HOW'S THE MARKET
October is a month of opportunity and change in Steamboat. While many folks leave for short trips to the desert and tropical lands, many others prepare for the changing season. October is the time to start your winter preparations, so go get some new windshield wipers, stake your driveway, and pull out those dusty skis from storage. This is also a great month to sneak in one more hike, and the mountain biking is still outstanding.
As of September 18, 2024, Routt County has 270 active residential listings, whereas there were 277 in the month of August. Pending listings continue to trend upwards. Mid September has (124), a significant increase from August (71), and July (64). It’s also an increase over August of last year (65). As was also the case last month, this continues to indicate increasing activity, which is not unusual once the summer comes to a close and vacation travel wanes. Closed residential listings county-wide in August, 2024 (64) increased from July (47), but were down from the prior year of August, 2023 (75).
According to Freddie Mac, the national average for a 30-year fixed rate mortgage as of September 12, 2024 was 6.2%, a .24% decrease from last month. Sam Khater, Freddie Mac’s Chief Economist notes, “Mortgage rates have fallen more than half a percent over the last six weeks and are at their lowest level since February 2023.” With the half point rate cut that happened in mid September, mortgage rates are expected to continue to drop further. Keep in mind that mortgage rates are only loosely linked to the Fed Rate and there is no direct correlation. Much of the current mortgage rate environment has already considered the expected Fed Rate drop and there is always a little turbulence directly after a significant change in policy.
Last month we noted the practice changes from the National Association of Realtors, or NAR, settlement went into effect Aug 17, 2024. This was the most anticipated and biggest change the real estate industry has seen in years. Nobody was sure how it would go. Well, the sky didn’t fall and we’re all still here. While there have been a few bumps in the road, Colorado had already addressed many of these issues prior to the settlement, so luckily there have not been many disruptions and transactions continue to proceed smoothly. If you still have questions about these practice changes, call your broker at The Group and he or she can explain them to you further.
At The Group, we are thankful to be your real estate trusted advisors. As you gear up for winter, please reach out with any questions regarding real estate.
WHEN IS THE RIGHT TIME TO REFINANCE?
Mortgage Rates have thankfully begun to move lower off their 20-year highs. For homeowners who have purchased a new home in the last two years, anticipation about getting into a lower house payment is growing. With no crystal ball to tell us how low rates will go and when they will get there, trying to determine when the optimal time is to refinance can be tricky. Traditional rules of thumb, such as only refinance if a full percent lower, may not hold true when considering variables such as loan amount and personal finance goals.
Answering a few key questions can help one determine a rate that makes sense to pull the trigger on a refinance:
- How long will it take to recoup the cost of the refinance through the monthly savings? Generally, if one can cover the cost in less than a year, it is probably worth moving forward.
- How long do you plan to own the home? If there is no plan to sell in the next 5-10 years, even a small reduction in payment can add up over time.
- Are there other debts that you would like to pay off at higher interest rates? In this case the overall monthly savings can be a significant boost to cash flow even if the new mortgage rate is only slightly lower.
- Are there other advantages to refinancing such as getting rid of Mortgage Insurance or wanting to pay down principal at the same time?
Once these questions have been answered, it is a little easier to determine a “strike” point that is a rate at which it makes sense to refinance. Keep in mind that it is impossible to know when the low point in a rate cycle has occurred until after rates have started to climb back up. Avoiding trying to time the bottom of the market and instead identifying a strike point, will help ensure you are able to take advantage of a potentially large savings.
WHAT IS A CONSERVATION EASEMENT?
Did you know there are over 205 conservation easements in Routt County of which 79,000 acres are managed by The Colorado Cattlemen’s Agricultural Land Trust and Yampa Valley Conservation Partnership. As a prospective landowner, what does that mean for a property if it has a conservation easement?
At The Group, it is a question we are often asked. Conservation easements were initiated in the 1930s as a tool for the federal government to protect scenic lands. They became popular after they were made tax deductible through the Tax Reform Act of 1969.
Almost 60% of land in Colorado is privately owned and easements offer a way to preserve natural resources, scenic landscapes, open spaces and wildlife habitats. No two conservation easements are the same, but they protect traditional uses including farming, grazing, fishing, hunting and recreation on the land.
Conservation easements are voluntary agreements made between a landowner and a land trust or government entity like the Colorado Cattlemen’s Agricultural Land Trust (CCALT), with local examples in Routt County including grass pastures, native sagebrush and shrublands, and riparian areas. Public access is decided at the discretion of the landowner.
Once granted, they are permanent and cannot be changed with new ownership. Land in a conservation easement cannot be developed, but it can be sold, transferred or inherited. Each spring and summer CCALT visit each property to ensure the specific terms of the easement is being upheld.
Landowners who donate land have the ability to receive financial incentives, in the form of state tax credits and federal tax deductions, which are said to outweigh the reduction on the value of land. Those tax credits can be sold with the cash used to invest in stewardship efforts, agricultural production, succession planning along with other activities.
Ranching is synonymous with Routt County, where working farmlands and untouched vistas continue to be a priority to protect for generations to come.
Same Faces, New Places
Three Local Steamboat Businesses Expand West of Town
A cluster of new businesses to open in 2024 at Steamboat Basecamp, a multi-use development on the west side of Steamboat Springs vary in service, but they all share one thing in common. Each entity is a well-known fixture to locals, and their decision to expand west cements the direction of growth with the town’s increasing population.
