Bubble, Boom or Bust – Steamboat Real Estate Market
Supply / Demand is the basic principle in economics. In real estate, it’s a delicate balance and equilibrium occurs when we have roughly six a month supply of homes. Today we have 1.4 months of supply which makes it a seller’s market.
Low inventory continues to be the headline story in Routt County – and nationwide. The real estate market is still moving at a dizzying pace and is showing no signs of slowing down. Anecdotally, we continue to hear that there are multiple offers on homes that go on the market and for above asking price. Prices remain high as well: the average residential sales price was $1,150,776. In March, homes in Routt were active in the MLS for a median of 14 days, 50 days fewer than last year and 1 day less than last month.
Key highlights include:
- Routt County had a total of 174 transactions in March, up from 99 last year – a 75% increase.
- There was $127,401,573 in total sales (up 105% from 2020).
- Of the 174 transactions, 83 were local buyers, 32 were front range and 59 were from out of state.
- There were 96 residential transactions in March with an average residential price of $1,150,776.
- The average Residential PPSF was $483.
- There were 10 new unit sales in March with an average price of $895,410 and a $505 PPSF
- There were a total of 278 loans in March 2021, with 43% of purchasers closing with financing at the time of sale, and with 57% closing with cash.
- There were 212 refinances.
- Up until last summer our sales had been pretty predictable and constant. But starting last august, sales really start to pick up. So much so that in the last 7 months, the amount of transactions has increased an average of 82% from the previous 6 years average. That’s almost a doubling of sales each month since September 2020.
And who’s buying?
Typically, we have about 52% locals – 48% out of town buyers.
Today, that number is changing with 47% locals – 53% out of town buyers. So yes, people are moving here from all over the country.
We’re also seeing more cash buyers.
Last month we saw Cash = 57% / Loan 43% (it’s typically around 50/50)
To recap, the market it hot. Buyers far outnumber sellers and aligning yourself with an honest, knowledgeable, aggressive agent is invaluable. This is not a market for the faint of heart. It’s double black diamond all the way and I’m ready to help
Click here to see all the statistics.ROUTT-MARCH-2021
Charlie Dresen 970-846-6435 Charlie@steamboatsmyhome.com