How Is The Market Today?

This is the question most often posed to me, so today, let’s look at the newest information. 

Criteria:

Residential

La Plata County

Source: Colorado Real Estate Network (MLS)

Dates:

May 30, 2012 thru May 30, 2013                 Calendar Year 2012

Homes Sold: 902                                           Homes Sold: 834

Median Price: $310,000                                Median Price: $299,450

The number of homes sold is up 8.2% and the median price is up 3.5%.

If we compare this quarter (with a couple of days left in it) to the 2nd quarter of last year, it is much bigger difference.  The second quarter last year was the very bottom of the market for our La Plata County residential prices, and this year prices are significantly higher.

Dates:

March 1, 2013 thru May 30, 2013                               March 1, 2012 thru May 31, 2012

Homes Sold: 223                                                          Homes Sold: 180

Median Price: $327,500                                               Median Price: $279,625

The number of homes sold is up 23.9% and the median price is up 17.1%!

As a reminder, the prices are dependent on location, the number of homes on the market, and the price range.  It is still a buyers market in some market areas and in the higher price ranges of properties.

The other information that may be interesting to compare is the percentage of the market for residential, commercial and land.  This excludes leases and commercial land sales will show in the numbers for land.

Dates: May 30, 2012 thru May 30, 2013

Commercial:       27 Properties Sold        2.4%

Land:                  181 Parcels Sold           16.3%

Residential:        902 Homes Sold            81.3%

Total:                     1,110 Properties Sold

Wishing You A Very Happy Memorial Day Weekend

We are looking forward to the kick-off to summer with Memorial Day Weekend.  Traditionally this has been a weekend with lots of out of town visitors to Durango and the surrounding areas and much fun can be expected as residents and visitors alike enjoy all manner of festivities.  I’ve tried to summarize just a few of those events below.  For our real estate market the many tourists in town may not necessarily mean an increase in real estate activity over the weekend as most folks are here to sample all the amenities our wonderful area has to offer.  However, what we have historically seen is that the ripple effect of all these visitors will be felt in real estate in the coming months, as people reflect on their positive impressions of Durango and the natural wonders and beauty they experienced.  For many, the wheels start turning after they go back home and begin dreaming of how to make a move to this area possible.  Their calls about real estate will begin to trickle in, and we will welcome them back to town to schedule viewings of properties that are of interest as the months go by!

Something For Everyone

Memorial Day Weekend In Durango Colorado!

This is one of the greatest weekends of the year in Durango.  For those most familiar with Memorial Day weekend here, we look forward to the festivities of one of the premier bike races in the United States, the Iron Horse Bicycle Classic.  The race is a 50 mile bicycle ride to Silverton, while racing against time and the Durango Silverton train.  It has been held annually since 1972.

This year 2,500 riders will compete for the ride to Silverton, and another 500 will ride to Durango Mountain Resort, called the Quarter Horse.

The race begins at 7:00 a.m. in Durango.  In past years, we have attended the finish of the race in Silverton.  This means an early morning, being over the passes before they close, a wonderful breakfast in Silverton, and in a little over two hours from the beginning, the professional riders will begin arriving!!  Of course, they will arrive way before the train.  Whether you cheer on the riders before they go, along the way, or when they arrive, you will love the excitement and fun.

On Sunday, the mountain bike race and the criterium will be held in Durango, again beginning at 7:00.

In addition to the great fun with the races, there are numerous other activities.  The Animas River offers rafting and kayaking, with the river running wild!  Perhaps a leisurely walk along the Animas River Trail is more fitting for you, if you have sampled the food from one of the many restaurant choices.

This weekend is also recognized as the beginning of the summer in the high country.  Some of the lower elevation four wheel drive roads may be open.  Camping and hiking are definitely possible in the various terrain available in the 2,000,000 acre San Juan National Forest.

The Sky Ute Casino & Resort would be a great choice.  We recently had the opportunity to a dining experience in their new steak house, Seven Rivers Restaurant, and it is terrific.

Mesa Verde is celebrating the opening of their new visitor center, which would offer another special day in the area.

