1st Quarter Statistics for La Plata County

La Plata County home sales had a robust first quarter with a 17.4 % increase in the number of homes sold, and a 9.2% increase in median price. In most areas of the County, the number of homes sold and median price increased. The anomaly in the statistics is in the Durango In-Town Homes. The statistics make it appear the market is sluggish, and the median price is virtually flat. Those are not the facts! The Durango In-Town market is strong, and it is a lack of inventory creating the illusion of nearly flat sales. The median prices for the neighborhoods serviced by Needham, Riverview and Park schools are up $40,100 in median price, which equates to a 13.1% increase. As of April 15, 2013, the inventory of homes in these neighborhoods is 67 homes and 29 of them are under-contract, which is a very low inventory of homes considering the market demand. The variance in the statistics is in the Three Springs area, near the hospital. The builders in Three Springs have been offering some
smaller homes, which drove the median price down $25,000. Overall, the rebound in the economy, and the continuance of low interest loans is sparking the housing market across the country. Land sales were robust, as buyers continued to take advantage of the lower values in the market place.  Commercial activity was also a bit stronger in the 1st quarter, with 7 sales versus 5 last year.

The Effects Of Supply & Demand On Our Local Real Estate Market

Several people have asked us lately about what type of market we are currently experiencing.  The answer is that it depends.  In La Plata County, we have several different situations in terms of the market type and those are determined by location and price point.

The way a market type is determined is by the amount of inventory.  If an area or price point has little inventory (less than 5 month supply) - you get a Seller's Market.  If there is a modest inventory (5-7 month supply) - a Balanced Market appears.  In areas or price points that have a large inventory (over 7 month supply) - a Buyer's Market is present.

For example, for Durango In-Town properties priced at or below $400,000 we are experiencing a Seller's Market.  With smaller inventory available in that location and price range, the Seller's are the ones who are dictating the terms of sales.

Consider Durango as the epicenter of our local market, and then picture concentric circles radiating out in 5-10 mile increments.  The further away from the center you go, the more inventory there is.  The market shifts as you move from the center outward from a Seller's Market to a Balanced Market to a Buyer's Market.

Likewise, the market tends to change in regards to price as well as inventory.  As the price points increase, the market changes from a Seller's Market in the lower price ranges to a Buyers' Market in the upper price ranges.

If we can offer any more explanation for you, please feel free to contact the office.

Thank  you.