This
week, Colorado Association of Realtors and Durango Area Association of Realtors
have released the first quarter real estate statistics, and we definitely have
some things to discuss! In a nutshell, the number of properties sold in
the State of Colorado and in our local area have dropped in the first quarter
compared to last year, but the median price is up for the State and for most of
the areas in La Plata County.
Let’s
look at the bigger picture first, with the combined numbers for the entire
state. Homes sold in Colorado for the first quarter 2014 were -.5% versus
2013, but the median price for the State was +4.4%. For single family
homes, the number of sales were down 4.4% and median price was up 5.8%.
Since 2011, the median price on single family homes has been increasing for
Colorado, and the median price is now $253,925 compared to $218,500 back in
2011. Foreclosures and bank owned properties are now only 8.6% of the
market, down from almost 40% in the first quarter 2011, and approximately 20%
of the market in the first quarter last year. This shows the market is
becoming healthier.
La
Plata County home sales show a significant decline in the first quarter of 2014
versus the same quarter last year. The two months affecting those
declines were January and February, while March posted the same number of sales
as last year. In La Plata County, total home sales were down 12.2%, and
the median price dropped slightly by -.6%. In the entire Durango Market
(All Durango Residential), the sales were down 19.7%, but the median price
increased from $318,860 last year to $338,037 this year, + 6.0%. The
Bayfield Market (Both In-Town & Rural) were up 10 home sales and the median
price was virtually unchanged from $245,250 last year and $245,000 this year.
During
the first quarter of 2014, we have heard continually about the lack of
inventory of homes on the market, and that is particularly true for In-Town
Durango homes, and for a number of neighborhoods close to Durango. This
is definitely impacting the price of homes, and the median price In-Town
Durango is up 10.6%. This lack of inventory is perhaps some explanation
for the lower sales numbers.
Other
reasons for the decline in home sales for January and February is the impact of
interest rates increasing last year, and the government shutdown last fall,
which slowed the closing during the first months of this year.
Regardless,
the rationale, home sales have declined in the first quarter, but they appear
to be stabilizing with last year. Home sales are exactly the same for La
Plata County residential in March this year versus last year. The other
thing to consider is we are comparing to a quarter last year that was up in
number of sales over the prior year by 17.4%, so they were tough numbers to
match. Last, we have looked at the actual sales for the first half of
April 2014 and the pending contracts, and it appears to be comparable with April
& May of last year. We think we are matching closely to 2013 for
residential sales from March forward.
It
is very important to understand the market forces that affect the
individual segments of the market. We have a shortage of residential
inventory in many neighborhoods and price ranges, and an abundance of inventory
in others. It would be wise to contact your Realtor for input on your
market segment, and you may also want assistance with market pricing in this
rapidly changing real estate environment.
Sources: Colorado
Association of Realtors Housing Report, Durango
Area Association of Realtors, Colorado
Real Estate Network
Below is an additional article concerning the Real Estate market that was published in The Durango Herald this morning:
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