September 2011

Summer wrap up for the Steamboat Springs real estate market
Dear Friends,

   For those of us who live here year round, we truly appreciate how spectacular the weather was in August and fortunately September is just as good. Each weekend brought a new group of visitors to Steamboat for a plethora of very fun events. One of the highlights was the USA Pro Cycling Challenge . This was a new professional stage race that featured the world's top riders.

   Steamboat is, without a doubt, an amazing place to spend the summer. Yampa Street is one of the hot spots for summer fun. This summer Yampa Street added another delicious new restaurant, Carl's Tavern. Also, it is great to see the success of newer restaurants like Sweetwater Grille, Sweet Pea Café and Ciao Gelato.

   As another real estate season ends, it is wonderful to see many people making Steamboat their full time residence. Steamboat is not only a great world class resort it is a wonderful place to call home. Also, it is an awesome town to raise a family.

   With increased location neutral opportunities for employees and business owners, our opinion is the year round offerings will be Steamboat's unique advantage over time. In reviewing the year to date real estate numbers, the decrease in activity from 2010 feels like an opportunity for anyone looking to buy. As we scan through the market, looking for deals and the next shoe to drop, we are encouraged.

Here is a short list of some developments which occurred that we feel are noteworthy:

One Steamboat Place has restructured its financial situation for the future.
Boulder Ridge has also restructured its financial situation They also sold the spec home started in 2010.
Graystone Subdivision was purchased by a long term player in the Steamboat market, again avoiding a bank liquidation.
All but a small few developments (duplex and single family homes) have either gone through foreclosure or sold.

A few things we are monitoring to see how they play out are:

Trailhead Lodge Lender has put up for sale the note for the remaining condos. The face value is approximately $40 million dollar +/-. The ultimate sale of this note and foreclosure will end in the condos finally being marketed for market value, which we feel is somewhere between $400/sqft and $550/sqft.
Barn Village lender has attempted to sell their note. At some point this project will change structure to one which allows for the sale of lots at the correct market price. Where that is, we are not 100% sure.
Final sales at the Victorian. With the remaining inventory of condos knocking on the door of foreclosure a few recent deals have occurred, which may keep the foreclosure from occurring.

Overall, we feel the activity level this summer was heading in a very good direction, with increased buyer activity. Unfortunately the macro picture turned uncertain, lead by the government's debt ceiling debate and the European financial issues. All of which occurred at the height of our selling season. Looking ahead, we are still seeing strong activity on our listings and have good conversations occurring with buyers.

If you would like to know more about what is happening with the market and The Paoli Group on a more regular basis we would love for you to "Like" us on our Facebook page!

Best regards,

Chris and Amy

July followed the slightly downward trend of this summer, unfortunately, with a total of 79 transactions for $31.6M which is the second lowest number of transactions this year.

Bank sales were slightly down with 14. The bank sales information is also attached.

There was a large sale in the Oak Creek/Yampa/Phippsburg area for $7M detailed below that throws off that area’s average transaction price for both July and the YTD transaction section. Medians & Residential prices are not affected. This was a large AG land sale. Just wanted you to be aware...