Turn of Market Expected in March and April

This week we have received the total residential sales numbers in La Plata County through February, as noted on the chart. These numbers indicate declines in the first two months compared to last year. As noted in previous blogs, this could be due to the economic environment and government shutdown in November. Many of these closings reference properties under contract in previous months. Additionally, the winter months tend to be slower than other times in the year. 

Typically, January and February do not dictate the state of the market for the course of the year. Generally we have a better gauge once we are through March and April, as they are better representations of an annual market. As it stands now, we are currently seeing stronger activity in the marketplace. This activity should come to fruition and create more sales in the next couple of months.

As of March 5, there are 114 residential properties under contract in La Plata County.  Most of these contracts are likely scheduled for closing in March & April, and of course, some will fall out, but we will also continue to have new contracts for April. Compared to 2013’s totals of 140 sales in March & April, we have reason to believe 2014’s results for these months will be stronger than last year. While we acknowledge not all of these properties will close in the next two months, the excellent momentum creates excitement for what is ahead.

As a result of these numbers, we make a few educated predictions:

1)   Median sales price should recover in March and April. Although the current median reflects a lower number than 2013, the shortage of inventory in and around Durango should drive the median price up for homes in the more affordable price ranges.

2)   Residential sales should increase in March and April. As noted, the high activity levels and number of properties under contract lend strong case to an increase in residential sales.

We are about to enter the spring selling season. As much of the country recovers from extreme weather conditions this winter, we are confident that the spring and summer season will yield high activity levels and transactions.