 The Paoli Group Website | The Paoli Group Blog | Members What does a transitional market look like? Here in Steamboat Springs, Colorado, we are getting very mixed signals regarding the state of our real estate market. On one side, the past few weekends saw the largest number of foreclosures in the paper. On the other side, we are seeing property closings at the Steamboat base area for record price per square foot numbers(click here for article #1) (click here for article #2). Prices above $1,100 per square foot! These are incredible numbers for Steamboat Springs. Personally we feel we are seeing a validation of Steamboat as a viable high end destination resort by the customers of the Vail, Aspen and Telluride type markets who recognize the long term value represented here. These buyers place a high value on the incredible family memories created in resort locations like Steamboat. They understand they are buying a very rare commodity (ski in/out property for the base area projects), and they also see the transition taking place at the base area. The developers of the Edgemont and One Steamboat Place are offering an experience never before available in Steamboat. While the above paragraph is a great sign for Steamboat’s long term future, it does not change the near term reality for many property owners. The current economy is creating a great deal of pain, which will result in foreclosures and short sales. This trend is most likely far from over in our local market, which is a scary thought. For property sellers, the next year may see even lower sale prices due to distressed sellers, creating further appraisal difficulties. Since most properties in foreclosure are still working their way through the system, this winter and spring may present a good window of opportunity to get deals done if you are a seller. Everyone loves a prosperous, fun environment and unfortunately, Steamboat was late to enter the real estate slide and will most likely be late to exit into recovery. A number of local economic fundamentals are aligning to make the next year a very difficult one for property owners. For example, a quick analysis of the daily classified section reveals very few job opportunities, but many properties for rent. This is a complete reversal from 2007. What do we do? When do I buy? Am I getting in at the bottom? These are all questions we hear on a regular basis. If only we had a crystal ball. Our answer is, “Find the best value that meets your needs in today’s market and aggressively make the best purchase you can”. Timing the bottom is virtually impossible and will only be clear when it is too late. What we know today is that prices have come down significantly from the peak, many sellers are in distress, inventory is high, INTEREST RATES ARE LOW and it’s a buyer’s market. It is not every day that these conditions line up. Check out our recent post on real estate values vs. interest rates from 1975 to 1996. Weighing historical data along with recent economic indicators (see our post on Randy Rowe’s round table discussion, and today may be a truly unique, long term opportunity. If you have any questions or wish to discuss any of the items mentioned above, email or call 970.819.1432 Summary for the month for November: • The Sales Volume of $89,994,700 surpassed the amount of $89,777,000 from NOVEMBER OF 2007! • A big contributor to the increased sales volume was a mineral deed for $26,679,600 (see below for more details). • The total volume sold for this month was 237.10% of the previous November 2008 • The total units sold for this month was 267.35% of the previous November 2008 • 131 units sold for the month surpassed the 125 units sold last month. • 62 of the units sold were from Fractional/Timeshares. • Only 169 loans were reported closed for the month of November. This includes refinances, seconds and any loan associated with a sales transaction. Over 5% of those loans were owner carry. Notable sales for the month of November:
• 11/24/2009 $26,679,600 Metes & Bounds: Sec 23-27, 34 & 35-5-87, Also: 19-5-86, Severed Mineral Rights with ½ Interest to Coal Mineral Estates - Seller is NRC, Purchaser Pardee Minerals for $26,679,600. • 11/10/2009 $2,400,000 Metes & Bounds: Sec 11-6-84 located at 33950 RCR #32 – 1,545 SF with 3 Brm 2 Bath YOC 1937 on 21.00 AC, shown in the Elk River/Strawberry Area. • 11/19/2009 $4,400,000 OSP Condo at Apres Ski Way Unit 801 In Steamboat Mountain Area • 11/23/2009 $4,200,000 OSP Condo at Apres Ski Way Unit 701 In Steamboat Mountain Area • 11/25/2009 $3,750,000 OSP Condo at Apres Ski Way Unit 407 In Steamboat Mountain Area • 11/25/2009 $2,850,000 OSP Condo at Apres Ski Way Unit 504 In Steamboat Mountain Area • Interval Sales = 62 Interval Periods sold for a median price of $123,000 with a total volume of $15,179,900. November 2009 Market Analysis for Routt County Chris Paoli Amy Brown
Broker Associate/Broker Assistant to Chris Paoli Colorado Group Realty, LLC Cell 970.846.2114 Fax 970.870.2803 amybrown@mybrokers.com
The Paoli Group Blog: www.steamboatcoloradorealestate.blogspot.com
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