If you are in Durango, I hope you take time to enjoy a few of my favorite restaurants:

Breakfast: Durango Diner, CJ’s Diner, Oscars & Durango Doughworks

Lunch: The Palace, Olde Tymers, Carvers

Dinner: Ken & Sues, Red Snapper, Seasons, Cosmopolitan, Mahogany Grill

Regardless of your plans, we wish you a wonderful, exciting and safe Memorial Day Weekend.

Representing Your Properties With Complete Marketing Coverage

As the summer season rapidly approaches, activity in our local Real Estate market is heating up as well. 

We pride ourselves in representing your properties with the best marketing possible to reach potential buyers wherever they may be.

One important vehicles in our marketing approach is our website at www.DurangoRealProperty.com.  We constantly focus on our search engine optimization to ensure that buyers get the information they need.  A recent look at Google Analytics over the last 30 days has shown that we've had 2419 visits from 1520 unique visitors.  By coupling that with the success of www.WellsGroupDurango.com and our increased social media presence - we feel our online presence is 2nd to none.

In addition to a strong web presence, we know that in our unique market, print advertising is equally as important.  We have a commitment with the Durango Herald for full page ads bi-weekly, and A-Section advertising on the off weeks of the full page ads.

We will continue to implement the best possible marketing of your property to connect with buyers and facilitate a sale.

Thank you for choosing us to represent your Real Estate interests.

Correct Mold Issues For Health ... Of Your Home.

This week we want to flag for you an inspection issue that can be completely avoided just by looking ahead.   Over the years we have found that the word "Mold" can have one of the most negative impacts on negotiating inspection resolutions between buyers and sellers.  It is the most likely inspection problem that will cause a buyer to terminate the contract and further, lenders become very skittish unless the repair and remediation of mold is handled very carefully.   However, truly in this area, we find that most mold issues are not really the serious kind of mold that can lead to health and safety issues.  But once the word is introduced in the inspection process, many buyers have a difficult time overcoming the negative connotation.

Most often, if an Owner monitors their home over time by periodically checking crawl spaces for standing water or mildew and dealing with such issues as they appear, genuine mold issues never arise.  We believe it is in any owners best interest to do regular spot checks on the underpinnings (or in attic areas) of their home as the usual cause of mold is moisture retention which can cause structural integrity and/or decomposition problems.   Those kinds of problems can be far more serious to correct than the actual mold.

You already know our thoughts on pre-inspection: we think it is a great idea for all Sellers to consider doing a pre-inspection before marketing their home.  Let me give you a recent example of a Seller who decided not to do a pre-inspection.  The Seller negotiated what they believed to be a fair price for their home and entered into the contract for sale.  During the inspection period, the Buyer's inspector flagged a mold and moisture issue which had caused structural problems under the home.  The Buyer provided to the Seller a bid from a "certified" mold specialist for remediation at a cost of nearly $20,000.00.   Had the Seller known of this problem they would have dealt with it before marketing their home, most likely at a much reduced cost to them, and they would have built this cost into what they believed was the best price for their home.  This story had a happy ending as we were able to help this Seller find less costly mold remediation solutions that were acceptable to the Buyer and to the Buyer's lender and the Buyer did not terminate the contract.

1st Quarter Statistics for La Plata County

La Plata County home sales had a robust first quarter with a 17.4 % increase in the number of homes sold, and a 9.2% increase in median price. In most areas of the County, the number of homes sold and median price increased. The anomaly in the statistics is in the Durango In-Town Homes. The statistics make it appear the market is sluggish, and the median price is virtually flat. Those are not the facts! The Durango In-Town market is strong, and it is a lack of inventory creating the illusion of nearly flat sales. The median prices for the neighborhoods serviced by Needham, Riverview and Park schools are up $40,100 in median price, which equates to a 13.1% increase. As of April 15, 2013, the inventory of homes in these neighborhoods is 67 homes and 29 of them are under-contract, which is a very low inventory of homes considering the market demand. The variance in the statistics is in the Three Springs area, near the hospital. The builders in Three Springs have been offering some
smaller homes, which drove the median price down $25,000. Overall, the rebound in the economy, and the continuance of low interest loans is sparking the housing market across the country. Land sales were robust, as buyers continued to take advantage of the lower values in the market place.  Commercial activity was also a bit stronger in the 1st quarter, with 7 sales versus 5 last year.

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.