Colorado Group Realty Insider - July 2022

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How's the Market?

As we bask in another epic Yampa Valley summer, the local real estate market continues
to flow steadily. Last month, there were only 117 residential properties for sale in Routt
County; this month, we’re up to 177. This is welcome news for buyers, who haven’t
experienced inventory at this level since last summer. More inventory has proven to
mean more transactions: there were 89 closings county-wide in June, which is nearly
double the amount we had in January 2022 (which only had 48 closings).

While inventory levels still don’t meet the current demand, inventory has increased
from 1.3 months in May to 2.1 months now. When supply and demand are balanced,
there is around six months of inventory. With a more balanced market, the massive
price appreciations we’ve seen the last two years will begin to normalize. The last
couple of months have also led to more price reductions at all price levels and property
types. Indeed, the average close price dropped from May’s all-time high of $1.425M
to $1.28M in June.

The rapid increase in mortgage rates, along with persistent high inflation and fears of
an impending recession, have all significantly dampened demand across the country.
The Federal Reserve continues to indicate that their desire is to cool off an overheated
housing market; however, that impact hasn’t been felt locally (yet) as the average days
from list date to close date in Routt County dropped from last month. In May, average
days from list to sale was 38 and in June, average days fell to 20.

We are nearly a month out from the Steamboat Springs City Council’s implementation
of the short-term rental overlay zone; thankfully, over the last month things have
become clearer. Information on the new short-term rental regulations can be accessed
at www.steamboatsprings.net/str

Briefly, if you can demonstrate that you: (1) rented your property as a short-term rental
in the 365-day period from June 15, 2021 through June 16, 2022; (2) can prove that you
rented your property as a short-term rental during that period; (3) have paid your sales
taxes; and (4) applied for a legal nonconforming use status through the City’s website,
then you can continue to short-term rent your home, no matter the rental zone.