Urban Flight is REAL and Effecting Steamboat Real Estate
A couple weeks I ago showed a home to a family from Brooklyn, New York. They are relocating to Steamboat Springs, Colorado – trading 2.5 million people for 13,212 (population of Brooklyn / Steamboat)
Over the last few month, one sentiment that we’ve all been talking about in Steamboat is that it’s only a matter of time before we start to see people moving to small towns like Steamboat Springs. Whether to seek out a lifestyle away from the hustles and bustles of a big city, or finally realized that location neutral employment is real and is much more acceptable in today’s business world.
In the last 30 days, we’ve seen 74 properties go “under contract” in Steamboat Springs See those Steamboat real estate pending properties here.
That’s a sharp contract from just a month ago where that number was significantly lower. Here’s a graph showing the impact that COVID-19 had on the real estate market in Colorado regarding actual showings of properties. From March 15 to about April 15th, showings of real estate homes dropped significantly. But around April 24, Colorado has seen a huge rebound in real estate showings and thus, a dramatic increase of buyers actually looking and creating an increase in pending real estate sales.
Real estate sales in Steamboat Springs is down 18% year-to-date. And down sharply for the months of April (-53%) and May (-49%) but given current “pending sales” are up sharply, the overall effect of COVID-19 just might be minimized because of urban flight. I can’t say such urban flight is contributing to this dramatic increase in real estate sales in Steamboat Springs, but I can say I’ve been talking with multiple people who live in metropolitan areas that are now thinking about moving to Steamboat Springs, Colorado.
If people were on the fence contemplating a change in where they live, the last few months have really given people the opportunity to evaluate their situations. As restriction ease and restaurants and short-term lodging begins to open up here in Steamboat Springs, we’re seeing more people in town and real estate showings and pending home sales are up significantly from just one month ago.
Time will tell with COVID-19 and the long-term effect it will have the local economy in Steamboat Springs. But as of the middle part of June, real estate in Steamboat is hot. Lower inventory and increasing demand has prices on the move up again.
Here’s the current absorption rate from Steamboat Springs. In short, it’s a seller’s market for most places under $2M and a buyer’s market for properties over 2 million. Like I predicted a few months ago, the condo and second home market is a little slow given the lodging ban and shortened ski season.
Want to learn more? Check out the links below for more insight into the Steamboat Real Estate Market.
Charlie Dresen 970-846-6435 or Charlie@SteamboatsMyHome.com