The second quarter and year to date real estate statistics for La Plata County show we are experiencing an inventory crunch. Compared to last year at this time, the inventory of listings is down; - 3.4% for single family homes and -3.3% for condos/townhomes. Because of this reduction, the number of home sales is down -18% in-town Durango, over -30% in Bayfield, and -4.5% overall for the County. Median price increases continue, partially because of the crunch, and stand at 6.4%, or $385,000 for the median La Plata County home.
The resort market is doing extremely well, after many lackluster years of slow gains since the real estate market correction of 2008.
Mortgage rates have been steadily increasing, as the Federal Reserve is confident about the housing market. As it rises, affordability will become more of an issue. If the rate rises 1% from today, a Buyer can afford 10% less home for the same payment. Nationally, the confidence of Buyers remains very high.
Will the 416 Fire have negative effects on real estate sales? Except in a few cases, contracts did not terminate or slow due to and during the worst days of the fire. Remembering the devastating aftermath of the Missionary Ridge Fire of 2002, we experienced no more than a temporary effect in the real estate market. Time will tell if there are side effects of tourism cancellations, especially with second home purchases.
Do you have a question about your neighborhood? Call us for details. As you know, all real estate is local!