What is Happening on the Market in Steamboat Springs

By Martin Dragnev

Dear All,

The current housing market nationwide, as you all know, has been in turmoil compared in many instances with some of the worst economic times our country had been through. Routt County is not immune against all the nationwide trends as being primarily a second home/vacation home market is in direct correlation with the Stock and Bonds markets and the housing market in the big metropolitan areas. Many of you are asking, How are all the short sales and foreclosures affecting our home values? What is going on with the average home price in our neighborhood? How are the most recent sales affecting our ability to sell or refinance? Is now really the best time to buy or is that simply yet another sales tactic?

I would like to give you some numbers to help you better understand the market conditions we are in. With just a few weeks remaining in the year, Routt County has already established a new record in foreclosure filings in a calendar year (274) and public officials expect to finish the year at about 300. The previous record of 234 was set in 1985 as a result of the Savings and Loan Crisis. As of today, our MLS system shows 48 active residential foreclosures in Routt County and 27 pending sales. Those numbers show that lots of buyers are taking advantage of the great opportunities that the market presents them with. I was able to help a young family obtain their first home this summer in the Stagecoach Area where they got happily involved with a 3BD/3BA, 2500 square foot home with 2 car garage and the size of their investment was in the low $200’s.
This is also good news for sellers trying to put their home on the market as most of those bank owned properties are getting absorbed rather quickly.

Taking a closer look at the Short Sales, there are currently 62 active and only 3 pending sales. Short Sale is the process in which the lender (the bank) agrees to take less funds (shortage) than what is owed to them by the borrower in the sale of his home. This is very complicated and time consuming process and you would most likely need a real estate professional with knowledge in that area to assist you through the process.

So, let’s explore some of the questions you might be asking yourself.

How are all the short sales and foreclosures affecting our home values? What is going on with the average home price in our neighborhood?

Short sales and foreclosures are usually priced towards the low end of the market and have the potential of bringing the average neighborhood price down. Please keep in mind that banks do property evaluations often and even though they are willing to give buyers a good deal, they are not simply giving properties away. On the flip side of that coin, most of the distressed properties are in somewhat of a deteriorated condition and need to be purchased in AS-IS condition which caries certain doze of risk and some buyers are not going for that. Also being priced aggressively helps getting them absorbed by the market quickly and reduces the number of homes for sale in a given neighborhood and therefore the competition.

Is now really the best time to buy or is that simply yet another sales tactic?

Mortgage interest rates is another factor making this market such a unique opportunity for buyers. Even though they had started to trickle upwards, they are still near historically low levels. There are great first time home buyer programs available out there like the United States Department of Agriculture (USDA) loan which is a program with no money down and the Colorado Housing and Finance Authority (CHFA) loans. Programs like these in combination with down payment assistance programs, like the one administered locally through Yampa Valley Housing Authority (YVHA) are very powerful tools available to buyers.

Of course, I don’t have a magic wand to tell you when the market will bottom out but I have remained very active throughout the year and there have been lots of opportunities on the market. There are many reports and industry specialists are pointing out that 2011 will be a break through year for real estate and I am hopeful that by next spring there will be a spur of activity on the market locally. As local professionals like to say amongst themselves…”Buyers always like to look at opportunities in the winter and invest in the summer”.

So…is getting happily involved with an investment in Steamboat now a good idea? I would say…Yes. You are never going to be able to time the market perfectly and with most sellers being upside down on their home equity, I don’t see prices going down too much further for the most part. That, combined with the low interest rates and some of the great loan and down payment assistance programs provides for real buyers market.

I’ve been fortunate enough this year to continue being involved in the Real Estate industry, working with Sellers and Buyers alike and trying to find the perfect home for folks who still dream of having a place to call home in Steamboat.

I’m happy to assist you in any way possible, so please feel free to contact me on my cell phone 970.291.9412 or shoot me an email at martin@mybrokers.com

Martin Dragnev

Sold in Steamboat Springs for the week of Jan 11th

Just released: all the sold real estate opportunities in Steamboat Springs in the last week. Again we see some short sales and foreclosures on the list which have been the primary moving force on our market. To see the homes click here.