2021 A Superb Year for Real Estate

What. A. Year. One for the ages. 2021 was a banner year for real estate nationwide, but particularly in the Yampa Valley. In spite of the shortage of listings, sales in 2021 in Routt County shattered records. To put it into perspective, in 2019 through November there was a healthy $642M in sales volume in the County. Last year, through November, that figure ballooned to $952M. This year, to date, there has been nearly $1.33 billion in sales volume! While the number of transactions is up from last year (1,563 compared to 1,321), price appreciation is really what is driving the massive sales volume growth.

Values Continue to Rise

Single family homes in Routt County have gone up 25%, while values of condos and townhomes increased an eye-popping 38%. In Steamboat Springs, the numbers are even more stark with single family homes up 40%, while condos and townhomes have increased in value by 42%.

Predictions on Real Estate Bubble

Looking back on the past year, nobody could have foreseen such a market at the beginning of 2021. This past spring, Fannie Mae and Freddy Mac predicted that rising interest rates, low supply, and high demand could cause a slowdown in market activity. Shortly thereafter, pundits began predicting a real estate bubble to burst, except there has been no bubble. The arrows just kept trending upwards. Surging sales have been partly due to Routt County having been affected by both the Great Reshuffling (migration from metro areas into rural ones) as well as the Great Resignation (workers leaving jobs and not coming back).

In 2022, the outlook is likewise difficult to predict. Similar to last year, we’re still battling a nationwide pandemic. The Federal Reserve is indicating they will raise the federal funds rate (how much banks pay one another in interest to borrow funds on an overnight basis from the federal reserve) which could indirectly affect mortgage rates. Labor shortages are likely to persist. Housing demand will probably remain high, due to the incredible nature (pun intended) of the area in which we live. The big question is if there will be supply.

Thank You For Your Trust

But despite all of the unpredictability of the coming year, one thing remains certain for 2022: Colorado Group Realty will continue to deliver unprecedented service to our clients. For the second year in a row, you have voted CGR the top real estate company of Routt County in the annual Best of the Boat competition, and for that, we thank you.