 3 macro economic factors listed above:

*  2011 ended with a total of just under $450.6M in sales,  down 12.01% from 2010 year end

*  2011 total transactions numbered 1398, down 23.06% from 2010 year end numbers

On a positive note, Steamboat real estate inventory is down which means those homes still on the market will have greater value to prospective buyers who desire to live Ski Town USA.

December 2011 Routt County Real Estate Report

Highlights of the December ’11 Real Estate Report

*  12 transactions were $1M plus

*  Bank Sales were back up at 18 after being at 15 in November and only 6 in October

*  The Mountain Area continued its sales and transaction dominance with 27.2% of the month’s transactions (37) and 50.3% of the month’s sales volume ($23.7M)

Highest Price Per Square Foot (PPSF) Sale for December 2011:

12/30/2011: $2,825,000 Edgemont Condo Unit 2803 aka2410 Ski Trail Lane, #2803–5 Bedroom 5 Bath YOC 2009 with 3,642 SF Living Area.  PPSF is $775.67.  This is a new construction sale onSteamboatMountain.

Highest Priced Sale for December 2011:

12/29/2011: $4,500,000 City South Subdivision Lot 1, Mid Valley Business Center #2Lot2, M&B: Sec 20-6-84 – 3 Commercial Parcels:  All Vacant Commercially zoned, with a combined land size of 14.52 AC.  This property is located at1440 Pine Grove Road.  PPAC is $309,917.  This was a Bank Sale.

Other December Sales over $1.4M:

12/28/2011 $2,050,000 Sanctuary Subdivision #5 Lot 132 Re-plat aka 3050 Clearwater Trail –  4 Bedroom 4.5 Bath YOC 2006 with 5,808 SF Living Area on 1.48 AC Land.  PPSF is $352.96.

12/14/2011: $1,425,000 Big Valley Ranch at Steamboat Subdivision #2ALot25 aka28880 Skyline Drive– 3 Bedroom 3.5 Bath YOC 1992 with 4,636 SF Living Area on 36.10 AC Land. PPSF is $307.38

—For more information on buying real estate or questions regarding Steamboat Springs real estate  in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie

In Steamboat Springs, the cost to heat our homes is important.  When buying real estate in Steamboat Springs you need to know how the property is heated.  How it’s done and what is used can make a huge difference. Natural gas is available here in Steamboat Springs so that’s the very common fuel used to heat Steamboat homes. But many Steamboat homes are heated with propane. Heating with propane is more expensive than heating with natural gas.  Buying real estate is more about what you can afford or buying a month payment than the price of the home.

Heating with gas in Steamboat Springs

But home ownership is so much more than being able to pay the mortgage amount every month. And the cost of heating your home today must not be overlooked.

A New York Times article highlighted the rising cost of heating oil for homes. It’s estimated that the cost to heat a home with heating oil this year will be $2,383. The same home heated with natural gas would be $951 for the year.

Cost per month of heating a home:

•  Propane  = $226 per month

•  Natural gas = $79 per month

If you were buying a home today, the cost of heating that home is critical to what you can afford. Taking in the difference from heating with oil and heating a home with natural gas, the difference is huge.

• If you bought a home with natural gas heat you could buy a home for $300,000.
• If you bought a home with heating oil heat you could buy a home for $277,000.

The breakdown:

$300,000 = $1,922 Mortgage + $79 gas heat = $2,001

$277,000 = $1,775 Mortgage + $226 propane heat = $2,001 

So, if you’re buying real estate, it’s important to see how that home is heated. Most buyers see the heating cost as an after-thought when in fact it’s very important to factor in the cost of heating a home prior to purchasing real estate.  Ask for the utility records prior to buying real estate. Don’t overlook the cost of heating a home today.

You get what you pay for in heating. Efficient home heating sources are worth every penny and when heating in the Rocky Mountain, it’s critical to do it right.

Regards and stay warm.

Charlie

Real estate is local. The market could be hot in Austin, Texas yet declining in Chicago, Illinois.  Much of this has to do with jobs.  In areas where we are seeing sustained employment growth, we also see a healthier real estate market. This is true for Silicon Valley in California where real estate is booming.

Jobs aside, there’s real estate data that I have reviewed that suggest real estate prices could rise in the near future and the two graphs below will help demonstrate why historical data makes me optimistic for Steamboat Springs real estate.

The first chart shows actual home prices and home prices adjusted for inflation. As you see, since 1890, home prices adjusted for inflation have been relatively stable fluxuating between $125,000 to $150,000 for over 100 years. In the real estate bubble we saw home prices spike in 2006. The rise in real estate values was unprecedented and irregular. Over the last few years real estate values have dropped and are now more in-line where they would have been had we not had the real estate bubble.

Historical Data Makes Me Optimistic for Steamboat Springs Real Estate

The next graph correlates with the graph above although using the Case–Shiller Home Price Indices . The Case–Shiller Home Price Indices is a division of S & P or Standard and Poors.  The S&P/Case-Shiller Home Price Indices are the leading measures for the US residential housing market, tracking changes in the value of residential real estate both nationally as well as in 20 major metropolitan regions.

home prices case shiller trends

Similar to home prices adjusted for inflation, if you draw a line following the Home Price Trends, Case–Shiller Home Price Indices are right in-line with home prices if  one takes out the real estate bubble or the rise and fall of real estate prices.

One might even say that prices are cheaper today than they might have been if we had never experienced the real estate bubble.

Even though there is historical data making me optimistic for Steamboat Springs real estate, there are a few factors that might supersede my optimism. The first of which is the shadow inventory in the shape of distressed homes. Many foreclosures have been trading at below market value and, in some cases, below replacement cost. This will continue to hold real estate values down in Steamboat Springs.

Secondly, and equally as important, are the continued issues with obtaining financing for the purchase of real estate and especially second homes and Steamboat Springs ski area condos. Yet these historically low interests rates make buying real estate very attractive today.

And lastly, employment and the overall economic conditions of our country.  Until we see a decline in unemployment and more stabilizing numbers in the economy, a rebound might be delayed.

Looking forward into 2012, I remain hopeful and believe that we will see several real estate markets improve in the coming year and leaving me more optimistic for an improvement in Steamboat Springs Real Estate Values.

Regards,

Charlie Dresen