HOW'S THE MARKET?
August is such an exciting time in Steamboat. The town hosts many events that people have been training for all summer long, such as the Steamboat GRVL bike race, the Emerald Mountain Epic running, and bike race events. The kids are heading back to school, and the nights are beginning to get chilly. Now is the time to get those last few items checked off of your summer bucket list, as the season will soon change.
New listings continued to increase through June and into July. For the first time in years, many price categories in town are considered a balanced market and no longer “seller’s markets.” As of July 15, 2024, Routt County currently has 265 active residential listings, and there were 241 in June. That’s up from 174 last month and substantially from June last year (155). The number of current pending listings (93) and pending listings for June (58) has increased from May (51) and from June of last year (54). Closed listings county-wide in June 2024 (46) remained flat from the prior month of May (46) and were also relatively flat compared to June 2023 (44).
According to Freddie Mac, the national average for a 30-year fixed-rate mortgage as of July 11, 2024 was 6.89%. As noted last month, many economists expect a downward rate trend through the end of 2025. If you’re potentially interested in buying a home during that timeline, many experts recommend picking a lender and getting a pre-approval now. That way, you are ready to move forward when the right opportunity arises, giving you an edge in the buying process. If you are considering selling during this time, know that inventory has been increasing, so you’ll need to be effective with your pricing strategy. You may also want to consult a lender to determine what creative lending options they could offer a potential buyer to help you and the buyer proactively create solutions.
Locally, Discovery Land Company continues to make headlines. They recently hosted a Q&A session at the Stagecoach Station and have been polling residents to learn their priorities in the development phase. While no set plans have been verified by Discovery or the Planning Commission, it appears they are continuing to move forward for the time being.
At the Group, we are thankful for these summer days, and we hope you can get in one more epic hike, bike ride, or afternoon of reading by the river before the leaves start to fall.
POTENTIAL COST OF WAITING
Inventory in the Steamboat real estate market has finally begun to see a significant, albeit modest increase. Mortgage interest rates have begun to show signs of moving lower based on easing inflation and other bond friendly economic news. The Fed, too, has signaled that they are likely to begin to lower the Fed Funds Rate this fall, which will also create downward pressure on mortgage rates. The combination of these factors seems to have pushed some buyers to the sidelines to wait for those lower rates before purchasing a new home. Although it is certainly possible that mortgage rates and payments will be lower in six to twelve months, waiting for such a drop has potentially substantial costs.
Greater inventory and higher rates can create the opportunity for a discount off the list price. Conversely, as rates fall, demand and competition heat up, inventory shrinks and discounts become scarce. Add into the equation close to 5% historical annual appreciation in the Steamboat Market over the last 63 years*, waiting a year to make a purchase, although netting a lower interest rate might have a significantly higher bottom line for the buyer.
HYPOTHETICAL SCENARIO:
- Assume an $800K list price with a 20% down payment.
- Assume that the buyer can get that property for 5% less now than in a year – either through a discount today, annual appreciation or a combination of both. We will use a cost of $780K now and $820K in one year to account for both. A mortgage with 20% down would be $624K now and $656K in one year
- Assume a 7% 30-year fixed today (APR 7.070%) and a 6% 30-year fixed mortgage (APR 6.063%) in one year. Principal and interest would be $4151/month now and $3741/month in one year. That would be $410 per month more now than in a year. Multiply by 12 payments equals $4920**
- Include an estimated cost of $4,000 to refinance in a yearTotal cost of higher payments for one year and cost to refinance = $8,920
- Total potential purchase price savings buying now vs one year (aka equity) = $40,000
- $40,000-$8,920 = $30,080. This is the potential Cost of Waiting
There are very few guarantees in the real estate market. There is no guarantee the price will be higher in a year than what you can get now. There is no guarantee that rates will be lower in six months or a year. The only things we know for sure are what price and payment you can get today. Bottom line, if there is a property you are interested in today, purchasing now and hopefully refinancing in the future will get you into your new home sooner and could save you significant money.
*Source MBS Highway. **Financing scenarios are based on a primary occupancy type with a minimum 760 credit score. Rates listed are for illustrative purposes only based on a hypothetical scenario created on 7/24/24 and are subject to change.
Josh Kagan | NMLS 279724. Phone: 970.879.0996.
75 5th Street, Suite F, Steamboat Springs, CO 80477.
Group Mortgage, LLC | Company NMLS 1170166
Equal Housing Opportunity.
BIG PLANS AFOOT FOR HAYDEN
Small town spirit flows through Hayden as strong as the current of the Yampa River. The fast-growing town located 25 miles west of Steamboat Springs, is a place where drivers still give a small wave, and pedestrians stop to say hello. In recent years, the rural locale has grown exponentially, attracting young families, retirees and commuters, who seek the beauty of the surrounding ranchlands and easy access to outdoor pursuits.
Construction is booming with housing projects underway and proposals for more development in the works. The Northwest Colorado Business Park has 13 lots in progress with plans for a new connector road from US 40 to the airport going through the area.
Main Street Apartments, a project bringing 109 units and commercial space to town are underway, with three blocks already built. Prairie Run, which is due to break ground later this summer or early fall will bring an additional 134 affordable housing units to downtown.
Working through the approval phases are 12 live work units in Valley View Business Park, a solar development seeking to lease 4,000 to 6,000 acres south of town, plus a possible 165 acres for the second phase of Lake Village, if water is acquired. Two large commercial industrial sites at Hayden Gulch Terminal received final plat, that once recorded will soon be on the market.
Locals have seen a slew of public upgrades and new community facilities including The Hayden Center which houses the Totally Kids Childcare Facility, a 300-seat auditorium, large gym with weight room and fitness classes, a commercial kitchen for events or rental, along with regular event programing.
