Mortgage Rates   –    the S L O W L Y Changing Market   –   Interesting April Stats

The Steamboat Springs Real Estate Market Report

The Steamboat Springs real estate market is still pretty strong but we’re seeing some signs of change. Much of these changes has to do with low inventory. But high interest rates are not helping.

Most economists were expecting the Fed to decrease the Fed Rate throughout the year, thereby decreasing mortgage rates. Which would have fueled the real estate market in Steamboat Springs. But, that hasn’t happened . . . yet.  In fact, mortgage rates have been trending on an upward trajectory so far this year. These higher mortgage rates continue to influence the Steamboat Springs real estate market keeping many buyers and sellers on the sidelines.

As of May, 2024 according to Freddie Mac, the interest rate for a 30 year fixed rate mortgage is about 7.1%. 

So, why aren’t rates dropping as expected?  Well, the jobs report and the economy are the main drivers.  Unemployment continues to decrease and the economy continues to grow which is the main reason the FEDs have not lowered rates. 

However, the U.S. economy only added 175,000 jobs in April – the slowest jobs gain in six months and below market expectations, in addition the unemployment rate ticked up from 3.8 to 3.9 percent. So, are starting to see the beginning of a shift in the current trends?

Economists are now predicting rates to drop at the end of 2024. And Mortgage giant Fannie Mae likewise revised its outlook, now expecting 30-year mortgage rates to be at 6.4% by the end of 2024, compared to an earlier forecast of 5.8%

The S L O W L Y changing market 

With higher mortgage rates, some buyers are delaying a purchase and this in one reason inventory is on the rise. In April 2023 there were 562,000 active listings nationally. Today there are 734,000 active listings.

We’re seeing similar trends here in Routt county. After 9 years of decreasing active listings, we’re seeing active listings increase year over year from 74 active listings in April 2023 to 126 active listings in April 2024. To give you a reference, we had 550 active listing in April 2017. 

While a 70 percent increase in active listings seems like a lot, with only 141 available today, it’s  still very low compared to years past.  In other words, we still have an inventory problem more than an interest rate problem. And that can be seen further with current pending and recent sales. 

While much lower than the pandemic years, both pending sales and recent sold properties are trending moderately up.

Another way to demonstrate this is “months supply of inventory” or absorption rate. As you see for Routt county, we have roughly 2.9 months of available inventory. While that’s double from 2022, it’s still really low given a normal balance market would have about 6 months of available inventory. So, even though inventory is increasing, it’s still a seller’s market meaning price continue to go up. 

And we can see that with the median price of homes in Routt country rising from $910,000 in April of 2023 to just over $1M today.

Interesting April Stats 

We took a look at sales in the month of April for 2024, 2023 and 2022.  Looking back over this time, there were 64 sale in 2024, 40 sales in ’23, and 71 sales in ’22.

Then we looked to see how many of these sales closed at, above, or below asking price, and the results are telling. 

In April 2024, of the 64 residential properties that sold, 28% sold for over asking price, 19% sold at ask price, 53% sold for below asking price.

Compared to April 2023, of the 40 properties that sold then, 27.5% sold above asking price, 17.5% sold at asking price, and 55% sold for below ask.

 2022 was a different picture.  Of the 71 transactions in the month of April, 55% sold above asking price, 22% sold at asking price, and only 23% were below asking price.

So, to summarize, were still seeing some multiple offers in this market but with 53% of homes selling for below asking price, this is proof the market is changing, albeit slow.

What does all this mean to you?

If you’re a buyer, with inventory slowly increasing, there’s more homes to look at and this also gives a buyer a little more negotiating power.

As a seller, pricing and presentation is paramount. With less multiple offers these days, and the majority of homes selling for below asking price, it really important to have your property in “show ready” condition and have it priced right. 

I’m Charlie Dresen and my contact information is below. And if you or someone you know might need some assistance with real estate in Routt county, I’d be honored to assist you.


Charlie Dresen