HOW'S THE MARKET?
“Season’s Greetings!” from your friends at The Group Real Estate! The Yampa Valley has been blessed with plentiful and fluffy dustings in the early season, amounting to over 130 inches so far! With great snow and new flights in to Yampa Valley Regional Airport this year, the holiday season is bound to be bustling.
As of December 12, 2022, Routt County has 138 active residential listings. That’s down from 143 this time last month, and down from this time last year (191). The number of listings currently under contract (29) is down from this time last month (55), and also down from this time last year (47). Closed listings county-wide are also down somewhat, with 46 last month compared to 91 in November of 2021. The average sale price county-wide is holding steady at about $1.3M.
The average days before a property goes under contract is holding relatively steady compared to last month, at about 30 days county-wide. Price-per-square-foot has actually increased, from about $610/sqft to $705/sqft in the City of Steamboat. Over the past year, the ratio of asking price to closed price was 100.22% (meaning that homes sold, on average, slightly above asking price). The closed price ratio is holding steady to last month at about 97%, meaning that homes sold, on average, slightly below asking price. Sales in the 90ish percent range are still close to asking price, meaning that homes are still in high demand.
If we just focus on the past few months, one might think the outlook is bleak. After all, interest rates are higher than they have been, closed price ratio is down, days on market is increasing . . . But if one zooms out, one sees just how far our mighty valley has come: In December of 2017, the average closed price county-wide was $682K, and average price-per-square foot was $315; in December of 2019, the average closed price was $800k, and average price per square foot was $335. Average days in the MLS was 81 in 2017, and 65 in 2019. We’ve come a long way in a few short years!
Ultimately, whether you’re considering buying or selling, our agents are expertly trained in helping you zero in on what makes the most sense for you and your family. We’re here to help you with any and all of your questions. Give us a call to find out how.
SHORT-TERM RENTAL TAX PROVES CONTROVERSIAL
On November 8, 2022, residents in the City of Steamboat Springs voted overwhelmingly in favor of Ballot 2A, to implement up to an additional 9% tax on short term rentals, which will sunset in 20 years at the full 9%. It takes the total tax on short term rentals to 20.4% but does not apply to other lodging outlets such as hotels. The hard-fought measure was met with mixed emotions.
The city states “a short-term rental is defined as a dwelling unit offered, provided, used, or operated as a lodging accommodation to guests in exchange for remuneration for a period of less than 30 consecutive days while the owner or other permanent resident does not reside in the dwelling unit. The term short-term rental shall only apply to periods of time when the owner or other permanent resident is not residing in the dwelling unit.”
City staff estimate it could generate an additional $11 million of revenue per year for the next 20 years. The monies raised will be used for affordable housing, an issue haunting mountain towns since the start of the pandemic. Jason Peasley, the executive director for the Yampa Valley Housing Authority, said this significant investment in housing will open a lot of doors. The YVHA is currently working on the Brown Ranch Development, a 534-acre site west of downtown Steamboat, which aims to provide 2,264 homes by 2040.
The Steamboat Springs Community Preservation Alliance opposed Ballot 2A, and does not believe Brown Ranch is the answer to meeting Steamboat’s current housing needs. Robin Craigen, CEO of Moving Mountains and vice president of the alliance said he thought it would take too long in the short term and is not the right solution for Steamboat long-term.
Steamboat Springs was not the only Colorado town to vote in favor of raising taxes on short term rentals. Aspen, Carbondale, Dillon and Salida joined the likes of Telluride and Crested Bute, who already enforce a higher tax on properties in the short-term rental pool.
Housing shortages for the local workforce is a common problem throughout mountain towns, exacerbated in part, by the rise of second homeowners, increased home values, and the lucrative income opportunity from short term rent through companies such as Airbnb. In June 2022, the Steamboat Springs City Council voted in favor of an overlay zone to create boundaries for three different zones within city limits, to regulate short term rental units. Zone A (green) is unlimited, Zone B (Yellow) is restricted, and Zone C (red) is prohibited. Three types of licenses were put in place for each zone.
Unrestricted licenses are required for all short-term rentals located within Zone A of the Short-Term Rental Overlay. Restricted licenses are required for all short-term rentals located within Zone B or Zone C of the Short-Term Rental Overlay. Hosted licenses are required for all hosted short-term rentals.
