Pricing Not a Cookie Cutter Exercise in Steamboat Springs Real Estate

Pricing Not a Cookie Cutter Exercise in Steamboat Springs Real Estate

As a recent article in the Wall Street Journal  pointed out, “It’s not easy being a home builder these days.” That’s a logical conclusion to come by given that:
* Total home sales are at record lows
* Foreclosure prices are luring potential new-home buyers away
* People often can’t qualify for loans despite low mortgage rates

Even Census Bureau data points to a ‘New Normal’ for new single-family home prices.

WSJ Article by Matthew Strozier
WSJ Article by Matthew Strozier

Rick Palacios, a senior analyst at John Burns Real Estate Consulting, pointed out that since new-home prices peaked in 2007, new single family sales of more than $500,000 have gone from 13% to 6% of the market. Sales of new homes priced under $300,000 now account for roughly 75% of all new single-family sales. Buyers want affordable homes and what people can afford on average has gone down.

Looking at 2011 existing home sales in Steamboat Springsentry level price points dominate the share of sales. But be careful because these numbers can be misleading; most of these sales were comprised of condominiums and were in fact second or vacation homes, not primary residences. And yes, this data focused on existing, not new home sales. But affordable is affordable…new, old or in-between.

2011 Steamboat Condo Sales
2011 Steamboat Condo Sales
Yet as I’ve stated before, it’s dangerous to generalize when talking about real estate. Even in condominium sales, bigger (and more expensive) can be better as I wrote about in the case of Edgemont, the premier slopes-side condominium development in Steamboat Springs, where all the 4 and 5 bedroom units are sold out as are 75% of the 3+ bedroom units. New condominium and townhome developments are in the works for the ski mountain area, and entry level, below $300,000 price points, are not in those plans.
Edgemont Condominiums, Steamboat Springs
Edgemont Condominiums, Steamboat Springs

Real estate is indeed local, and while Steamboat Springs has had its share of foreclosure sales, there continues to be demand for luxury primary and secondary homes.

—For more information on buying real estate or questions regarding Steamboat Springs real estate  in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com

Thanks,

Charlie

15 East Spruce Street, Steamboat Springs, CO
15 East Spruce Street, Steamboat Springs, CO
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About SteamboatsMyHome.com

Originally from Seattle, Washington, Charlie relocated to Steamboat Springs with his wife Carol and their son, Finn, to become a Steamboat Springs realtor eager to share the joys of Colorado. Charlie is a second generation realtor and is proud to be a member of Steamboat Sotheby's International Realty in Steamboat Springs, Colorado. After graduating from Whitman College in Walla Walla, Washington, Charlie worked in the high-tech industry in Seattle for several years before deciding to follow his father's lead and began his career in real estate. Working for Windermere Real Estate in Seattle, Charlie had a great, innovative career in the highly competitive Seattle market before moving to Steamboat in 2005 and delving deep into Steamboat Springs real estate. At Steamboat Sotheby's International Realty, Charlie has become one of the top agents with his innovative style and tireless perseverance.
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