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.

Major League All-Star Darryl Strawberry Comes To Durango

Updated Tuesday March 26, 2013 by YBSWC.

Nine Time MLB All Star Darryl Strawberry will be speaking in Durango, Friday April 19.
Free Admission. Whalen Gym, Fort Lewis College.
Doors open at 5:45 p.m.
Darryl will be discussing his rise, fall and redemption.
There will be raffles for autographed jerseys and photo opportunities.
Don’t miss this opportunity to experience a huge part of baseball history
right here in the Four Corners April 19th at Fort Lewis College!
For more information about Darryl Strawberry:

http://youtu.be/PUumHVdKL4w

http://youtu.be/MXPnAxXSUO4
Strawberry will also be dedicating the Alpine Bank Youth Sports Complex Little League
baseball fields by the ALP pumping station just north of the Centennial Center
on Saturday morning from 9-10 am April 20th.

Don Ricedorff, Broker Associate, GRI, CRS, CCIM, ABR, RSPS, CDPE

E-Mail:  don@durangorealproperty.com

Direct:  970-375-7014

Fax:  970-259-5007

Web:  www.DurangoRealProperty.com

Member of Rocky Mountain Commercial Brokers
http://www.rockymtncommercial.com/

2013 Wells Group Forecast

The Wells Group hosted the 13th Annual Real Estate Forecast on Wednesday of this week.  The forecast presentation, led by local appraiser Bob Allen and Wells Group owners Jim Wotkyns and John Wells,  summarized key market conditions in La Plata county and predictions for the local real estate market for the 2013 year.  All of the forecast information is based on numerous statistical studies done by Mr. Allen and such statistics were analyzed during Wednesday's program.

To recap the Forecast presentation, the news is mostly all positive:

*Population and household growth are "up" in La Plata county which continues to drive demand for housing.

*Tourism has held steady despite of some unfortunate events such as the Mesa Verde fire in 2012.

*National negative housing news has dissipated and national housing media attention is almost entirely positive.

*An over supply of inventory has decreased.

*Mortgage rates continue at historic lows.

*Investors and 2nd home buyers are coming back to the market.

*Foreclosure filings and sales have declined.

*The real estate markets in "feeder" areas to Durango, i.e. Phoenix, Denver, California and Texas, have improved, allowing Sellers in those markets to sell and   transition as buyers to Durango.

*New inventory is going to be available in Edgemont, Three Springs and the Twin Buttes area.

Additional positive business indicators for the La Plata County area were highlighted, including that air transportation has doubled in the last decade allowing easier access to Durango; Mercy Regional Medical Center continues to be an outstanding provider of medical services to the entire region; Fort Lewis College brings a vibrant college population and also generates school related visits to the Durango area continually throughout each year; Mercury Payment System, a large national company, headquarters in Durango and is investing in new corporate offices near the Durango Mall; and the City of Durango will soon be  upgrading the entire business district with high speed internet access.

However, there were some negatives in the Forecast, including:

*Natural gas prices have been persistently low which impacts the local energy industry which is major economic player in this market.

*Private construction remains low.

*Credit conditions remain challenging.

*The decreasing inventory is a potential problem in some parts of the market in order to meet demand.

*Appraisals may become challenging as sales and pricing improve but existing comparables are scarce.

Mr. Wells concluded the program with his predictions for the 2013 year which included the predictions that real estate sales will continue to increase and that real estate appreciation will be 5-7% overall.

The full 2013 Forecast presentation is available for your review on the Wells Group website: wellsgroupdurango.com    A password is required so if you are interested please give our office a call and we will give you the password.

Don Ricedorff, Broker Associate, GRI, CRS, CCIM, ABR, RSPS, CDPE

E-Mail:  don@durangorealproperty.com

Direct:  970-375-7014

Fax:  970-259-5007

Web:  www.DurangoRealProperty.com

Member of Rocky Mountain Commercial Brokers
http://www.rockymtncommercial.com/

The New Company Town

Durango, Colorado is featured on the Forbes list of new company towns - featured on MSN.
http://realestate.msn.com/the-new-company-town#9

An Excellent Opportunity

The Importance Of Flood Insurance

This week we want to discuss briefly the issue of flood insurance and its importance in the selling process.  With so many rivers, streams and creeks in this area, many properties are considered to be in flood zones.  It is critical to know if your property is such a property because it impacts the premium cost of flood insurance for a potential buyer.  Please don't stop reading because you think this is not an issue for you.  In 2010  the Federal Emergency Management Agency

(FEMA) did redistricting in the Durango/Bayfield area and as a result many properties that previously were not categorized as being in "high risk" flood zones now are so designated.  Everyone lives in a flood zone–it's just a question of whether you live in a low, moderate, or high risk area. 

All Sellers should check with a knowledgeable insurance agent regarding the issue of flood insurance.  Even if you have never had to purchase flood insurance before, it is important, we believe, to know whether your home is in a low, moderate or high risk flood area per the new FEMA zone maps.  We have had instances in the last couple of years where a buyer of a property found out through the loan process that their lender would be requiring flood insurance on a property that had not had a requirement for such insurance in the past or where the premium cost was going to go up for the new owner by thousands of dollars over what the current owner was paying.   The new premium cost of high risk flood insurance policy can be as high as over $4000.00 per year.  Obviously, this can be a deal killer for some buyers. 

If you go to the link below you can enter your property address and in most instances determine if your property is in a high risk flood area.   If it is, this is a disclosure issue for a potential Buyer who will most likely have to obtain flood insurance as a part of their loan process.  The sooner this issue is identified the better with respect to making it to a successful closing.  With the help of a knowledgeable insurance professional there may be options to help keep the annual flood insurance premium at a more affordable rate. 

http://www.floodsmart.gov/floodsmart/

Please call us if you have any questions.