Orange Peel Bicycle Services, Steamboat Fit and Big Iron Coffee have all seen success downtown or on the east side of Steamboat, but aspirations to expand or rising rents caused local owners to evaluate new location options.
Brock Webster opened his initial bike shop 25 years ago at the back of the BAP house on Oak Street. For 19 years Orange Peel was housed in the recognizable “cone” building on the corner of Yampa and 12th streets. He’s seen his business grow exponentially in that time, but when the corner-lot property went up for sale three years ago, he knew it might bring changes. In October 2023, a sale was finalized and Webster started looking into a new location. “I was bummed at the beginning as I knew there was a possibility the new owner will want to develop the space, but then I saw it as a good time for a change.”
Webster and his team set about packing up the shop including artifacts amassed since the 1970s by past inhabitants. Orange Peel went from 1,600-sqft to 1,800-sqft which enabled a larger retail space, along with a full repair shop. “It’s been a lot, but I didn’t realize how positive it was until I was here for a while, and I’m really happy with our new location,” Webster shared.
At Steamboat Fit, the chance to offer more space for clients and support community members living on the west side of town, lured owners Rebecca and Drew Williams to open a second gym in the 4,600-sqft space at Steamboat Basecamp. The move adds to the 4,500-sqft space they already operate at 385 Anglers Drive in the Sundance at Fish Creek retail and office center.
“Our expansion into a second location was in response to the overwhelming success and demand for our fitness services, as well as our commitment to providing a premium experience to our broader community,” Rebecca Williams says. The facility offers a large range of fitness and wellness opportunities, including a dedicated private Pilates studio.
Bowen and Nina Rodkey continue their rising business trajectory in specialty coffee with the opening of Big Iron Coffee Shop next door to Orange Peel. The duo started Big Iron Coffee Co. in 2018, roasting their own beans and selling through wholesale outlets, the Farmer’s Market and for a short spell, a small espresso bar in Downhill Plaza. In late 2018, an opportunity arose to buy Steamboat Coffee House in the heart of downtown, where they’ve fostered a huge local following.
In 2020, they opened a second retail café on the west side of town, which they relocated to Steamboat Basecamp and opened last month. “It’s a great new space and definitely gives us more options for our customers and for us to offer different things,” Bowen says.
THE VALUE OF HOME STAGING
Selling a home starts with making a great first impression. One person who firmly agrees with that opinion is Kim Erhart, owner of Steamboat-based staging company MtnStyle.
Kim is one of many professionals in the real estate business who have seen the results of home staging, even in hot markets. A survey carried out by the Real Estate Staging Association in 2021, found that out of 4500 properties, homes that were staged sold on average $40k over list prices. They also sold an average of nine days faster than unstaged homes. RESA found that investing 1.3% in staging results in an average of 7.1% over list returns.
“Staging is not interior design,” Kim says. “It’s about appealing to a bigger audience and removing the personnel touches most homeowners have in their space.” Earhart works hand in hand with the listing agent and assists clients with preparing their house before it goes on the market.
She starts by meeting homeowners to tour their home and offer a perspective on what changes need to be made. “It can be anything from decluttering and switching furnishings to a full overhaul with new carpeting, fresh paint and making upgrades,” she continues.
The National Association of Realtors found staging the living room (39%), followed by the primary bedroom (36%) and the kitchen (30%) to be the most important.
After maintenance and cleaning, Kim will move or remove furnishings to create a welcoming flow for each room. Over the years she has amassed a collection of furniture, rugs and artwork to enhance spaces if necessary. “In a small room you don’t want the furniture to take over the area, you want it to feel as spacious as possible.”
Her goal is to create a neutral but inviting canvas for any potential buyers. “We want a buyer to easily imagine themselves in a space with their own things around them and not be distracted by items which may not be to their liking,” she says.
A stager is effectively a silent salesperson for the agent and can be a welcome stress reliever for overwhelmed sellers. “Selling a home can be daunting for a lot of people, my goal is to make their job as easy as possible and secure a sale at the end of the day.”
10 IMPORTANT FALL PROPERTY PROJECTS
Outdoor air temperatures are dropping, and the first golden signs of fall are showing their colors. As Routt County locals start swapping out recreation gear for the impending cooler seasons, annual winter maintenance is on the minds of homeowners.
Thinking ahead on ways to ready a home for winter can save time and reduce the stress of limited resources and services.
- Start outside and work inwards by focusing on the yard to begin with. Cool season grasses respond well to being fed in winter. Aerate, fertilize and reseed any bald or thin patches of grass.
- Cut back perennials which require it to keep them healthy year after year. Plant bulbs for spring such as daffodils and tulips.
- As air temperatures head towards freezing levels, drain sprinkler systems and seasonal water features.
- Remove debris from gutters to prevent moisture build up, stop cracks, rot or potential flooding issues.
- If the property has a wood burning stove or fireplace, make sure to clean the chimney and stock up the wood pile.
- Schedule a professional to complete a maintenance check during the fall on heating and cooling systems, vents, and ductwork. This can keep you safe from carbon monoxide, mold spores and other allergens.
- Check over windows and doors to ensure they are well insulated. Add weather-stripping and caulk if needed.