Colorado Group Realty Insider - July 2021

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Warm weather, hot housing market; that seems to be the case in Routt County!
The number of active listings remains low with 134 active listings (excluding
fractionals) throughout Routt County compared to 406 listings this time last
year. This dearth of supply encourages a competitive marketplace with many
properties receiving multiple offers. Indeed, the average days on market this
year is just 39, while it was 93 through the first six months of 2020.

The lack of supply and increased demand continues to exert upward pressure
on pricing: the average closed price of homes of all types is up 29% countywide
and up an eye-popping 34% in Steamboat Springs. Price per square foot
is now averaging $562, up 40% from last year, pricing many hopeful buyers
out of the market.

New listings hitting the market spiked slightly in June (93 new listings
compared to just 65 in May) but buyers snapped up the vast majority of
those listings quickly, a trend that doesn't seem to be changing. Sales volume
for June crested $100M which is almost double the pandemic-dampened
sales volume from last June. So what are buyers and sellers to do in such a
competitive market?

For buyers, preparation is key. Perhaps the most important thing a buyer can
do is have their financing in order. In Steamboat, over 50% of homes are being
purchased with all cash, putting buyers using a loan at a disadvantage. This
year, the average sale-to-list price is 100%, with some homes going for 108-
112% of ask price. Buyers need to ensure that their offers are submitted with
pre-approval letters (if their deal will be financed) or proof of funds (if paying
in cash). Buyers also need to be ready to act immediately as many homes have
multiple offers within hours of listing.

For sellers, although it is a "seller's market", preparation is also key if they are to
demand top dollar. There are many buyers competing for the same properties
so a bit of planning and elbow grease before listing a home can go a long way
to ensure the best offer. Sellers should also remember that the highest price in
a multiple offer scenario isn't always the "best" offer.