HOW'S THE MARKET?
Happiest of holidays to all of our friends near and far! Old Man Winter got an early start to the season, dumping several good snowstorms in the Yampa Valley early in the month. With any luck, many more are on the way.
As of December 14, 2023, Routt County has 138 active residential listings. That’s down slightly from 146 this time last month, and down about 38% from this time last year (202). The number of currently-pending listings (61) is slightly down from this time last month (65), and quite a bit up compared to this time last year (34). The closed listings county-wide in November 2023 (48) are down a bit from the month prior, October (55), and close-to-even with November of 2022 (46).
According to Freddie Mac, the national average for a 30-year fixed rate mortgage as of December 14, 2023, dropped below 7% for the first time since August, clocking in at about 6.95%. On Wednesday, Dec 13, 2023, the Federal Reserve met and announced that it would not be raising interest rates.
Many economists seemed to believe that this announcement was an indication that the Fed was halting its twenty-one month crusade of interest rate hikes against rising inflation. That crusade saw 11 rate hikes since March 2022. As we’ve discussed in other newsletters, the rate hikes in question relate to the federal funds rate, which is not the rate that consumers pay interest. Still, the Fed’s rate hikes affect borrowing and savings rates consumers experience on a daily basis.
As an example, average credit card rates went from 16% in March 2022 to about 21% today; mortgage rates went from an average of 3.2% in March 2022 to 8% today; auto loan rates went from an average of 4% in March 2022 to 7.72% today; and federal student loans rose from an average of 3.73% in the 2021-22 academic year to 5.5% this academic year. The hope, then, is that the Fed starts cutting rates in 2024 and, as a result, other interest rates start to fall as well.
A SILVER LINING TO HIGHER RATES
If you were among the fortunate who snagged a home loan in the days of 3 percent mortgage rates, then you might have given little thought to itemizing your mortgage interest and property taxes on your tax returns. The standard household deduction, which increased significantly in 2018, probably has you covered.
However, for those of you looking at interest rates in the 7 percent territory, well…get out your pencils. Itemizing those deductions can make a significant difference in your bottom line and alleviate some of the impact of higher rates on your housing costs.
Here’s an example:
For a couple holding a $600,000 mortgage at 3.25%, their combined mortgage interest and property tax add up to about $24,000. The standard deduction for a married couple filing jointly in 2023 is $27,700. Probably not worth the effort to itemize.
For a couple with the same loan balance at a 7% rate, their mortgage interest and property taxes will total about $47,000 or about $20,000 over the standard deduction. By itemizing deductions, they would stand to reap about $5,000 annually. This savings would create the effect of saving over $400 per month off their mortgage bill. *
Big picture, if you are in the market for a new home, but feeling nervous about the current rates, be sure to factor in these deductions before you turn your back on the home of your dreams.
For more information please contact Josh Kagan at Group Mortgage. Call 970-879-0996 or visit:
https://www.houseloan.com/joshkagan/
*This represents an estimate for the impact of the deduction, which changes based on your tax bracket. Consult your tax professional to find out the potential tax savings for your own scenario.
TRAINER TIPS TO GET SKI AND SNOWBOARD READY
As a new ski season gets underway in Steamboat Springs, maximizing time in prized powder is at the forefront of skier’s and snowboarder’s minds. The Group sat down with Jordan Bloom, a local personal trainer, movement educator and therapist specializing in injury prevention and recovery. Bloom focuses on movement optimization and longevity – vital components of extending the pursuit of sporting passions.
The Group:
What can you do to condition your body for ski season?
Jordan Bloom:
Ski conditioning is not just about doing exercises; it’s about building resilience. The muscular system in our body takes at least three months to adapt, but most people don’t give themselves that much time, so you need to do the best you can. For those who are active year-round with a diverse array of activities and sports, they are already at an advantage.
Work on exercises that involve knee bends, hip hinging, ankle rotation, core, and spinal stability. In order to acclimatize to ski or snowboard boots before ski season, try to wear them for short periods of time in the house, along with doing toe stretches and rolling a ball under your feet. If you are coming from lower elevations keep well hydrated upon arrival in the mountains.
The Group:
Is there anything you can do to reduce muscle fatigue?
Jordan Bloom:
Concentrate on building resiliency by limiting your first days or weeks on the mountain to a few hours and easier slopes. Take the time to warm up for about 20 minutes before you hit the slopes. Most importantly focus on recovery post exercise by stretching using a foam roller or ball to stretch out muscles. Take a bath with Epsom salts or soak in the hot tub if you have access to one. Keep hydrated by adding electrolytes to your water, as you lose a lot of fluid through sweating. Avoid alcohol and get a good night’s sleep. Getting a massage, doing yoga or a stretching class will also add huge benefits.
The Group:
What are some of the most common injuries you can avoid?
Jordan Bloom:
Depending on where you are starting from, overuse by doing too much too quickly can be a problem. Hips, knees, and ankles typically fall prey the most. The sliding and downward gravitational forces of skiing and snowboarding increases the number of forces you are asking your body to do. Conditioning is the best way to optimize your movement patterns to make you more efficient, effective and reduce the risk of problems or injuries.
