How's The Market?
We haven’t seen a lot of springtime precipitation, but much of the county is wet. With near-recordbreaking snowfalls, the warm weather is melting the snowpack quite quickly, and with that will come increased river flows. The city and the county have resources available to help homeowners who are at increased flood risk, so please contact them with questions!
Springtime also means development and maintenance! In terms of development, there are a host of projects in various stages of the planning process which might break ground this summer, some of which include a couple of hotels on the east end, a multifamily development on Weiss Drive, The Amble up at the Mountain, a Housing Authority multifamily development mid-town, and several multifamily developments on the west-end of town. On the maintenance front, our hardworking snowplows took a toll on our roads this winter; maintenance and repair work will begin on May 15, and hopefully be wrapping up by the end of June.
As of May 11, 2023, Routt County has 79 active residential listings. That’s up from 76 this time last month, and down from this time last year (90). The number of currently pending listings (79) is up from this time last month (53), and also up from this time last year (66). Closed listings in April county-wide were down somewhat (49) compared to the month prior, March (59), and down compared to April of 2022 (86).
Median days on market remains aggressive at about 16 days in March 2023, compared with 14 days in April 2023. Average price-per-square foot is up slightly compared to last month at $690/psf across all property types in city limits, and is up from $623/psf in April 2022. The average closed price ratio rebounded, rising from 96.9% in March to 98.9% in April.
According to data released by Freddie Mac on May 11, the interest rate for the 30-year fixed rate mortgage fell for the second week in a row, ending the week of May 11 at an average of 6.35%. Core inflation rose by 4.9% in April year-over-year, marking the lowest level in two years, and slowing for the 10th consecutive month. You might be asking: “Is now a good time to buy or sell a home for me?”
Contact one of our experienced agents at The Group to help you understand the answer.
Short-Term Rentals: The Debate Goes On
In 2021, the Northwest Colorado Council of Governments issued the Mountain Migration Report to identify trends and assess needs within the mountain communities of Eagle, Grand, Pitkin, Routt, San Miguel and Summit Counties. In partnership with the Colorado Association of Ski Towns, the study focused on major areas of concern including workforce retention, affordable housing and rental stock. Each community is facing similar struggles and one heated common topic is short-term rentals.
Since the outbreak of COVID-19, property values in mountain towns have increased by an average of 40%, and many of the homes are not primary residences. As the argument goes, local workforces are being priced out of their local housing market and struggle to find an affordable place to stay. Across the board rents have increased 20-40%, and the availability of homes for rent or purchase have dwindled. Many ski areas house workers in converted hotel rooms to provide workforce housing.
Investors, many of whom reside in urban areas, saw the attraction of purchasing property in mountain towns to be used part of the year for personal use, with the ability to generate revenues the rest of the year. As a result, communities such as Summit reported neighborhoods lying empty for large chunks of time. As more people chose to vacation in rural settings, the short-term rental market exploded.
In the 2021 and 2022 November elections, local ballots in many mountain communities included proposals for new rules and tax increases on short-term rentals, often proving contentious. Telluride made local headlines when it tried to cap short-term rental licenses at 400 from 790, a motion that failed. Crested Butte tried to pass a $2,500 annual fee on homes not being occupied half the year by owners or locals, which also failed.
Almost all Colorado ski towns have enforced nightly rental regulations. Steamboat Springs initiated a short-term rental zoning map, with some areas off limits to short-term licenses. Property owners had until April 30, 2023, to obtain a license. On November 8, 2022, city residents in Steamboat voted overwhelmingly in favor of Ballot 2A, to implement an additional 9% tax on short-term rentals, which will sunset in 20 years. It took the total tax on short term rentals to 20.4% but does not apply to other lodging outlets such as hotels.
Crested Butte increased lodging taxes on short-term rental units by 2.5% to help pay for affordable housing. The town collects a 7.5% excise tax on short-term rentals, which is part of a 20.9% total tax on lodging. Short-term licenses in town are also capped. Aspen, Carbondale, Dillon, Silverthorne, Frisco, Avon, Winter Park, and Telluride all enforce a higher tax on properties in the short-term rental pool.
Summit County implemented a 2% tax on short-term lodging properties, applicable to all lodging stays of less than 30 days. In a bid to create more housing for the local workforce and fill empty neighborhoods, the county recently engaged in a lease-to-locals’ program. Owners of short-term rental homes can earn up to $24,000 by switching to year-long leases. The same model is being used in other tourist-driven locales including Truckee, CA, Ketchum, ID and South Lake Tahoe, CA.
As mountain towns continue to wrestle with housing shortages, property management firms and second homeowners fight initiatives such as commercial property tax rates for second homes in rental pools. They argue homes might stay vacant altogether, which will impact tourism, an industry all mountain towns currently rely upon.
Unless local economies significantly diversify, without tourists, jobs will dwindle; but without housing for locals, there will not be a workforce. Striking a balance is key to a sustainable future for all mountain towns.
Bear Creek Village Gets the Green Light
Boulder-based investment firm, Crossbeam Capital, had reason to celebrate last month. Steamboat Springs City Council unanimously voted in favor of their proposed housing development Bear Creek Village, which will further alleviate the current housing shortage.
Crossbeam Capital’s proposal includes 55 units within a 13 row-style building development on the west side of downtown Steamboat, between the Routt County Combined Law Enforcement Facility and Whitehaven Mobile Home Park. Seventeen units will be deed-restricted workforce housing and comprise of studios, handicap accessible studios, one-and two-bedroom units.
