Thursday, January 16, 2014

2013 in Review: Sales Up, Market Times Decreased



This chart reflects the La Plata County Residential Sales for the past several years. 2013 saw a higher average sales price than 2012 (approximately 6.5% growth year over year), as well as a higher median price (approximately a 3.5% growth year over year). Average days on the market and median days on the market both decreased from 2012 to 2013. This indicates faster inventory turnover, as well as the trajectory towards a seller’s market.
The highest number of residential sales since 2008 demonstrates the strength of the market as well as the increased consumer confidence. In fact, throughout 2013, every month except November had the highest number of sales since 2008 (this low month may reflect the government shutdown in October). 


Overall, we notice the market dynamic shifting towards a seller’s market. The inventory is less, strengthening the seller’s position to maintain price values. Buyers may want to consider real estate decisions in the near future, as interest rates are expected to rise 1% over the next year. As a general rule, this mere percentage increase impacts home affordability by 10%. For every percent interest increase, an individual’s buying power decreases 10%. Sellers may anticipate the demand for homes and properties, and buyers will want to consider their decision-making timeline.
While this chart is helpful, it gives a general overview of La Plata County. Our local marketplace contains such a mixture of properties—rural, residential, Durango, Bayfield, etc. These trends reflect the residential numbers of the county; however, specific market segments may fall outside of these generalities. We would love to assist should you like aid in determining whether your property is positioned for a buyer’s or seller’s market.

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