A Real Estate Trend That is Steamboat Springs Friendly
Second home owners are common in Steamboat Springs, and the real estate market in Steamboat Springs thrives on Vacation and Investment Home Buyers seeing the advantages of owning property in Ski Town USA®. The National Association of Realtors 2012 Investment and Vacation Home Buyers Survey, reported that sales of investment and vacation homes jumped in 2011 to a combined share that reached its highest level since 2005. Specifically:
- Investment Home sales increased 64.5% in 2011 vs. 2010
- Vacation Home sales increased 7.0% in 2011 vs. 2010
- Investment Home sales share of all 2011 transactions rose to 27% from 17% in 2010
- Vacation Home sales share of all 2011 transactions rose to 11% from 10% in 2010
- 41% of Investment Buyers purchased more than 1 Investment Property
Clearly, cash-ready Investors took advantage of the deteriorated housing market in 2011. Bargain home prices and high rental income potential were the main incentives behind Investors scooping up available investment properties. This surge in Investment Buyer spending helped absorb the large number of foreclosures hitting the market and ensured these foreclosures didn’t linger on the market and further depress home prices in general.
- 49% of Investment Buyers paid cash in 2011
- 42% of Vacation Home Buyers paid cash in 2011
- 50% of Investment Home purchases in 2011 were distressed homes
- 39% of Vacation Home purchases in 2011 were distressed homes
Steamboat Springs’ market saw a large percentage jump in the share of sales below the $300K price point. In 2010, sales of Residential Improved Units under $300,000 made up 33% of total sales, while in 2011 sales of Residential Improved Units under $300,000 made up 48% of total sales. It appears that Vacation and Investment Home Buyers swooped in and purchased a large portion of Steamboat Springs’ distressed inventory, and in the process ensured they’d have access to accommodations for many Champagne Powder winters to come.