HOW'S THE MARKET?
We hear a common refrain from would-be buyers on the streets: “But there’s just no inventory!” The numbers tell a different story. There are currently 69 offerings across Routt County, the same number as last month, but there were 84 closings county-wide. The average days on market also remains incredibly low, currently at just seven days.
The numbers tell us a couple of things: First, that listings go under contract almost as quickly as they’re put on the market. Second, while standing inventory has remained persistently low, the number of actual closings has ticked up showing that there is inventory; it just sells fast. This has been the trend in Routt County for the last dozen years, however the pandemic super-charged it.
Across the county, the average price for a single-family home remains strong at just under $1.4M, though that is down by $50K from the previous few months. Prices for condos/townhomes continue to appreciate rapidly, now at $820K up 30% from last year. The average price per square foot for all property types in Routt County is over $500. Despite a large jump in mortgage rates, April 2022 has been the biggest month of the year thus far in terms of volume, with $125M in sales. Rates on 30-year fixed mortgages are now solidly above 5%, which will eventually tamp down buyer demand, especially in the entry level market.
With home prices continuing to climb (residential properties in Routt County appreciated between 17-27% on an annual basis each month of the last two years), rising interest rates, and inflationary pressures, many buyers continue to wonder if a bubble burst is on the horizon. Leading economists continue to agree that it’s unlikely; there is still very real demand for homes, and the underlying economic conditions and lending policies are extremely different from 2008. The Chief Economist for the National Association of Realtors, Lawrence Yun, predicted last week that inflationary pressures will slow demand in 2022, which should help control rapid home appreciation (but not bursting any bubbles). Home price escalation, as we’ve seen the last two years, is unsustainable and many housing economists are now predicting 2022 price appreciation to be in the 4-10% range, more in line with historic norms.
With the market moving as quickly as it is, whether you’re considering buying or selling, one of our experienced agents is here to help you with any and all of your questions. Give us a call to find out how.
NEW HOMES ON THE HORIZON
The sound of nail guns, jackhammers and saws can be heard throughout Routt County as construction season ramps up again. Supply chains for construction materials are stabilizing, but labor remains in short supply as the rise in cost of living continues to deter workers from living in mountain communities.
“A lot of high-quality builders are booked out for at least a year or two resulting in clients having to wait,” said Chris Rhodes, owner of Soda Mountain Construction. “There was definitely a spike in demand last year for construction, but things are stabilizing as the available number of properties has diminished.”
The Routt County Building Department reported the total value of construction for 2022 through April as $140M compared to $66M at this time last year. The total construction value for all of 2021 was $378M.
Lack of housing continues to be at the forefront of discussions for the workforce in Steamboat Springs. “Cost of living is pushing people out, which is not helping the trades,” added Rhodes. Earlier this year, the Yampa Valley Housing Authority broke ground on 400 Anglers Drive, a 75-unit development, across from Sundance Plaza. Arco National Construction is managing the build, estimated to cost $27M. Over 800 residents have already expressed interest.
The Yampa Valley Housing Authority (YVHA) is close to completion on another development, Sunlight Crossing, a 90-unit apartment complex on the west side of Steamboat. Unlike Sunlight Crossing, which was designed for middle-income residents, 400 Anglers will be available for residents making 30-80% of the area’s median income. Jason Peasley, Executive Director for the Housing Authority, said there will also be some units for people making as little as $20K a year.
Last December, YVHA bought an 11-acre parcel of land known as Mid Valley with a $6M donation by the same anonymous benefactor who donated the $24M for Brown Ranch. Mid Valley could provide another 200 deed-restricted units, which would make it the largest development so far for YVHA. “We have selected a developer partner, Lone Tree Trust, and will be working on planning and zoning approvals this year with a plan to break ground next year,” remarked Peasley. If the project moves forward as planned, units will be available by Fall 2024.
“A lot of high-quality builders are booked out for at least a year or two resulting in clients having to wait.”
Drawing of the 400 Anglers construction project
A GAME FOR LEADERS
The sound of a driver cracking the ball from the tee box is music to many ears in the Yampa Valley, after the groundcover switches from white to green. In Steamboat, golf has always been a popular summer pastime with three 18-hole courses and one nine-hole course to play.
