I hope everyone is having a great summer, and enjoying the sunshine and Colorado mountains!
Have you noticed the shift in the market? We are starting to see changes in the market with the rising interest rates and other economic factors in the Durango area. The properties listed below $1M that are priced accordingly, are still selling quickly. The properties that are priced above the market are taking longer to sell, and price reductions are becoming more frequent. What we are seeing is a transition from a seller’s market to a more balanced market.
The buyers now have more choices of homes and have more time to think through their options before selecting the right home as competition eases. The most important factor when purchasing a home is not to make sacrifices just to get a house, be sure you are buying based on your budget and needs. If you find a home you love and it fits your personal financing and long-term economic stability, then chances are it might be right for you!
The shift is happening, but the seller’s market is still here as we have less than three months’ worth of inventory. A balanced market would be between three and six months; in a buyer’s market there would be more than six months of inventory.
If you are a seller, price your home competitively, and present your home in the best possible light as this is still a good time to be on the market due to the lack of inventory. High quality homes often receive offers over the asking price.
In La Plata County, 113 new single-family listings came on the market in June. For a little perspective, that number was just 25 back in December of 2021. By the close of the month, there were 186 homes still available for sale, and La Plata County actually reached 2.9 months of inventory—a 60% year-over-year gain, but still nowhere close to the 6 months of inventory needed to balance the market.
With competition easing, prices dropped again from $762,000 the prior month to $675,000 in June for a single-family home in La Plata County. That’s still 19.4% higher compared to June, 2021, and on average, single-family homes are selling for 100% of their list price. Days on the market are at 52, though it was taking an average of 51 days to sell at the same time last year when there was much less inventory and far lower rates.
Durango is a desirable place to live, and people will be moving here regardless of what the market is doing. Whether you’re looking to buy or sell a home in 2022, it’s absolutely possible to achieve your goals.
I am looking forward to another successful quarter helping buyers and sellers navigate the Real Estate Market!