Neighborhoods once considered “off the beaten path” may be the next ones to boom due to the lack of reasonably priced supply in town.
It’s often the distance to Steamboat Springs and the Ski Resort that are dictating the increased sales prices, not necessarily the quality of the structures.
Looking Around for Great Value
By Cameron Boyd
In a time when Steamboat Springs is experiencing record breaking sales volume and price increases, many home buyers are looking for properties farther away from downtown and the ski mountain in hopes of getting more for their money. The outlying communities at Stagecoach, Oak Creek, Clark, and Hayden are becoming the only options for young adults and families looking for more than just a condo or townhome.
New residents of the Yampa Valley, and those who need to change their current housing situation find they can often afford more square footage, land, views, high quality finishes and privacy by driving fifteen or thirty minutes outside of town. The current prices in these surrounding communities are much more affordable and there’s ample inventory to choose from.
A staggering fact is that the overall sales volume in the local real estate market for 2007 reached $1.587 billion which was 141% of 2006. Most surprising however is that the total number of units sold fell from 3,477 to 2,555. The reality behind these numbers is that locals who are looking to buy property now are paying the premium. This mere fact alone is forcing people to look outside of town for more affordable homes.
This is one reason why developments like the Neighborhoods at Young’s Peak in Stagecoach and The Villages at Hayden are so attractive. These types of communities are offering residents more square footage and larger lots than they could afford in the Steamboat city limits and supply amenities such as community “open space.” It’s often the distance to Steamboat Springs and the Ski Resort that are dictating the increased sales prices, not necessarily the quality of the structures. Residents of Routt County could do quite well for themselves by opening their search area to these outlying communities.
For example, 3 bedroom homes with approximately 1500-3000 square feet in the city limits of Steamboat Springs had an average sales price of $690,000 in 2007. During the same time period, homes of similar size sold for an average price of $464,600 in Stagecoach. With the estimated median household income of Routt County approximately $57,000, the dream of owning property within Steamboat city limits at today’s prices becomes a difficult challenge.
A recent search of what $400,000 would buy you in the surrounding areas, discovered that, starting with Stagecoach, $400k would secure you a single family home with 4 bedrooms and 3 bathrooms and attached garage in the Coyote Run Subdivision. For roughly the same price, a person could grab a 3 bedroom, 1 bath home on a .16 acre lot in downtown Oak Creek. Looking west to Hayden, investing $400,000 would allow you to buy a brand new 3 bedroom, 2 bathroom single family home with a two-car garage on 35 acres in Johnson Ranch. Not bad when you consider that for the same amount you’d only get a 2 bedroom, 2 bath condo at Sunray Meadows (Steamboat mountain area) and would need about $500,000 or more to get a 2 bedroom, 2 bath condo at the Residences in Old Town (downtown Steamboat Springs). As a result of the Steamboat sprawl that has already begun, prices for a home in Steamboat II start in the mid-to-upper $400’s.
So what does this all mean for the outlook of real estate in our valley? All of these areas have experienced appreciation over the years, dependent on the initial investment and improvements made since the purchase. Location, view, condition of the home, upkeep and surrounding development are all variable factors involved in determining individual gains. But neighborhoods once considered “off the beaten path” may be the next ones to boom due to the lack of reasonably priced supply in town.
Compare what has happened in Pitkin County. In 2007, the average price of a single family home in Aspen was just shy of $6 million. In Snowmass Village, the average price was roughly $4.65 million. Looking down-valley, the town of Basalt averaged $1.34 million for a single family home and in Carbondale the average was $866,000. This is a prime example of a similar area experiencing down-valley growth due to skyrocketing prices close to town center.
No matter what area you’re looking to buy, your best avenue for maximizing your return on investment is always to talk to your Realtor first. Discuss in advance the factors relating to your specific goals and finances in mind. And remember, when looking around for value in real estate, don't forget to take a break once in awhile. Between the facts and figures, crunching the numbers and finding that perfect property, I hope you take the time to enjoy the beauty that brought you here in the first place. 
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Winter 2007