JORDAN BLOOM
To reach Jordan Bloom go to www.jordanbloom.com
YAMPA VALLEY COMMUNITY FOUNDATION OPENS THE DOORS TO THEIR NEW OFFICE
After decades of office moves, desk hopping and scrambling to find adequate meeting spaces, the Yampa Valley Community Foundation finally has a place to call their own. A state-of-the art building now sits on the corner of Fourth and Oak Streets, thanks to the generosity of many donors.
The organization began as The Yampa Valley Foundation in 1979 to financially save what is now Colorado Mountain College Alpine Campus. Over subsequent years they continued to benefit the community by working with a number of charitable funds and activities. In 1996, they reorganized, renamed to the Yampa Valley Community Foundation, and moved their focus to raising funds “to grant money in the Yampa Valley to enhance education, arts, health and human services, recreation and the environment.”
Fast forward almost 30 years and the community foundation stewards about 200 funds including donor advised funds, scholarship funds, endowment funds, nonprofit agency funds and field of interest funds.
As the organization grew, the need for adequate space to enhance efficiency in their mission became more critical. When past board member Barbara Winternitz and husband Boyd Bass offered to donate the land, serious discussions took place with donors and community stakeholders about pursuing the idea of building.
“Our work is mostly meeting based with elected leaders, donors and non-profits,” said chief executive Tim Wohlgenant. “We wanted a comfortable place for people to come and talk about their passions and philanthropy.”
A $3 million fundraising campaign ensued to cover the $2.7 million building cost, with a further $400,000 generated for a building endowment fund. The organization engaged Mountain Architecture Design Group to get the ball rolling.
“Architecturally, we wanted to embrace the transition from commercial-style architecture along Lincoln Avenue to the Old Town residential architecture of Oak Street and into the neighborhood beyond,” said Chancie Keenan, Principal and Architect. “We wanted to incorporate a strong porch element, and simple roof forms historically found along Oak Street - without creating a false sense of period. I believe we accomplished this balance with the simple form and a few edgy details; it feels current.”
Local developer and philanthropist Paul Brinkman served as the client liaison for the project at no cost to the organization, a service he has done for other building projects in the community. “I left my day-to-day job in 2017 and this allows me to give back to non-profits,” he says. Brinkman could see the importance for the foundation of having a visible designated base, while providing a pleasing work environment for the team.
Sustainability was paramount for the design and choice of materials. The design team made the most of a 40% tax credit for installing a geothermal heating system. Picking Contracting Inc. ensured the all-electric powered property used high value insulation and triple glazing for the extensive number of windows.
The two-story building, which took one year to build, is a mix of office space, staff kitchen and conference room on the ground level. Commissioned glass work by local artist Jennifer Baker fills the transition area at the base of the stairway to the upper floor. A large meeting room, kitchen and small offices are all available for use by the community at no cost.
Since opening the front doors in October 2023, the property is already seeing the vision for it come to life.
WARM WISHES FOR JOYOUS HOLIDAYS AND A HAPPY NEW YEAR!
During this holiday season, we here at The Group would like to extend our warm holiday wishes to all of you, our clients and friends. We are grateful for the opportunity to be your trusted advisors, and are here for any questions you may have. Happy Holidays and a Happy New Year from all of us at The Group!
HOLIDAY GIFT GIVING STEAMBOAT STYLE
Santa Claus need look no further than Steamboat Springs for inspiration on a whole host of locally made products begging to be bought in time for Christmas. Routt County is a hotbed of talent, bursting with local artisans and creators of fine things. The Group gathered up some favorite finds in all price ranges to put in this year’s letter to old Saint Nick.
Choose your scent with a Ranch Organics Barn Basket Gift Set for $125, filled with a body wash and lotion set, ranch rub, barn balm, bubble bath and goat milk soap.
Sleeping bags for the family from Big Agnes which come with their own built-in mat. No more rolling onto the tent floor in the dead of night. Prices start at $99.95.
Hand crafted Northland Carving Skis to cruise through powder days. Price $1,995.
Locally designed t-shirts, sweaters, and hats by West Lyfe, where the emphasis of every design message is keeping the West wild. Prices vary.
Blüml’s Artisan Chocolate handmade by Swiss-born Daniela at the Homesteader. Her melt-in-the-mouth treats grabbed the attention of Jay Leno so much so, he served them in his green room for years. Prices vary.
A sand cast brass or silver bowl by sculptor David Marshall available through Stēl House + Home in Wildhorse Plaza. Perfect for the holiday table. Pricing from $400.
For the gift that keeps on giving, a four-month membership to the Old Town Hot Springs. Youth $197 (age 3-17 years), Adult (18 +) $295, Senior (65+) $261.
Make a statement on your wall with a limited-edition image of the West in a hand built custom frame by longtime local Jace Romick. Prices vary.
A bag of Stampede Blend Coffee roasted locally by Big Iron to pack a punch on a powder morning. $9.86 a bag.
The Burrito Wader Bag by Fishpond will make traveling with even the soggiest gear a walk in the park. $59.95
Top your head with a custom 100% Rabbit Felt Hat by Steamboat Hatters, from $750.