The below charts give an excellent overall representation of
the real estate market in La Plata County. The chart from Allen &
Associates shows the total active listings per quarter from 2008 to 2014. As
the arrow indicates, listing numbers have followed a downward trend over the
last 6 years. Although the market has peaks and valleys, the steady trend for
active listings has gone down year over year.
Several conclusions may be made in light of this trend.
First, lower inventory tends to cultivate a seller’s market. As a result,
median home prices may rise as the cycle of supply and demand produces more
demand than supply. In these circumstances, sellers tend to have more
control—they may set prices and maintain stronger negotiations. From a buyer’s
perspective, this creates a sense of urgency, as the lower inventory encourages
higher prices. Consequently, a buyer may consider quicker decisions as the
inventory is lower.
The graph also nicely benchmarks the market’s
changes since the recession. The highest number of inventory occurred in
summer/fall 2010, and currently January 2014 reflects the lowest number. This
is great news for the activity levels of the market!
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