The hugely popular Dry Creek Park presents baseball fields, a volleyball court, pavilion for general use, trails for walking, running and cross-country skiing and a frisbee golf course. The nearby Yampa River State Park is another favorite spot in summer for fishing, boating and several swim beaches.
Home to the Yampa Valley Airport and an easy drive to Steamboat Springs, Hayden is well positioned for those looking to balance small town living with the convenience of world-class amenities, right on its doorstep.
BEYOND BOOKS
Why the Bud Werner Library is a jewel in Steamboat’s crown.
During opening hours, the Bud Werner Library in downtown Steamboat Springs is a multi-generational magnet for curious minds. Named after Olympic skier Buddy Werner (1936-1964,) a legendary and much-loved local, who lost his life during an avalanche in Switzerland, the library has been in its current location on the banks of the Yampa River since 1967. A sculpture of his mother Hazie with book in hand, sits outside by the small grass lawn, which hosts everything from children’s picnics to poetry readings.
As the community grew so too did the library. The original 3,445 square foot space was increased to 9,770 square feet in 1997, before the most recent remodel to 28,000 square feet in 2008. Now triple in size, the library holds over 80,000 materials to check-out, 28 computers and printing facilities for public use, meeting spaces, a teen zone and dedicated children’s center. At any given time, you can find window seats filled with readers, friends catching up in the café, toddlers on beanbags with picture books and locals browsing research titles on the light-filled second floor.
“As the public library, it promotes education, enlightenment and entertainment for everyone in our digital and physical collections as well as our programming that ranges from Summer Reading for kids to ground-breaking documentaries and live author events for more mature audiences,” says Jennie Lay, the Literary Sojourn Festival Director & Adult Programs Coordinator.
A rentable 1,700 square feet hall plays host to a slew of events, talks and community fairs throughout the year. Not a month goes by when there isn’t something in the happenings to lure in locals of all ages. Weekly staples range from children’s story hours to book clubs and readings.
The highlight of the year, and one which now brings people from all over the nation to Steamboat is the Literary Sojourn, a nonprofit author and reader festival. “Since its founding in 1993 we've brought more than 150 rockstar authors to Steamboat Springs to awe readers for a one-day fall event that highlights five authors' exceptional books and intimate conversation about their craft,” Lay says. “Sojourn's historic author lineup has included over 150 recipients and nominees of prestigious literary awards including the Pulitzer Prize, the Man Booker and the National Book Award, and this year's lineup is no exception.” Tickets are on sale for the September 7, which includes authors Ben Fountain, Julia Phillips, Laura Pritchett, Hanna Pylväinen and Andre Dubus III as Master of Ceremonies. www.SteamboatLibrary.org.
BE A GOOD SPORT, TRY SOMETHING NEW
The saying “you can’t teach an old dog a new trick,” doesn’t apply in Steamboat Springs to anyone wanting to test out a different pastime. The Yampa Valley is a sports enthusiast's paradise, and opportunities abound from free clinics to guided workshops. Each season brings fresh offerings and summer has a plethora of options to pick from.
Make a Splash
Kayak, paddleboard or canoe with Mountain Sports Kayak School. Clinics and private lessons on the Yampa River or at Pearl Lake, typically last two to three hours, under the guidance of the Smith family and their team of longtime river rats.
Try your hand at casting with Yampa River Fly Fishers. Each summer they offer a free fishing seminar with tips on casting, knot tying and river etiquette. The locally run group is a wealth of knowledge and resources for anyone looking to get hooked on fishing.
Join locals and visitors for open water swimming at Bald Eagle Lake on Mondays until August 5, 2024 from 5.30 - 7 p.m. Sessions are free to members of the Old Town Hot Springs, or $29 for non-members. Sign up is required.
Keep Your Eye on the Ball
Join the swathes of people nationwide who can’t get enough court time with the pickleball craze. New player clinics are offered twice per week on Mondays, 5.30-7 p.m. and Thursdays, 9.30 – 11a.m. at the newly expanded Tennis and Pickleball Center, 2500 Pine Grove Road.
Get into the swing of things at Haymaker Golf Course, the 18-hole city-run facility on the east side of town. Adult “Essentials” Weekly Clinics are available on Thursdays, 4.30-5.30 p.m. and Saturdays, 10.30-11.30 a.m., for $40 per session. Ladies only nights are a magnet for locals on Mondays from 4.30 p.m. The fun-spirited evenings start with one hour of on-range instruction followed by course play. Those looking to try out new clubs have two demo days left on this summer’s schedule to sign up for. Cleveland, August 8 at 10 a.m., Callaway, August 10 at 10 a.m. and XXIO, August 19 at 1 p.m.
Sit in the Saddle
Steamboat Springs has many titles with Cow Town USA among the monikers. If you want to channel your inner cowboy, there is no better way than to try your hand at a cattle drive. Saddleback Ranch invites guests to partake in the daily chores of checking and moving cattle from Tuesdays to Saturdays until September, from 8 a.m. The four-hour experience costs $245 per person.
Opt for the more sedate option of a one-hour trail ride through magnificent countryside in North Routt at the family owned and operated Dell’s Triangle 3 Ranch. $95 for an hour.
Spin the Wheels
The idea of careening down a mountainside on a bike might not seem so intimidating after a lesson or two at the Steamboat Bike Park at Steamboat Resort. Private and Group lessons from one to two-hour options start at $150 per person.
Ladies can sign up for the Ski and Bike Kare Women’s Group. Riders of all abilities meet on Tuesday nights July 23 and August 6, at the Court House Lawn on Lincoln Avenue at 5.45 p.m. The free sessions offer topic specific instruction from braking and climbing, to cornering and descending.