Perfect Storm of Opportunity for Buyers

I attended a very interesting program put on by Wells Fargo Bank on May 20, 2010, that featured a national real estate expert, Brian Buffini.

Some of the information presented in this program echoed the predictions I have been making for the last few months. Of particular interest and as coined by Brian Buffini in the Wells Fargo presentation, there is a "Perfect Storm of Opportunity" for buyers in effect right now. In particular:

* Prices are down, and

* Mortgage rates are low.

A like scenario has not occurred in the last 30 years. Although in the last 30 years, we have seen periods of low interest rates, we have not seen low prices at the same time.

And, as I've also been emphasizing: inventories of property to select from, at least in La Plata County, Colorado, are at historic highs.

Finally, and as I blogged in March of this year, there is a buzz in some quarters that there is a national housing shortage ahead. As I indicated in March, with todays still depressed real estate market in Durango, it is hard to fathom a different future. However, there are experts, including Buffini, who are predicting a severe housing shortage nationally that will begin in the next 18 months and continue for a decade. The Harvard University's Joint Center for Housing Studies is making a similar prediction based on these factors:

1. Gen-Y-er's (those born roughly between mid 1970s and early 2000s) are approximately 81 million strong. They believe in home ownership and there are millions more of them than the Baby Boomers.

2. According to the National Association of Realtors (NAR), 47% of home buyers in 2009 were first-time buyers and NAR predicts that in 2010, first-time buyers will represent 52% of all home sales. Thus, Gen-Y-er's housing impact has only just begun.

3. According to the Harvard University's Joint Center for Housing Studies report, anticipated household growth during the next 10 years will range between 12.5 million and 14.8 million. All those new households mean demand for many new housing units.

In conclusion, for all of the above reasons, I continue to emphasize to anyone interested in the Durango market: Now is the perfect time to consider buying! Don't hesitate to contact me if you have any questions about investing part of your future in Durango, Colorado.


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 Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
CDPE, Certified Distressed Property Expert
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.