Steamboat Real Estate Home Search and Blog

Real estate prices in Steamboat have fallen 15-30% from the peak, leaving some Steamboat sellers in the unenviable position of either selling for less than they bought their property for two years ago or renting it out until the market returns.

If you own Steamboat real estate and want to sell, what makes more sense—renting it or selling it at a loss?

A recent Wall Street Journal article says sell and take the loss.  Here’s why:

During the Steamboat real estate boom of 2007-2008, rents were rising as fast as real estate prices.  That’s no longer true.  Rents are down, and landlords are discounting rents to get tenants.

Rental payments generally will not cover the mortgage, taxes, insurance, maintenance, repairs, and HOAs if you bought at the market peak.  It may be better to reduce the selling price and sell than continue to cover the negative cash flow for several years.

The other force working against sellers is distressed property prices.  In this market, buyers are looking for a “deal”.  Short sales, foreclosures, and very aggressive pricing are what is needed to entice a buyer to make an offer.  These sales are skewing prices downward, at least for the short term.

If you paid more than your property would sell for today, it’s very difficult to compete with sellers who have priced their homes more aggressively.

Now the good news…

If you own a home or condo with plenty of equity, it makes sense to ride out the downturn.  Buyer interest has picked up in the last two months, and many of the distressed properties are under contract.

I’m very confident the Steamboat market will rebound, it just won’t happen overnight.  The Steamboat real estate market has always returned stronger than before, and with many people wanting to call Steamboat home, that’s not going to change.

If you would like to discuss your options, including the possibility of a short sale, please contact us.