The project was presented to the planning commission on April 23, 2023 by Walter Magill of Steamboat-based Four Points Surveying and Engineering. Aside from several concerns regarding parking and snow removal, the commission voted in favor 5-1. “We look at it as options for families, students, employees and others who want to live close to the Yampa River Core Trail, public transit, and downtown,” Magill said.
The property is zoned for commercial development, which allows multi-family housing with a conditional use permit. Crossbeam Capital has a proven record with similar developments, including a recent one in Edwards, Colorado. Using modular building techniques, they started building 120 units in 2019, which were sold in 2020. The company specializes in sourcing locations where demand is high, but supply is what they deem “artificially constrained.”
In a statement to the Steamboat Pilot, City Council member Michael Buccino said the housing project would benefit the “middle part” of Steamboat and those who live in town and are tired of living with roommates. A recent study shared by the Yampa Valley Housing Authority identified a current need for 1400 homes.
Crossbeam Capital’s proposal would enable a faster turnaround than other current developments, due to their financing and construction model. “I’m fully supportive of this project,” Buccino continued. “I think this is fantastic. We’ve needed this small scale.”
The two-bedroom units are listed at 950 sq ft, while on the smaller side, some of the studio apartments will be 332 sq ft.
Renderings by project architects [AU]Workshop Architects + Urbanists
2 Sides To Your Next Property Tax Bill
We have some good news, and we have some inevitable news.
First, the good news:
At an average rate of 0.51 percent, Colorado boasts the third-lowest property tax rate in the country, behind only Hawaii (0.28) and Alabama (0.41). Locally, average rates for Larimer County (0.65) and Weld County (0.64) are slightly higher, but still well below the national average of 0.99 percent.
Now, the inevitable news:
When the next property valuation notices reach your mailbox in early May, the value on your home—and the tax bill that will follow in January—is bound to increase sharply. That’s because local county assessors are required to re-set values every two years. And the recent surge in property values that occurred during the state’s 2021-22 real estate frenzy will be reflected in the new assessment (based on June 30, 2022 values). Spikes in valuation will vary by local housing conditions, but estimates for the statewide average increase in valuation run between 25 percent and 35%.
Translated into dollars and cents, if you paid $3,000 on previous property taxes, you might see your bill increase by an additional $1,000 a year.
But that’s not the end of the story. There is a limited window for property owners to appeal their new valuation. Visit the Routt County Assessor at www.co.routt.co.us to find details about submitting an appeal on your valuation notice.
Summer in Steamboat, The Local Way
As the snow melts in Steamboat Springs, spring bulbs start to pop up from the ground, neighbors throw open their doors and across downtown, bikes outnumber cars. While we love our winters, most of us relish the summer just as much. It’s a time to reconnect with each other and make the most of the ever-growing line up of events on offer.
MainStreet Farmers Market
Food trucks, artisans and local food producers gather on Yampa Street between Fifth and Eighth streets every Saturday from 9 a.m.-2 p.m., to provide a smorgasbord of offerings to shoppers. Over 135 vendors gather weekly from June 10 – September 23 to sell their wares in a carnival-like atmosphere, bustling with locals, visitors and live musicians.
Strings Music Festival
Now in it’s 49th year, Strings has been a summer staple for almost half a century. Based at their 569-seat pavilion, this year’s impressive lineup includes legendary Rock and Roll and Songwriters Hall of Fame star Graham Nash, comedian David Sedaris and three-time Grammy winners, the Nitty Gritty Dirt Band. Over 60% of Strings events are free to the community including Music on the Green, every Wednesday from 10-10:45 a.m., at the Yampa Valley Botanic Park. This year marks the 25th anniversary of the partnership between the festival and the park. A free celebration is planned for August 23, from 5-7 p.m., with food trucks and live music by Jay Roemer.
Steamboat Pro Rodeo Series
Steamboat was known as a cow town before it became an international ski resort. We’ve been celebrating our western heritage for over 100 years at the Steamboat Pro Rodeo. Every Friday and Saturday from late June 23 to August 26, (plus July 3 and 4), the Brent Romick Rodeo Arena hosts an iconic display of saddle bronc riding, steer wrestling, bull riding, barrel racing, team roping, and a ram scramble for the younger participants.
First Friday Artwalk
Meet local artists and view the latest exhibits at galleries across town on the first Friday of every month. An eclectic mix of venues stay open from 5-8 p.m. and serve complimentary refreshments and some have live music. Pick up an Artwalk map of participating locations and look out for pop-up venues along the way.
Concerts
Steamboat earned its place as a Colorado Creative District for good reason. Opera Steamboat will perform two operas this summer, “Gianni Schicchi” and “Proving Up” at the Julie Harris Theater. The theater is part of Perry-Mansfield, the oldest continuously running performing arts and equestrian camp in North America. Local group, Piknik Theater is showcasing “Peter Pan” and a new musical “The Scouts” at the Yampa River Botanic Park. The Colorado New Play Festival will take to the stage at the Strings Music Pavilion on June 16-17. For a more raucous affair, head to Howelsen Hill for a free concert at one of Steamboat’s most iconic settings. A full line-up can be found at www.keepinitfree.com
Rodeo Photo by Jace Romick