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.