The Wells Group hosted the 13th Annual Real Estate
Forecast on Wednesday of this week. The forecast presentation, led by
local appraiser Bob Allen and Wells Group owners Jim Wotkyns and John Wells,
summarized key market conditions in La Plata county and predictions for
the local real estate market for the 2013 year. All of the forecast
information is based on numerous statistical studies done by Mr. Allen and such
statistics were analyzed during Wednesday's program.
To recap the Forecast
presentation, the news is mostly all positive:
*Population and household growth are "up" in La
Plata county which continues to drive demand for housing.
*Tourism has held steady despite of some unfortunate events
such as the Mesa Verde fire in 2012.
*National negative housing news has dissipated and national
housing media attention is almost entirely positive.
*An over supply of inventory has decreased.
*Mortgage rates continue at historic lows.
*Investors and 2nd home buyers are coming back to the
market.
*Foreclosure filings and sales have declined.
*The real estate markets in "feeder" areas to
Durango, i.e. Phoenix, Denver, California and Texas, have improved, allowing
Sellers in those markets to sell and transition as buyers to
Durango.
*New inventory is going to be available in Edgemont, Three
Springs and the Twin Buttes area.
Additional
positive business indicators for the La Plata County area were highlighted,
including that air transportation has doubled in the last decade allowing
easier access to Durango; Mercy Regional Medical Center continues to be an
outstanding provider of medical services to the entire region; Fort Lewis
College brings a vibrant college population and also generates school related
visits to the Durango area continually throughout each year; Mercury Payment
System, a large national company, headquarters in Durango and is investing in
new corporate offices near the Durango Mall; and the City of Durango will soon
be upgrading the entire business
district with high speed internet access.
However, there were some
negatives in the Forecast, including:
*Natural gas prices have been persistently low which impacts
the local energy industry which is major economic player in this market.
*Private construction remains low.
*Credit conditions remain challenging.
*The decreasing inventory is a potential problem in some
parts of the market in order to meet demand.
*Appraisals may become challenging as sales and pricing
improve but existing comparables are scarce.
Mr. Wells concluded the program with his predictions for the
2013 year which included the predictions that real estate sales will continue
to increase and that real estate appreciation will be 5-7% overall.
The full 2013 Forecast presentation is available for your
review on the Wells Group website: wellsgroupdurango.com
A password is required so if you are interested please give
our office a call and we will give you the password.
Don Ricedorff, Broker Associate, GRI, CRS, CCIM, ABR, RSPS, CDPE
Direct: 970-375-7014
Fax: 970-259-5007
