HOW'S THE MARKET?
The heat is on! Not only with the gorgeous weather in the Yampa Valley, but also with our real estate market. This time last month, there were only 69 offerings county-wide; now we’re up to 117. We’ve jumped from less than one month of available inventory to 1.3 months of inventory.
Although it may not seem like much, it’s a dramatic improvement for buyers who’ve been struggling with limited inventory for the past two years. It's still a competitive market, even if there’s more to choose from, with the median days on market sitting at seven.
With rising interest rates (conventional 30-year fixed mortgage rates are now 6.3%) and an increase in available homes to choose from, economic theory would suggest that the rapid home price appreciation of the past two years will begin to decelerate. Although there’s reason for optimism that the market may cool, buyers shouldn’t start jumping for joy just yet; the average price of a single-family home in Steamboat Springs is now $2M.
The Steamboat City Council recently approved new regulations limiting short-term rentals. Although there is still uncertainty in terms of its application, some owners who were able to short-term rent are now prohibited from doing so, as their homes are in the “red” zone. Others, particularly those in the commercial areas of downtown and next to the ski resort, may only short-term rent if they are in the “green” zone. And still others are in the “yellow” zone and must obtain one of a capped number of permits to short-term rent. To add another curveball to this confusion, it sounds like those who were short-term renting in the yellow or red zones prior to the enactment of the overlay zones may continue to do so.
With the market and local laws moving as quickly as they are, our experienced agents are here to help answer any questions that you may have.
COMMERCIAL REAL ESTATE DEMAND OUTWEIGHS SUPPLY, DESPITE ECONOMIC PROJECTIONS
Last month, over 100 business leaders from across Northwest Colorado gathered at the Colorado Mountain College Steamboat Springs campus for the annual Economic Summit. Worker shortages was a common issue for businesses regardless of industry. Additionally, sky-rocketing gas prices and a 40-year-high in inflation threaten tourism-based businesses, the lifeblood of the Steamboat Springs economy.
Despite the findings, the City of Steamboat Springs sales tax revenue is up 31% from last year, through April. This equates to over $3.3M more in revenue for the first quarter of 2022.
“It’s hard to explain,” said Sue Davies, Budget and Tax Manager for the City. “The categories may indicate that a lot of it is in the Mountain area and in lodging, so probably just some pent-up demand for getting out and about and traveling.”
Steamboat Springs is at the forefront of investors’ minds, as commercial real estate professionals report a surge in interest for potential ventures. National fashion brand retailer, Faherty, recently opened their first Colorado store on Lincoln Ave. in Steamboat, saying that the vacation destination fits well with their consumer.
Competition for downtown retail space has spiked with several businesses expanding, or new enterprises moving into the area. Athletic wear giant, Lululemon, relocated from a pop-up store to the former Bucking Rainbow space with a longer-term lease. CuCu Leather moved into Lulu’s old shop on 7th St., jumping at the opportunity to grab a larger space, while Bucking Rainbow and Steamboat Flyfisher will join forces in a soon-to-be-opened store on Yampa St. and 7th.
Demand for commercial real estate continues to outweigh supply. RiverView Steamboat, a 4.75-acre mixed use development in downtown, is almost sold out, with the last parcels pending. Numerous large deals for vacant land on the mountain by Steamboat Resort have either closed or are under contract, leaving little buildable opportunities at this time.
The need for industrial units remains strong, especially for the construction industry who seek storage and office space. Later this summer, Auto Hangers will launch a "bespoke car storage" service at Yampa Valley Regional Airport.
Part of the demand lies with the multi-million, multi-year commitment to invest in Steamboat Resort by Alterra. The group began the second phase of redevelopment in their Full Steam Ahead campaign once the resort closed in April.
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WILD MUSTANGS UNDERGO A MAKEOVER
Kristina Mitchell, a student at Steamboat Springs High School, has a task on her hands this summer. She has 120 days to gentle the wild yearling mustang she was assigned to this spring just in time for the annual Meeker Mustang Makeover.
Mitchell is one of twelve youth trainers taking part in the fourth edition of the event that celebrates wild horses. Another ten trainers will work with horses in the three-years-plus category.
Overpopulation of wild horses on lands in the West, together with a drier climate, continues to put the ecosystem at great risk. Sparked by fear for the future of these areas and the horses, a group of ranchers, trainers, and veterinarians sought a viable solution.
The event has morphed in size and categories since the inaugural event in 2019 when just six trainers competed. “It’s a great opportunity for young trainers to show the public what they can do, while learning life skills such as patience, persistence, and courage. The event is not for the faint hearted,” McNab continues.
