HOW'S THE MARKET?
With warmer weather approaching, we will hopefully soon get a thaw in the persistently low inventory. Last month, there were only 51 residential offerings across Routt County; as of this writing, we’ve ticked up slightly to 69. Indeed, there appears to be a slow gradual increase of new listings throughout the county as the year progresses, with 13 new listings in December 2021; 16 new listings in January 2022; and 21 new listings in February 2022. That said, we’re still a long way off from what is considered a balanced supply of inventory of around six months. Currently, we only have a meager two months of supply.
Because of the low inventory, it doesn’t take very long for homes to get snapped up. The median days from list date to contract date is only 15 days; however, it has been hovering between 5-10 days for the last year so it is up a tad. The low inventory has also likely contributed to skyrocketing home prices: the average single-family home price in Steamboat Springs is now $2.05M, up 35% from this time last year when it was $1.5M. Condos and townhomes have also seen a considerable boost, averaging nearly $857K, up 30% in the last year.
From an interest rate perspective, reports from Freddie Mac suggest that March entered like a lamb and will be leaving like a lion. In the first two weeks of March, there was a decline in interest rates, but they’re starting to go back up. A 30-year fixed-rate mortgage averaged 3.76% at the beginning of March and is up to 3.85% as of this writing. Freddie Mac’s Chief Economist says, “Over the long-term we expect rates to continue to rise as inflation broadens and shortages increasingly impact many segments of the economy. Uncertainty about the war in Ukraine is also driving rate volatility.”
Although it is a seller’s market, that doesn’t mean people will purchase a home at any price. Top Realtors® consistently get higher prices for sellers. In fact, CGR clients received an average of 100% of their list price last year (probably just one reason we were voted #1 in Best of the Boat again). However, “highest offer” does not always mean “best offer”. Your broker will help you select the offer with the highest likelihood of closing. Finally, while it may be tempting to list your home “For Sale by Owner”, FSBO homes typically sell for 10-20% less than broker-assisted transactions.
Give us a call with any real estate questions, we are here for you.
2022 COMMERCIAL REAL ESTATE UPDATE
The commercial real estate market traditionally follows residential market trends, albeit at a slower trajectory. As 2022 gets well underway, the buyer demand for commercial real estate far outweighs supply, just as it did in 2020 and 2021 for residential.
Realtors® are reporting a surge in calls from investors and potential business owners seeking commercial investment opportunities for downtown Steamboat Springs and the outlying area. Work/live apartments and warehouses are currently a golden commodity, but supply is almost non-existent.
At the time of writing, there are only 27 commercial properties for sale and 18 leases available.
Average Price-Per-Square Foot on Annual Commercial Leases for 2022:
Office rents are frequently based on a gross lease and retail rents are NNN (triple net) leases, whereby the tenant will pay for taxes, common area expenses, and any interior improvements to the space. Warehouses vary, but the majority are NNN leases.
In a recent study by JP Morgan, they identified a range of trends and commercial opportunities for 2022, many of which can already be seen in Steamboat:
Hybrid Work Model:
The future of offices is still largely unknown, but Realtors® in Steamboat have seen a demand for workspace outside the home. Many industries are using a hybrid work option as a recruitment and retention tool.
Upgraded Rental Units:
There is a need for larger living quarters as the hybrid work model gains popularity. Renters are home more and want more space. Some buyers and renters have moved from a one-bedroom to a two-bedroom apartment and upwards.
Effects of E-commerce:
Brick-and-mortar retail took a hit in recent years, but JP Morgan suggests the impact may have been overblown. They found that people still want to eat at restaurants, get haircuts and purchase other in-person goods and services.
Addressing the “Missing Middle”:
Workforce housing for middle-class households continues to be in short supply. Key workers from sectors such as emergency services and education are struggling to find affordable living solutions. Real estate will need to draw on public-private partnerships to build more workforce housing, such as the partnership between Yampa Valley Housing Authority, Gorman & Company and Deneuve Construction to build Sunlight Crossing on the west side of Steamboat, and the proposed collaboration between the City of Steamboat and UC Health Yampa Valley Hospital to build 22 units earmarked for staff.
SPOTLIGHT ON THE ART
Steamboat Symphony Orchestra
As the Steamboat Symphony Orchestra embarks on their 30th anniversary season, they have a new leader at the helm. This month, Jennifer Grathwohl took the reigns as the non-profit’s Executive Director. She joins SSO after a stint at Steamboat Creates and has a wealth of marketing and planning experience in both the public and private sectors. “I want to ensure we have strong roots, and our current programming stays as diverse and exciting as it is, but we can expand to meet people where they are at,” Grathwohl says. “I believe we can increase our exposure locally, regionally and nationally.”
