By Ryan Stafford June 1, 2006.
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Summer Brings a New Buzz
As expected this spring has been awesome. The spring run-off for the Yampa River has been great for boating and my river trip through dinosaurs went very well. Very little rain and lots of sunshine have melted most of the snow and we are headed into the summer season. All of the high alpine roads should be opening soon and that means it’s time to climb.
I want to take a moment to reflect on the past year in the Real Estate market for Steamboat and look to the future.
November started us out with a bang and dumped the largest base of snow for November in decades. That snowfall I think led to a buzz in the ski community to get out to Steamboat this winter. Well, the snow did not stop all season and neither did the skier visits. With all of this attention to the snow came some newfound interest in the real estate market. People that were visiting were seeing firsthand how low the prices were in Steamboat compared to other resort areas. They began snatching up a lot of the condos in the mountain area, to a point where there was not enough supply. Anyone who has taken economics knows that when supply is low and demand is high prices rise and that is precisely what has happened. Condos on the mountain and especially the smaller units have seen upwards of 30-40% appreciation over the last year. Currently, there is almost a bidding war anytime a condo comes on the market for under 200k.
What does all of this mean for Real Estate in Steamboat Springs?
It means a couple of things. First, the time for getting a 2-bedroom 2-bath condo for under 200k is over because the new developers are building and their entry-level pricing is usually in the 300k range. If you currently own one of these condos you may want to consider taking some profits before all of this new development provides too much competition and a newer more modern product. Secondly, this means that Steamboat is heading into a new and different kind of market. The level of sophistication that is being introduced will bring Steamboat into the modern era of ski resorts. We are in the early stages but make no mistake we are on an upward rise that should last the better part of a decade. Several new developments have passed through planning and are breaking ground. These developments will provide a variety of products that should be able to suit all types of consumers. There is one area of growth that I find to be of great interest and that is on the upper end of the scale.
Several new Land Preservation Subdivisions have recently been filed and are now under construction. These are communities where the land and environment are mostly left undisturbed to retain their natural characteristics. These include projects such as Sidney Peak Ranch, Marabou, Alpine Mountain Ranch, and the Tailwaters. Each of these will cater to a mountain and recreation lifestyle, providing fishing, riding, and any other activities that its owners prefer. I believe that these new communities will provide the basis for our new and emerging market. All of the principles that are involved with these projects bring a wealth of experience to the table and only the best should be expected from them. For the person who is looking to have a mountain getaway close to a strong and vibrant community, then these new LPSs will bring together all of the amenities and comforts one would want.