As you watch your neighbor’s home go under contract in less than a week for well above list price and multiple offers, you may be wondering, is now the right time to cash out? While this question ultimately comes down to your own personal decision on whether or not a move is right for you, we are here to tell you that it may just be the ideal time.
What we are experiencing is a perfect storm in the real estate market.
Unless you live in New York City or San Francisco, housing inventory in desirable locations such as Steamboat Springs, CO is low and price tags are at all time highs.
Low inventory, low interest rates, and pent up buyer demand from stay at home orders are creating a supply and demand imbalance all over the country and Steamboat is not immune from it. Sellers are holding onto their homes for various reasons mostly due to a worldwide pandemic and more buyers are in the market due to low interest rates, lifestyle optimization, and pent up demand from a halt in inventory. Demand is out succeeding supply in historic numbers.
Economic crash course 101 - supply and demand make the economy tick and when the equilibrium is off, it creates a sense of urgency on both sides but particularly the demand (buyer) side.
To put it into perspective, the $800,000 mountain oasis you purchased in Steamboat at the beginning of last year is now valued over 1 million dollars. We have seen a 36% year over year increase in median sales price and the inventory has almost been cut in half since the same quarter in 2019. Since the supply of mountain homes is low, the available properties are going under contract much faster and often well above asking price with multiple offers.
This begs the million dollar question, is now the right time to sell? We think it is.
There are motivated buyers out there eager to purchase a home in mountain towns like Steamboat Springs and who can blame them? Buyers are moving out of the city at alarming rates and opting for views, recreation, and the “live your best life” lifestyle Steamboat over provides.
The work from home revolution has transformed mountain town living opportunities. Only a few short years ago, it was not uncommon to cram into an apartment in the city to be close to your office. Now that the remote shift is full steam ahead and not slowing down, it is the best opportunity to fulfill one's dreams of finally living in a ski town. Lunch laps anyone?
Is now the right time? This market is unlike any other we have seen. In typical times, if you were pulling out your onesie for gaper day with spring looming in the air, I would advise you to start getting ready to list in the upcoming busy summer months. However; this is not a normal market and mud season is not our typical indicator to start prepping your home. My advice would be to get it on the market as soon as possible to beat the summer “rush.” But first, have a plan on where you are going to live.
If you’re lucky enough for this to be your second home, you may not need to make a purchase quickly and you can wait until some inventory opens up to purchase your next mountain oasis.
Whatever your motivations are, I am with you every step of the way to navigate this dynamic market with your best interests at heart. Through my extensive knowledge of the Steamboat market, I will make sure to do everything I can to get top dollar for your home. You are my top priority. Reach out for a free market analysis.