This month Darrin Fryer of The Fryer Group at Steamboat Sotheby’s International Realty shares his insider view on the Steamboat Real Estate Market:
Momentum Continues To Build in Steamboat’s Real Estate Market
There’s lots to talk about when it comes to the real estate market in Steamboat Springs. Locals and visitors alike love to posture on what’s happening now and next. What I can share is that behind the talk there are plenty of real changes going on and lots of plans in the works.
The Ikon Pass
The multi-destination Ikon Pass, that includes Steamboat Ski Resort that was introduced last Winter, has changed the game. The talk amongst locals last season was “where are all these skiers coming from?” The short answer was The Ikon Pass. Yes, it definitely opened up a big market of skiers looking to sample some of the country’s best powder and tree skiing, and also soak in an authentic mountain town, and confirmed Steamboat as a premier destination ski resort alongside other top tier choices like Aspen CO, Jackson Hole WY, Big Sky MT and Mammoth CA.
Investment
The new Timber & Torch restaurant at the base of the ski mountain has revitalized the mountain base area. The new gondola set to open this year promises to minimize congestion and speed up mountain access - a reason why Steamboat has always appealed to visitors over the busier I-70 Colorado resorts. The Steamboat Ski & Resort Corporation is also promising significant capital improvements to come. There’s also momentum and increased demand for real-estate with people moving here from the front range and out of state who have the ability to operate their business’s virtually. What a place to base yourself!
New Development
Last year also brought the new Homewood Suites by Hilton on the Southside of town and now there’s a new Marriott with 110 rooms being built on Pine Grove Road, close to the mountain area. The demand for Steamboat Springs is growing for sure with developers gaining confidence in the future trajectory of this market. I personally know of a number of other significant projects in the works, but they still need to be finalized and approved.
Market Conditions
Is the momentum a bubble or genuine indication of improving market conditions over the long-term? The big difference now from the market in 2007 that historically 80% of high-end purchases were financed with loans and now approximately 80% + are paid in cash, which demonstrates a far more stable market. With the stock market being so strong, it’s easy for people to liquify some money out to the stock market and gain rental returns on their real estate. These sophisticated buyers get to have the best of both worlds: to enjoy an asset for their family; and, secure a solid rental return on their asset by working with a professional rental management company like Moving Mountains.
Recent Indicators
One milestone transaction was the recent sale of a 5,700 square foot home in Temple Knolls at the base of the ski mountain. This sale set a new market record at $835 per square foot. This five-bedroom and 6-bathroom home, with views of the Flat Tops and easy access to the ski mountain, sold for $4.77 million by the Fryer Group at Steamboat Sotheby’s International Realty in June 2019.
Temple Knoll home sale set the new market record for real estate sales within the City of Steamboat Springs.
Another was the sale was of the Wildflower Meadows, one of Steamboat Springs’ most impressive properties with 118 acres in the heart of the Yampa Valley and only three miles to the Steamboat Ski Area. It sold for $10,250,000 which is the highest sale outside of the City limits.
Overall, Steamboats market is on an upward trajectory. Having said that, all boats don’t rise equally. Sale of Steamboat’s single-family homes are far outperforming condos and townhomes over the past five years. See here:
Please feel free to contact us at any time for a free, no-obligation consultation.
Darrin Fryer Ryan Cox
T: 970-846-5551 T: 970-819-5359
darrin.fryer@steamboatsir.com ryan.cox@steamboatsir.com