On June 1, 2022, 50 teams, including a team from sponsor Colorado Group Realty, will take to the fairways to compete in the 34th Annual Y.E.S. (Youth Education Scholarship) Golf Tournament at Rollingstone Ranch Golf Club.
The event is run by the Steamboat Springs Chamber and Young Professionals Network (YPN), to raise money for local scholarships. To date, over $100K has been donated to youth in Routt County. This year $10K will be awarded to a handful of Routt County graduating seniors who meet criteria centered upon academics, evidence of leadership and community integration. Another $3K will be awarded to students at the Colorado Community College Steamboat Springs campus.
“Our mission is to develop the next generation of leaders”, said Angelica Salinas, Membership Director at the Steamboat Springs Chamber and a board member with YPN. Learn more or register at www.steamboatchamber.com
Photo courtesy of Matt Eidt
THE WILD SIDE
Tempt Your Wild Side" is the order of the day on May 26, 2022, at Aurum Restaurant in downtown Steamboat Springs. Chef Jake Berman will be pushed to the edges of creativity as he conjures up tapas dishes for the 22nd Wild Edible Feast. The highly successful event is an annual fundraiser for Yampatika, Steamboat’s environmental education non-profit organization.
Ticket holders to this year’s event will mix and mingle between five stations offering dishes made from freshly harvested edibles and proteins. Ledesma will be dictated to by weather conditions and what is available. In the past, seasonal staples included wild onions, dandelion leaves, and ferns.
Guests will be joined by local naturalists for a presentation on drought-tolerant native plant landscaping and available resources. Money raised supports environmental education in the Yampa Valley. The Colorado Group Realty Charitable Foundation is a proud supporter of this event.
Please visit www.yampatika.org for tickets and more info.
BROWN RANCH INCHES FORWARD
From the beginning, the Yampa Valley Housing Authority set a clear goal for the 534 acres donated to them by an anonymous donor last year. They will “thoughtfully plan and develop the land in a manner that is it community-driven and affordable to all income earners.”
A twenty-person steering committee of community members was chosen to spearhead the development under direction from design consulting firm Mithun. The committee created five focus groups to work on infrastructure, urban design, natural and built sustainability, housing and non-residential demand, stewardship and project economics. The first public listening session was held this January, which generated a plethora of hopes and concerns.
Among some of the hopes, the community identified the following:
- Opportunities for local workers of every income level to create housing mobility.
- Open space, bike paths, and walking trails.
- A grocery store and other key commercial services for the west-end neighborhoods.
- Innovative solutions for water and clean energy.
- A recreation center with a swimming pool.
- Help solve the housing crisis and enable businesses to better find workers.
YVHA has identified a need for 2,300 subsidized housing units by 2040. Of the 534 acres at Brown Ranch, 324 acres are developable, 116 acres have restrictive topography for development and 114 acres are outside the urban growth area.
The first phase of construction will include around 1,100 building units with a goal to develop a total of nearly 2,300 units by 2050.
An estimated $400M is required for infrastructure, which would be paid over time to cover necessities such as roads, water, sewer, recreational green spaces, and electric. In a statement to City Council YVHA, Executive Director Jason Peasley said, “These are enormous, daunting numbers, but they don’t have to be addressed in one fell swoop. We have a challenge as a community to tackle this and see through our vision of creating a neighborhood entirely for locals.”
In April, Sen. John Hickenlooper toured Brown Ranch, and said he believed it could become a model for other communities to follow, who are facing housing shortages. YVHA has made two spending requests to congress, one for an $800K water line and one for electric upgrades at Brown Ranch, amounting to around $30M. “I can see this getting federal funding because this is a problem that is not just happening in Colorado, but it’s happening all across the country,” Hickenlooper said.
Whether the local community agrees to back the project in its entirety remains to be seen. City Council must vote to annex the land, which is currently in unincorporated Routt County, into the City of Steamboat. It will ultimately be up to city voters to decide if the development will proceed.