Looking at 2021, it was a year of perspectives. Feelings about Covid ran the spectrum from better, the same, or worse than 2020. Attitudes towards real estate transactions were good, bad, or indifferent- largely decided by whether you were a seller, a buyer, or a seller AND a buyer. Numerous discussions transpired over twelve months about housing shortages and affordability; yet at the end of the year, the Marshall Fire gave ‘housing crisis’ a whole new significance for Coloradans.

To gain perspective on housing inventory in Routt County, we can look back to the peak of the housing recession in July of 2010, when there were approximately 815 single-homes on the market and 600 multi-family. No significant new construction starts occurred from 2008-2015. When construction geared up in 2015, the residential inventory was 50% less than 2010. New-builds were mostly on land that had been purchased at distressed pricing, with final products delivered in Steamboat in the $1.5M range and the bulk of affordable homes built in Hayden. Roll forward six more years, and active inventory for all of Routt County in December 2021, – no matter what price, is a mere 38 single-family homes and 21 multi-family. This is the second year-running where active listings are more than 60% less than the year before. Home inventory for 11 out of 12 months of 2021 averaged about a two-month supply- except December, which dipped to just over one month’s supply; multi-family hovered around a month’s supply for ten months, and then in November/December succumbed to about a two-week supply. 2021 realized 387 sales of single-family and 596 multi-family units; the bulk of this transaction count occurred within the price range of $300,000-$599,000 for both homes & condos/townhomes, and a record number of 96 single-family and 28 multi-family sold for over $2M.The median sales price for a home in Routt County at year-end was $1.162M and $644,500 for condos/townhomes- up over 30% from last year. With the increase of property sales over $2M, the average price in the Yampa Valley is now at $1.528M for single-family and $814,000 for multi – also up almost 30%.

So, what does 2022 look like? Much of the same? Well, yes & no. We can expect that new listing activity will be similar to 2021 and as such, multiple offers will continue. While my crystal ball shattered in 2020, I would not foresee 30% increases in pricing for 2021 and suggest we might see some stabilization?  Interest rates will be climbing this year; sadly, who this affects the most is the first-time home buyer who is already having a hard time competing many markets. The interest rate increase affects their buying power as a 1% increase equates to 10% less in purchase price.  Second homeowners wanting to finance will also see increased fees around the end of first quarter as the Federal Housing Finance Agency (FHFA) announced that pricing for 2nd homes and High-balance loans will be increasing Loan Level Pricing Adjustments (LLPA’s) for loans purchased by Fannie Mae and Freddie Mac on/after April 1, 2022 (HousingWire). Buyers who may be looking to purchase a 2nd home or get a high-balance loan (loan amounts greater than $647,200 for 2022), would ideally want to close on their 2nd home or high-balance loan by the end of February or early March to hopefully avoid this pricing hit (since it usually takes 2-4 weeks to sell a loan to a servicer after closing- so this means it could take roughly 30 days before the loan is purchased by Fannie Mae/Freddie Mac).  The FHFA says it is taking this step to both strengthen the government-sponsored enterprises’ safety and soundness and ensure access to credit for first-time homebuyers and low- and moderate-income borrowers.  The impending interest rate increase may add more urgency in the first half of the year for some buyers and the new FHFA fees may add increased activity for first quarter for those looking to avoid them as well as obtain a lower interest rate.

While Steamboat had a slow start to winter weather, we are now at 138% snowpack compared to the 30-year average.  Development at the ski resort is underway as they set out to spend an unprecedented $180M to create an après ski plaza, new restaurants and bars, new lodging, a ski beach, and an ice rink. Cumbersome stairs have been removed and a covered escalator is installed – getting great raves as it transports skiers from the drop-off area to the base. New lifts and new terrain are part of the plan to make Steamboat the second largest resort in Colorado, with the future Wild Blue Gondola to be the longest gondola in North America.  A large, unanimous donation bequeathed to the Yampa Valley Housing Authority was directed so that the Authority could purchase two sites that will eventually provide more housing options for full-time residents down the road. These investments help to illustrate what a special place the Yampa Valley is and what will help keep its allure.

Note: December 2021 statistics & info provided via the Colorado Association of Realtors, ShowingTime, ReColorado