Piknik Theater
Last month, the school board for the Steamboat Springs School District unanimously gave their approval to Piknik Theater to pursue an outdoor performing arts venue at the Strawberry Park campus. The 200-seat state-of-the-art outdoor performance space will become a home for student performances and enable a plethora of possibilities for all regional arts groups and community activities. “All performing arts programming has suffered during the COVID era. However, outdoor venues are shown to be less of a risk, and this amphitheater will be the first in the Steamboat Springs area,” says Stuart Handloff, Executive Director, Piknik Theater. “This collaboration with the school district is the best fit and best dollar for dollar investment for the development of a performing arts venue.”
The cost of the facility is projected at $500K and a fundraising campaign began this month. For additional information: pikniktheatre@gmail.com or 970-355-9403.
You can also check out the website here:
NAMASTE STEAMBOAT
According to the National Institutes of Health, yoga is believed to reduce certain types of pain; improve quality of life; reduce stress; lower heart rate and blood pressure; and help relieve anxiety, depression, and insomnia. It is also known to improve flexibility and balance, so it comes as no surprise that yoga is a favorite past time for many Routt County locals.
Seasoned yogis have their favorite places to exercise in Steamboat, it’s just a case of finding the right fit.
The Yoga Center of Steamboat
On the banks of the Yampa River describe themselves as “a Sangha (community) created to provide a sacred space for education and practices that promote a life in balance.” Since the start of 2022, the studio offers all classes on a donation basis.
Steamboat Fit
Combines yoga, Pilates and conditioning movements in their ever-popular Steamboat Fit Barre. A gentle yoga flow class is available once per week. $20 drop-in, $99 monthly membership or $35 monthly virtual membership.
Rakta Hot Yoga
Is as hot as it gets, and those who want to try more diverse yoga practices swear by this studio between downtown and the mountain. Beyond meditation and relaxation forms, Rakta offers classes such as Wall Yoga using straps, ropes and swings or Buti Flow with tribal dance and primal movements to complement yoga moves. $25 drop-in, $135 monthly unlimited or punch cards starting at $95 for five classes.
Old Town Hot Springs
Brings an added opportunity for relaxation with the option of a soak in the naturally heated springs after a gentle yoga session. $27drop-in, $108 for a five-pack, or memberships from a four-month to a year-round option.
Out Here Yoga
Predominantly practices the challenging, heated, power vinyasa style of yoga through weekly classes and multi-week workshops. Their elevated setting with views to Steamboat Resort affords this studio’s emphasis on connection to the world around us. $40 monthly virtual membership, $90 for an in-studio five-pack or $105 monthly membership.
Steamboat Pilates and Fitness
Incorporates yoga into Pilates Flow and offers a weekly Yoga Flow class. $20 drop-in, ($10 first-time rate for locals), or $150 for a 10-pack.
AFFORDABLE HOUSING ON THE HORIZON
Affordable Housing continues to be a struggle in Steamboat Springs, but a mix of public and private collaborations are inching toward alleviating the strain.
The Yampa Valley Housing Authority is accepting requests for Sunlight Crossing, a 90-unit apartment complex on the west side of Steamboat Springs. The newly constructed project is scheduled for completion in mid-July 2022. It will offer a mix of studios, one-bedroom, two-bedroom and three-bedroom configurations.
Pricing is aimed at moderate income earners, defined by household income which is 80-120% of the area median income. Currently that is:
Figures from a study in 2019 showed 38% of housing units occupied in Steamboat Springs are by renters, and 54% of those renters are considered "Renters Overburdened" (households who pay more than 30% of household income).
In a bid to overcome staffing shortages for lower-paid positions, the City of Steamboat is looking to build dormitory-style housing on Thirteenth Street. The goal is to offer seasonal housing opportunities for transit drivers and parks and recreation employees. Rent increases and limited availability at the city’s current agreement with Flour Mill Apartments and Ski Town Apartments is restrictive and not a long-term solution.
A collaboration between the City and UC Health Yampa Valley Medical Center aims to bring 22 units for city and hospital staff. The joint venture will provide 12 units designated for the hospital and 10 units for the city in a multi-family building at Barn Village by Steamboat Resort. The project is estimated to cost the city around $4.5M. It is hoped some of the funding will be sourced through a grant from the Colorado Department of Local Affairs, which awards funds between $1M and $3M. If the city is successful, they hope to break ground in July.
Get Involved in Housing Solutions:
Brown Ranch, the 536-acre parcel donated to the Yampa Valley Housing Authority by an anonymous donor, continues to make strides through the work of a 20-person-strong steering committee. The community can participate in the planning process by attending focus group meetings being held over the coming months. Focus areas are broken into sections including: Housing and Residential Demand, Natural and Built Sustainability, Urban Design, Infrastructure, and Stewardship and Project Economics. To participate, email brownranch@gmail.com.