Eliese Pivarnik, Colorado Group Realty, RSPS, CDPE Steamboat Real Estate

Average prices for Steamboat real estate are up in 2008, but your home or condo is (most likely) not worth more. Real estate sales have slowed this year as people take a wait-and-see attitude about the economy, and prices in many areas are being reduced to attract buyers.

Statistics work best when there is a lot of data, and the number of real estate sales this year is at a 5+ year low. So there are fewer sales used to calculate the average price.

The sales that are being used are high-priced homes, ranches, and land that skew the aAverage price up. You can see from the graph that 54% of sales in 2008 are over $1,000,000. Fifteen sales are over $3,000,000.

When you add up all the sale prices and divide by the number of sales, the average price will be higher based on the data.

It doesn’t mean that Steamboat real estate has defied the national market conditions and prices are still rising. Prices will rise again, but it isn’t happening this year.

Visit SteamboatHomeSales.com for more Steamboat Springs real estate information.

The YTD average price of a single family home in Steamboat Springs is $1,002,983.00, according to information supplied by Bruce Carta of Land Title.

Other resort markets in Colorado had average prices of:

• $5,159,207 in Pitkin County/Aspen and Snowmass
• $1,595,430 in Eagle County/Vail and Beaver Creek,
• $828,748 in Summit County/Breckenridge, Copper Mtn and Frisco.

Total sales volume this year is $647,000,000, which is way down from previous years. All of the Colorado resort markets–and the rest of the country–have seen a big slow down in real estate sales.

Routt County has seen the biggest drop in average prices among the resort markets. I’ve been trying to figure out why, but my initial thoughts are based on two reasons:

Last year was the year Intrawest purchased the Steamboat Ski Area. Not only was there some high priced real estate changing hands like Ski Time Square and the Sheraton, but people were buying based on what Intrawest has done at other resorts and what real estate values have done in Intrawest owned resorts. The Steamboat Springs real estate market literally went from the best year ever (2007) to the worst year ever (2008).

I think another reason why prices have dropped in Routt County while rising in other Colorado resort markets is the lack of high priced new construction in Steamboat that has closed. Summit County/Vail and Beaver Creek got started earlier and has seen projects like the Arrabelle close this year for prices in the $3000/sq ft range.

Routt County will start to close on the 63 sold units at Trailhead Lodge in June. Next fall, the almost-sold-out One Steamboat Place will begin to close on their multi-million dollar units.

My guess (without the advantage of a crystal ball) is that Routt County numbers will look good next year compared to other resorts. In the mean time, it’s a good time to start looking to buy as we wait for this down market to shake out.

I write the Steamboat Real Estate Week in Review to give buyers and sellers of Steamboat real estate real numbers they can use when making offers, evaluating prices, and listing their homes.

It's a starting point for those looking to purchase a house in Steamboat or determine trends for the house you own.

Statistics like days on market and list-to-sold ratios are guidelines, or pieces of the valuation puzzle. The stats are the “big picture” which is made up of dozens of smaller Steamboat micromarkets.

For example, I don’t list the Days on Market anymore because we’ve seen a whole lot of listings on the MLS appear as “withdrawn” one day and “new listing” the next. The real estate hasn’t changed; the days on market, however, changed from 175 to 1. Unless your Realtor is aware of the Steamboat inventory, it is easy to think the property was just listed when it’s been on the market for a year.

List-to-Sold ratios are another number that has to be looked at in the context of your micromarket. If you are looking at Steamboat ski condos with 2 bedrooms between $500,000-$750,000, the list-to-sold ratio will be different than someone looking at a brand-new 3 bedroom home under $350,000 in Hayden, Colorado. The condo example has 24 active listings and four pending listings. There are only 2 active listings—and one pending—with the Hayden example.

So if you’re looking for a two-bedroom ski condo, you can take your time and look around. But if you are looking in Hayden, you need to act quickly if a home comes on the market.

It’s important to narrow down your search as you determine what you and your family need and want. What areas do you like? What price range can you afford? What lifestyle do you have? Once you and your Realtor (let me know if you need one) have narrowed down the specifics, then you can use the statistics in your micromarket to make an offer.

Ready to get started?

The first step is to call or email me so we can talk about your situation (hobbies, family, bedrooms, garage, location—on the mountain, ski-in, ski-out, bordering public land, fishing access,etc., pets, price range, etc.). You’ll start to receive updates every time a house, condo, or townhome that fits your criteria comes on the market. You’ll also receive price reductions. You’ll start to see what is available, how often price reductions are occurring, and what units have been renovated.

You will become an expert in your micromarket. Working together, we can structure an offer, negotiate details, and find you Steamboat real estate you’ll enjoy for years to come.

Be sure to visit SteamboatHomeSales.com for the latest Steamboat Real Estate Week in Review or subscribe here to receive the latest posts by email.

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Just last summer, you could write an offer and leave out the financing contingency even if you expected to get a loan. You sat across from a mortgage broker who said, “You need $10,000 a month in income to qualify for this loan. What do you make?” Even those who earned less could say, “$10,000″ and get approved without having to verify their income or assets.

Times have changed.

If you want to finance Steamboat real estate, here are some tips before you start to look around.

• Visit a lender before you start to look at properties. You can find out what you can qualify for and get a pre-qualification letter which can be an important part of your offer.
• Allow time to get the loan-usually 30-45 days. Ask your lender how long they will need to process and fund your loan and choose your closing date after that.
• Include loan and appraisal contingencies in your offer. Be sure to amend the dates if issues arise, otherwise you risk your earnest money.
• Buyers need credit scores above 720 or 750. You’ll also need to verify employment with W-2s or tax returns, verify your closing funds and reserve funds. (Down payment, etc.)
• Some lenders are requiring more than one appraisal, so leave enough time before the appraisal deadline.
• Expect to provide additional documentation up to the last minute until all the pre-funding conditions are met. Don’t take it personally when they ask you to provide more information.
• Work with a Steamboat lender. Steamboat has great mortgage brokers and local bankers who can guide you through the loan process. Call me for a referral.

Call me at (970) 819-6372 for more information on buying property in Steamboat Springs or Routt County. I will guide you through the process of finding the right place at the best price to taking the extra steps to make sure it closes.

Also, don't forget to visit the Steamboat Springs real estate blog for more Steamboat real estate news.