 Since the mid-90’s, the average sales price and real estate activity have been steadily climbing, and in the 1990’s the value of real estate rose 156%. In 2000, there was a record peak in dollars and sales volume, only to be topped by the markets in 2004, 2005, and presumably, 2006. The yearly sales volume is expected to cross the 1 billion mark for the first time in 2006. Many feel that the fundamentals are in place for an extended run our real estate market. Factors that support this belief include a limited quantity of future building lots, anti-growth sentiment, better airline access and airport expansion, comparative value of Steamboat property, development of higher-end projects, redevelopment projects at the mountain village, and most importantly the wealth effect of the baby boom generation. The latter factor of the baby boom generation is probably having the largest affect on our market. With the knowledge that their real estate investments far outpaced their stock market portfolios, many in the baby boom generation are, or planning to, purchase second and vacation properties. In the last ten years, the population of Steamboat Springs has remained relatively stable, (mostly attributed to growth of outlying towns) yet the percentage of the baby boom age group grew by 240%. Considering the fact that the baby boom generation is still in their peak earning years and have just begun to retire, their potential affect on the Steamboat market is quite considerable. Please feel free to review my newsletters that give regular updates on the market trends, statistics, and Steamboat happenings. They can be found on the Newsletter Page, where you will also find an option to be added to my regular distribution list. |