Dear friends and clients,
It’s hard to believe that the middle of July is almost upon us! Since April 30th, the real estate market has changed in Durango. That was the deadline for the extended federal tax stimulus program for first-time and move-up homebuyers. There was a sign of hope in the first quarter of 2010; the numbers of sold properties increased significantly compared to the first quarter of 2009. However, within the last couple of months the sales have decreased significantly, the inventory has increased, and the price reductions are occurring every day.
If you’re a seller, it’s important to price your property aggressively. Testing the market simply isn't a good strategy with decreasing home prices, sales at a slower pace, and buyers on the hunt for good deals.
If you’re a buyer still sitting on the fence, it’s a great time to start looking around for the right property. The interest rates are historically low (around 4.75% for 30-year fix). Don’t forget that while you’re rolling the dice, those interest rates may climb back up while you’re hoping for those price drops. Don’t miss out, because this is a good buying market, a great investment market. This is the market that is presenting us with opportunities.
Here’s a quick market summary comparison between January through July of 2010 for Residential and Land sales compared, with the same period in 2009 in La Plata County.
1. Residential - The total dollar volume is up 50.8%, from $76 million in 2009 to $114.5 million for the same period in 2010 in La Plata County. The number of units sold increased from 219 to 303 year to year comparison. The average days on the market are up from 211 to 253. Plus 82 properties are currently “under contract”, sales pending, with a total dollar volume of $31 million.
2. Land - The total dollar volume is up 21.1%, from $7.7 million in 2009 to $11.4 million for the same period in 2010 (including recently sold 543-acre parcel for $4.5 million in Bayfield). The number of lots sold increased from 38 to 46. The average days on the market was 289 days, down sharply from 361 in the same period a year ago.
As always, thank you for your business and anyone you have sent my way! The highest compliment you can give me is the referral of your family and friends. I will make sure to give them the great service you’ve come to expect from me.
Regards,
Gabi Bergstrom
Broker Associate
