Monday, April 21, 2014

First Quarter Real Estate Statistics



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:

No comments: