Pandemic? Real Estate Market Healthy

02/09/2020

The real estate market remains strong in the Durango area, and on average, is balanced between housing stock and purchases. But houses valued at under $450,000 are sellling like hot cakes!

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HELLO AND WELCOME TO ANOTHER EPISODE OFTHE DURANGO REAL ESTATE UPDATE, MY NAME IS DAN KORMAN, BROKER/OWNEROF ALPENGLOW PROPERTIES RIGHT HERE IN DOWNTOWN DURANGO COLORADO. SOMEGOOD NEWS HAD BEEN FILTERING THROUGH THE CHAOS AS UNEMPLOYMENTNUMBERS IN LA PLATA COUNTY HAVE DROPPED FROM 13.7% IN APRIL TO 10.1%IN MAY. THERE’S A LOT OF WORK TO DO AND A LOT OF UNCERTAINTY BUT IFTHERE IS ANYTHING CERTAIN IN THIS WORLD RIGHT NOW, IT’S THAT REALESTATE IS A-BOOMIN'. FOR SOME CONTEXT, THE 2008 FINANCIAL CRISIS WASCAUSED BY OVER LENDING AND OVER BUILDING LEADING TO AN INCREDIBLEFLOOD OF FORECLOSURES IN MARKETS ALL ACROSS THE UNITED STATES. THISTIME AROUND IS DIFFERENT, MANY ECONOMIC PARACHUTES HAVE BEEN DEPLOYEDAND OVERALL, DEMAND CONTINUES TO OUTPACE SUPPLY IN A LOT OF MARKETS,ESPECIALLY HERE IN SOUTHWEST COLORADO. BACK IN MARCH AND APRIL WHENDEMAND DROPPED, SO DID SUPPLY DUE TO WOULDBE SELLERS HOLDING OFF ONTHEIR LISTING IF THEY HAD THAT LUXURY. ONCE THE STAY AT HOME ORDERWAS EASED INTO THE SAFER AT HOME ORDER, DEMAND RESURFACED AND NEWLISTINGS HAVE SLOWLY BUT SURELY BEEN MAKING THEIR WAY ONTO THEMARKET. THIS HAS CAUSED PRICING TO REMAIN STABLE DUMBFOUNDING THOSEBUYERS HOPING TO GET A GREAT DEAL DUE TO THE PANDEMIC. SO WHAT ARETHE NUMBERS SAYING, APPARENTLY DURANGO’S REAL ESTATE MARKET SEEMSTO HAVE FORGOTTEN THAT THERE’S A GLOBAL PANDEMIC GOING ON. THE INTOWN DURANGO SINGLE FAMILY HOME SALES SHOW A SIX MONTH SUPPLY, THISIS WHAT WE REFER TO AS A “BALANCED MARKET”. BUT, WHEN YOU LOOK ATHOMES UNDER $450K, THAT SUPPLY GOES DOWN TO 2.8 MONTHS MEANING IT’SA SELLER’S MARKET AND ESSENTIALLY NO SUPPLY EXISTS IN THAT RANGE.IF YOU HAVE A HOME IN THIS PRICEPOINT, NOW IS THE TIME TO LIST IT!THE NUMBER OF PENDING HOME SALES IN JUNE SHOT UP 145% COMPARED TOAPRIL’S UNDER CONTRACT NUMBERS, AND WE SAW 38 NEW LISTINGS HIT THEMARKET IN JUNE, A 40% INCREASE FROM THE SAME MONTH LAST YEAR. DURANGOSAW 2.5 TIMES THE NUMBER OF HOMES SOLD IN JUNE OF THIS YEAR COMPAREDTO JUNE OF 2019, WHICH MEANS WE’RE GETTING BACK TO THE PRE-PANDEMICLEVELS OF SALES. IN CONTRAST, ONLY 9 HOMES SOLD IN APRIL OF THIS YEARWHICH IS A 25% DECREASE FROM APRIL OF 2019, BUT, TO HAMMER HOME THEPRICING CONUNDRUM, THE AVERAGE LIST PRICE TO SOLD PRICE OF SINGLEFAMILY HOMES IN APRIL 2020 WAS 100%, IN THE MIDDLE OF A GLOBALPANDEMIC. SO LONG STORY SHORT, THE REAL ESTATE MARKET IS ONE OF THELEADING SECTORS ADDING TO THE COUNTRY’S RECOVERY, AND SO LONG ASINTEREST RATES REMAIN LOW (TODAY THEY WERE AT 2.6%!) AND SELLERSCONTINUE TO ADD HOUSING STOCK, WE COULD SEE A LOT MORE ACTIVITYTHROUGH THE FALL. FOR MORE INFORMATION OR TO SEND ME QUESTIONS,PLEASE VISIT APLENGLOWPROPERTIES.COM OR YOU CAN FIND ME ON ANY OF THESOCIAL MEDIA SITES AT OUR HANDLE, @DURANGOBROKERS. THANK YOU FORWATCHING, STAY WELL, AND BE KIND TO EACH OTHER.

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