The times are changing! January and February residential transactions were very low, while the inventory level on the market remains at nearly all time highs. For example, 43 homes have been reported sold in the MLS system for the two month period in La Plata County, and there are 982 homes on the market. This demonstrates the polar differences between supply and demand.
Of course, if you are buying, this is great news, and it is being reflected in tougher negotiations and significant price reductions. For example, Copperhead Camp homes in Edgemont Highlands have announced a price reduction on eleven of their homes ranging from a savings of $60,000 to $130,000. These homes are now priced from $299,900 to $549,900. If you have any interest in these homes, or other deeply discounted deals in the Durango area, please let me know.
If you are selling, this information shows the challenge. The questions to ask yourselves are:
1) Is my property priced aggressively in this market?
2) Am I making the most of any showing? Does it show well? Is it clean, and have the minor painting and updating projects been completed?
3) Am I being flexible in allowing showings per the buyers request?
4) How is the curb appeal, does a buyer want to come in?
In many cases, sellers are able to negotiate deeper if they are able to make it up on the next home, and if prices continue to decline, it is better to reduce the price early and get the home sold, rather than “riding” the market down.
We will survive this market adjustment. The stimulus plan combined with the low interest rates and the first time homebuyer credit offer buyers a great opportunity to buy, and it may give us the traction we need to get this market moving.
If you have any questions, please do not hesitate to call me. You can reach me, Don Ricedorff, at The Wells Group 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com. Don Ricedorff is a licensed real estate broker in the State of Colorado, with 16 years of experience, and he resides in Durango Colorado.
He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients. The designations include:
CRS, Certified Residential SpecialistCRB, Certified Residential BrokerCCIM,
Certified Commercial Investment Member
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES, Senior Real Estate Specialist
He is also an active volunteer in the community and his church. His highest aspiration is spending time with his wife, Janet, and his three children Kelly, Katie, and Kyle. His other interests include playing tennis, fly fishing, hiking, boating, and water skiing.
Tuesday, March 10, 2009
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