Short-tern rentals and hosted short-term rentals will need to obtain a license before April 30, 2023. If a property is located in zones B and C and has been used as a short-term rental for 12 months prior to June 15, 2022, the property owner must provide evidence of bookings, sales tax collections and remittance to apply as a legal nonconforming use.
KEEPING IT SAFE IN THE BACKCOUNTRY
The solitude of a day on snow, cruising the backcountry on skis or snowboard is magnet for many. Sound idyllic? It is if you are prepared and know what to expect. The Group sat down with Eric Deering, Director of Operations for Steamboat Powdercats, and a course leader for The American Institute for Avalanche Research and Education (AIARE), to get the lowdown on the basics.
The Group: For someone heading into the backcountry for the first time, what advice can you give them?
Eric Deering: Either go with a guide or with a friend who has plenty of experience and can mentor you. Set your sights lower on what you want to achieve to reduce the margin of error. Use an established trail, like Bruce’s Trail on Rabbit Ears Pass, where you eliminate route finding and can follow the signs. It’s close to a road and there will likely be other people. You can build from there.
TG: What do you need with you when going into the backcountry?
ED: Firstly, dress in layers in 3W clothing – warm when wet, which is moisture wicking material like wool or synthetics. Do not wear cotton. Use a warm waterproof shell and pack extras like socks in case you need to switch out. If you plan to hike, use lighter gloves for uphill and a thicker pair, or mittens for skiing down. It also works if the weather changes.
Take a backpack with a knife and multi-tool repair kit in case your set up fails, snacks and plenty of hydration, a first-aid kit, rescue blanket, headlamp, fire starter, navigation device like a handheld GPS, maps, and a compass. A comfort kit so you can leave no trace is good. If you plan to use terrain over a 30-degree angle, pack a shovel, probe, and beacon. A small, rolled pad is handy for keeping off snow, especially if someone gets injured. Nine times out of ten most of the items never get used, but it will be the one time you don’t take these things that you need them.
TG: Colorado saw 16 deaths from avalanches in the 21-22 season. How should one prepare for heading into steeper terrain?
ED: Before you go, check the Colorado Avalanche Information Center for conditions and the latest reports. Look for signs of prior avalanches in the area and unstable snow. If it shoots cracks around your skis or board, or makes a "whumpfing" sound, these are warnings.
TG: For an expert backcountry challenge, where do you recommend?
ED: North Routt and the Zirkels.
Steamboat Powdercats runs several Backcountry 101 classes and a Level 1 AIARE Avalanche Course throughout the winter.
Colorado Avalanche Information Center offers Know Before You Go (KBYG) courses, including one for motorized sports.
THE ULTIMATE STEAMBOAT STOCKING
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Blüml’s Artisan Chocolate Snowball by Daniela at The Homesteader. A handmade chocolate bomb you will melt in a saucepan of cream, into the most delectable wintry treat yet. This one is meant for sharing. www.blumlschocolate.com
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Little Moon Essentials "Tired Old Ass™" bath soak for that much needed time in the tub after a day on snow. Available at Lyon’s Drugstore & Soda Fountain. www.littlemoonessentials.com
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Handprinted t-shirt from Ohana, emblazoned with a favorite Steamboat icon from Howelsen Hill to Hahn’s Peak. Youth and adult sizes. www.mtnohana.com
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Daypack Rain Cover by Big Agnes for those who love to travel away every now and then, from the Colorado bluebird sky. www.bigagnes.com
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"The Springs of Steamboat" by Dagny McKinley at Off the Beaten Path. Brush up on local history and find out the significance of the many springs which bubble, or bubbled, in the ‘Boat. www.steamboatbooks.com
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Point 6 socks offers the chance to give a gift in more ways than one. Their Wild Playground Series donates 25% of every sock sold to specific causes including the National Forest Foundation, Trout Unlimited and Warrior Expedition. www.Point6.com
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Glass-blown holiday ornament by local glass artist Jennifer Baker at the Pine Moon Gallery. www.pinemoonfineart.com
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Honey Stinger snacks for athletes young and old, or anyone who loves a gummy that packs an energizing and tasty punch. www.honeystinger.com
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A 6 oz stainless steel flask, powder coated, and emblazed with a map of the Steamboat Ski Area, or a city map by Coleman’s Haberdashery. www.colemanshaberdashery.com
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A bag of fresh beans from Steamboat Coffee Roasters to kick off Christmas morning. Choose from 15 varieties with names to make you smile, from Nordic Jumping Beans to Moose Drool Mud. www.steamboatcoffee.com
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