This year’s auction takes place on August 27, 2022, at the Meeker Fairgrounds. The 2022 horses hail from BLM lands in Wyoming and Utah. Five of this year’s Mustangs will spend their summer in Moffat and Routt Counties, being readied for a chance of a brighter future.
LIFE IN NORTH ROUTT OFFERS A GENTLER PLACE
The line off the porch at the iconic Clark Store in North Routt is an indicator that summer is truly here. Visitors and locals are patient knowing that the ice cream they order is worth the wait.
The Clark Store, located 17 miles from downtown Steamboat Springs, has always enjoyed a special reputation amongst locals. It serves as a well-stocked convenience store, post office, eatery, weekend pizza joint, and makers of the best ice cream for miles.
“It’s the hub of the community up here,” said Lisa Ruff, a 40-year resident of the Yampa Valley, who recently bought a home in North Routt with her husband. The retired teachers opted to move north after selling their family home in Steamboat. “Timing wasn’t great, the pandemic hit while we were renting, but we got lucky before the housing rush,” she said. The couple feel fortunate to have found a place without having to leave Routt County. “It’s definitely a slower pace of life up here and more like the Colorado I was used to as a kid, which is a great thing.”
The Ruffs, like so many of their neighbors, chose North Routt for the lifestyle. In the winter, miles of snowmobiling terrain, cross country and snowshoe trails, backcountry skiing and ice-fishing opportunities abound. After the snow melts, locals take to the river and lakes to fish, paddleboard, boat, and the trails to hike, bike, and horse ride.
Sitting in the shadows of 10,774-foot high Hahns Peak summit, North Routt is an eclectic community bustling with artists, business owners, families, retirees, and those who relish the commute from town to a quieter pace of life. Libby Creamer, an elementary school librarian, said she pinches herself on the drive home after work. Creamer and husband Greg, a fishing guide, moved into their home off Seedhouse Road ten years ago. Built as a dream home by her parents, she’d spent all her summers on a cabin nearby before they opted to raise their own family in the house.
When a wildfire threatened to destroy their property last summer, the community came out in force to offer help and take their menagerie of animals, including alpacas and horses, into their care.
“If you go into the ditch in North Routt, you can be sure someone will be there to pull you out,” said Lisa Ruff. “It’s just that kind of place, a tight-knit community where someone will always have your back.”
CATCH OF THE DAY
The Yampa River is often described as the beating heart of Steamboat Springs. As one of Colorado’s last remaining, mostly free-flowing rivers, it is a resource that the community is dedicated to preserving.
In 2019, the Yampa River Fund was created by a forward-thinking group of farmers, non-profits, municipalities, and recreation-based businesses to address worsening drought, increasing populations, and developments. A $4M endowment was created to fund environmental restoration projects, agricultural infrastructure enhancements, and releases from nearby reservoirs. The overarching goal is to ensure the river can support farmers, communities, recreationists and wildlife for the future.
Recreation for river users has seen a surge in recent years with demand from anglers, kayakers, tubers, paddleboarders and rafters. A handful of local outfitters offer guided trips, lessons, and equipment rentals, which doubles as an opportunity to educate river users on etiquette to protect the waterways.
Among the many uses, fishing is one of the most popular sports for locals and visitors to Steamboat Springs. When the air temperatures rise and the snowmelt fuels the flow, anglers can be seen dotted throughout the Yampa Valley.
With seven miles of public waters to fish, the stretch from Chuck Lewis State Wildlife Area to the downtown holes, remains the most popular and accessible. Fly fishing for rainbow and brown trout, often over 20”, draws fisherman from across the country. Increasing numbers of large pike attract another type of dedicated angler.
Seasonal opportunities upstream are also available at Sarvis Creek State Wildlife Area and the tailwaters of Stagecoach Reservoir (which recently closed to fishing due to low water levels). Eight miles out of town, fishing is offered on the Elk River at Christina State Wildlife Area. Further afield, the Flat Tops Wilderness boasts the Bear River and a host of alpine lakes some of which have large concentrations of native Colorado River cutthroats and some which are home to arctic grayling. Stagecoach Reservoir, Steamboat Lake and Pearl Lake all boast excellent fishing with backdrops to distract even the most focused angler.
For daily hatch reports, conditions, guiding services and rentals, check out
www.steamboatflyfisher.com | www.straightlinesports.com | www.buckingrainbow.com
Keep up to date with all thing’s river related at www.friendsoftheyampa.com