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Jarrod Nixon is the Colorado Association of REALTORS® Market Trends Spokesperson for Southwest Colorado and a Broker Associate with Coldwell Banker Distinctive Properties.
Monthly Local Market Trend Reports:
May 2024
- Durango/La Plata County Real Estate Market Insights: Contrasting Trends in various price points as well as between Single-Family Homes and Townhouse-Condo Properties
A recent real estate market analysis shows distinct trends between single-family homes and townhouse-condo properties. New listings for single-family homes experienced a notable 17.9% decrease, while townhouse-condo properties saw a modest increase of 2.8%. The median sales price also exhibited divergent movements. Single-family homes witnessed an 8.6% decrease, settling at $699,000, while townhouse-condo properties surged by 8.0% to $497,000. Meanwhile, the average days on the market increased by 3.8% for single-family homes and 17.7% for townhouse-condo properties.
Delving deeper into regional insights, notable shifts were observed in specific locations. In the town of Durango, sold listings experienced a 27% decline in May, and the average sales price increased by 15%. Conversely, rural properties outside of Durango faced a 20% drop in sold listings, with a marginal decrease in median price to $832,000.
Further analysis revealed intriguing statistics across various price ranges. Properties priced from $750,000 and under showcased an approximate 55-day market duration, with a current absorption rate of 1.7 months. As the price range escalates, the metrics vary, indicating a shift in market dynamics. For instance, the $1 million to $1.5 million range reported 96 days on the market and a 6—to 7-month supply of inventory.
Notably, the market dynamics demonstrate a clear distinction based on price points. While the sub-$750,000 range remains a seller’s market, the $1 million and above segments are gravitating towards a stronger seller’s market. The price point of over $2 million indicates a shift towards a more robust buyer’s market.
In conclusion, the real estate market paints a nuanced picture of contrasting trends between single-family homes and townhouse-condo properties, emphasizing the need for a tailored approach based on market segments and locations.
April 2024
- La Plata County Real Estate Market Shows Resilience Amidst Changing Dynamics La Plata County, Colorado—Amid evolving market conditions, the real estate landscape in La Plata County continues to demonstrate its resilience and adaptability. Year-to-date statistics reveal interesting trends shaping the housing market, offering a mix of challenges and opportunities for buyers and sellers. Key statistics in the single-family homes segment: New listings have increased by 16%, indicating a vibrant market for prospective buyers. However, the number of sold listings has slightly declined by 14%, reflecting some hesitancy in the selling process. Despite this, home prices have seen a significant uptick of 9.2%, with the median price now at $785,000, showcasing the value and desirability of properties in the region. Challenges have surfaced in rising inventory levels for sellers, with 84 townhouses/condos currently on the market. This is a 121% increase compared to the previous April, but adding to the options available for homebuyers and investors. The monthly inventory supply for townhouses and condos has risen from 1.7 to 4.3 months. This shift reflects a changing market dynamic, potentially offering buyers more negotiating power.As the market prepares for a robust selling season in the coming months, the increased inventory is expected to provide local residents with more housing options. With historically low interest rates keeping sellers on the sidelines the previous few years, the hope is that those waiting will take advantage of the current market conditions and move within the locality. In conclusion, La Plata County’s real estate sector remains dynamic and full of opportunities. Despite certain challenges, the market continues to evolve, presenting a fertile ground for those looking to invest, purchase, or sell properties in the area.
March 2024
- Durango/La Plata County
It was a sluggish start for home sales in La Plata County for the first quarter. Closed sales were down 12%, and pending sales were down 10%. Days on the market rose by 31%. Inventory has begun to improve month over month, with 59 new single-family units coming to market in March, a 45% increase over last year. The additional inventory doesn’t seem to be having much of an effect on prices, which continue to climb. The median home price YTD for La Plata County is up 17.4% to $689,500. In-town Durango home prices rose 3.7% to $777,500. The biggest shift in the local housing market has been in the condo sector, particularly in the resort area. Inventory levels rose almost 165% for March compared to the same time last year, with the monthly supply increasing from just under two months to nearly six. The primary driver for this increase has been the skyrocketing cost of insurance. Some communities have had their coverage canceled or not renewed, with several national carriers pulling out of the market. Premiums have gone up more than ten-fold in some cases, forcing some HOAs to more than double their monthly fees. This, combined with diminishing rental revenues, has prompted some investors to liquidate their assets. We are beginning to see prices soften in that sector.The challenges with obtaining insurance in La Plata County, particularly in rural subdivisions, are indeed concerning, especially considering the looming threat of the upcoming wildfire season. Insurance companies may become more cautious and selective in providing coverage to properties located in high-risk wildfire zones. This could further exacerbate the challenges faced by homeowners in rural subdivisions. The difficulty in obtaining insurance not only affects individual homeowners but also has broader implications for the community as a whole. Without adequate insurance coverage, homeowners may risk financial losses in the event of a disaster, which could have a ripple effect on the local housing market and economy. Finding sustainable solutions to address the insurance challenges will be crucial. This may involve working with insurance providers, local authorities, and community stakeholders to mitigate risks, improve resilience, and explore alternative insurance options.
February 2024
- Durango/La Plata County
The real estate market in La Plata County continues to be a significant challenge for buyers, especially first-time homebuyers, and our workforce. The need for more inventory continues to push prices upward and out of reach for most of our local buyers. There were just 15 single-family transactions for February 2024 compared to 33 in February 2023. The median price jumped almost 20% to $638,000, with an average sales price of $872,753. The townhome/condo segment saw significant gains for the same period, with the median price increasing 50% to $535,000 from $356,000 in February 2023.Buyers hope the mild winter and early spring weather will encourage sellers to enter the market earlier than usual, increasing competition and creating more buying options. Something to note is that even with the increase in the median and average sale prices, the gap between the list price and sold price expanded to 95%, indicating that sellers are becoming more motivated to negotiate, a good sign for buyers.
January 2024
- Durango/La Plata County
The Durango/La Plata County housing market didn’t see significant changes in several metrics compared to January 2023. The median home price remained exactly as it was in January 2023 at $750,000. Days on the market increased by only two days to 116. The current inventory of homes decreased by just two units to 122 active listings, and months of supply increased slightly from 2.2 months to 2.5 months. The number of new listings fell to 24 compared to 29 in January of 2023, while the number of sold units increased from 17 to 25 due to a brief surge in activity in the fourth quarter of 2023. The big story for January was in the condo/townhome segment, where we saw a whopping increase in the number of new listings, from ten units in January 2023 to 26 in January 2024, a 160% increase. The demand did not follow suit, with sold units staying virtually unchanged at 14.The glut of new inventory has pushed prices downward from a median price of $565,000 to $486,000. The inventory in this segment has increased by 50%, and the number of months of inventory has also doubled to just over three months compared to 1.7 last January. The change in inventory is partially due to newly constructed units coming to market. In addition, owners engaging in short-term rentals are witnessing decreased occupancy rates, making their units less attractive as investments and prompting more units to be listed for sale. The prices are being affected by unprecedented increases in HOA dues at some of the larger condominium communities due to skyrocketing insurance premiums. One community in particular saw their rates increase tenfold, tripling monthly HOA dues.Affordability continues to be a pressing concern for homebuyers in La Plata County, exacerbated by higher taxes, escalating insurance premiums, and rising HOA fees. The current landscape indicates no immediate relief for these affordability challenges.
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