Fewer houses available, low mortgage rates are driving up the cost of housing, but sales of single-family homes was at a record high for January. The commercial office space is another matter. Find out more.
1
00:00:06,590 --> 00:00:08,430
Welcome to the Durango real estate update.
2
00:00:08,430 --> 00:00:11,930
My name is Dan Korman, broker
owner of Alpenglow Properties,
3
00:00:11,930 --> 00:00:14,460
a full service real estate
firm located right here
4
00:00:14,460 --> 00:00:17,200
in downtown Durango, Colorado.
5
00:00:17,200 --> 00:00:20,660
When I did my January
recap in February of 2020,
6
00:00:20,660 --> 00:00:22,660
exactly one year ago today,
7
00:00:22,660 --> 00:00:24,440
I told you that there were more listings
8
00:00:24,440 --> 00:00:26,300
on the market than ever before.
9
00:00:26,300 --> 00:00:28,620
That the median price
for a single family home
10
00:00:28,620 --> 00:00:31,810
was around $400,000 for
the first time in years.
11
00:00:31,810 --> 00:00:33,090
And emphatically stated
12
00:00:33,090 --> 00:00:35,500
that it was the best
time to buy real estate.
13
00:00:35,500 --> 00:00:38,120
Well, here's a clip from that video.
14
00:00:38,120 --> 00:00:39,710
If you've been thinking
about pulling the trigger
15
00:00:39,710 --> 00:00:42,410
on something, it seemingly the
right time to call your agent
16
00:00:42,410 --> 00:00:43,940
and make that offer.
17
00:00:43,940 --> 00:00:45,960
The drops in average
and median home prices
18
00:00:45,960 --> 00:00:48,820
are most likely attributed to
a higher listing inventory,
19
00:00:48,820 --> 00:00:52,020
continuously low mortgage rates,
a bit of winter stagnation,
20
00:00:52,020 --> 00:00:54,210
as well as uncertainty
within our geopolitical
21
00:00:54,210 --> 00:00:56,100
and economic landscapes.
22
00:00:56,100 --> 00:00:57,500
I think we can all agree it's nice
23
00:00:57,500 --> 00:00:59,670
to have some normalcy
return to the market,
24
00:00:59,670 --> 00:01:02,360
but I don't foresee the
lag lasting through March
25
00:01:02,360 --> 00:01:03,700
as buyers are starting to emerge
26
00:01:03,700 --> 00:01:05,401
from their winter activities.
27
00:01:05,401 --> 00:01:08,660
My how things have changed in 12 months.
28
00:01:08,660 --> 00:01:11,520
Whether you look at the national
or local real estate news,
29
00:01:11,520 --> 00:01:13,680
there are only a couple
of headlines driving most
30
00:01:13,680 --> 00:01:15,160
of the conversations.
31
00:01:15,160 --> 00:01:18,060
National housing inventory
is at an all time low,
32
00:01:18,060 --> 00:01:20,540
mortgage rates are at an all time low,
33
00:01:20,540 --> 00:01:23,500
and apparently you should
have invested in GameStop.
34
00:01:23,500 --> 00:01:26,460
Well, overall, even our local
little real estate market
35
00:01:26,460 --> 00:01:29,590
landscape is the complete
opposite picture as what I painted
36
00:01:29,590 --> 00:01:32,650
in that video shot only
12 long months ago.
37
00:01:32,650 --> 00:01:35,250
Fast forward to 2021,
and our active listings
38
00:01:35,250 --> 00:01:36,290
are at all time lows,
39
00:01:36,290 --> 00:01:39,630
down 30% compared to
the same time last year.
40
00:01:39,630 --> 00:01:41,681
We have the highest amount
of pending transactions
41
00:01:41,681 --> 00:01:44,790
in the history of the MLS
for the month of January,
42
00:01:44,790 --> 00:01:46,230
as well as a record breaking amount
43
00:01:46,230 --> 00:01:48,020
of single-family home units sold
44
00:01:48,020 --> 00:01:50,190
in Durango year-to-date as well.
45
00:01:50,190 --> 00:01:52,040
If that's clear as mud, simply put,
46
00:01:52,040 --> 00:01:54,120
the available housing stock is way down,
47
00:01:54,120 --> 00:01:55,050
and the number of sales
48
00:01:55,050 --> 00:01:57,420
are up with pricing reaching
uncomfortable levels
49
00:01:57,420 --> 00:01:58,623
in some instances.
50
00:01:59,490 --> 00:02:01,490
I'm hoping that over the
next couple of months,
51
00:02:01,490 --> 00:02:02,900
I'll be able to come on the show
52
00:02:02,900 --> 00:02:04,840
and talk about inventory increases
53
00:02:04,840 --> 00:02:07,160
that would relieve pressure on pricing.
54
00:02:07,160 --> 00:02:09,030
But until then, let's focus on something
55
00:02:09,030 --> 00:02:10,790
a little more fun, shall we?
56
00:02:10,790 --> 00:02:12,680
How about commercial real estate?
57
00:02:12,680 --> 00:02:14,500
Commercial property leasing and sales
58
00:02:14,500 --> 00:02:16,760
are important economic
drivers for our county
59
00:02:16,760 --> 00:02:18,410
and the nation at large.
60
00:02:18,410 --> 00:02:19,670
There are many different facets
61
00:02:19,670 --> 00:02:21,210
of the commercial real estate market,
62
00:02:21,210 --> 00:02:24,630
including but not limited
to owner occupied space,
63
00:02:24,630 --> 00:02:27,570
long-term leasehold
investments, vacant land,
64
00:02:27,570 --> 00:02:29,410
business opportunities for sale with
65
00:02:29,410 --> 00:02:32,180
or without the real estate
attached, redevelopment,
66
00:02:32,180 --> 00:02:34,484
leasing and the list
goes on and on and on.
67
00:02:34,484 --> 00:02:37,260
La Plata county's existing
market can be broken
68
00:02:37,260 --> 00:02:40,730
into four major
categories: office, retail,
69
00:02:40,730 --> 00:02:43,038
light industrial and multi-family.
70
00:02:43,038 --> 00:02:45,140
The lack of industrial space here
71
00:02:45,140 --> 00:02:46,840
in La Plata county is a pain point
72
00:02:46,840 --> 00:02:48,000
and has been for a while.
73
00:02:48,000 --> 00:02:50,640
And many local entities have
been trying to alleviate
74
00:02:50,640 --> 00:02:53,410
since Bodo Park was completely absorbed.
75
00:02:53,410 --> 00:02:56,010
Given the high demand for
space to bring jobs in sectors
76
00:02:56,010 --> 00:02:58,210
such as manufacturing, local groups
77
00:02:58,210 --> 00:02:59,950
like the Economic Development Alliance
78
00:02:59,950 --> 00:03:02,640
have taken upon themselves
to help identify areas
79
00:03:02,640 --> 00:03:05,340
that would naturally be a path for growth.
80
00:03:05,340 --> 00:03:07,610
One of these areas is La Posta Road.
81
00:03:07,610 --> 00:03:10,140
And with the recent
acquisition of a 90 acre parcel
82
00:03:10,140 --> 00:03:12,080
formerly known as the Carter property,
83
00:03:12,080 --> 00:03:14,300
it's looking like some
wheels are set in motion
84
00:03:14,300 --> 00:03:17,750
for a new industrial park to
be redeveloped down the road.
85
00:03:17,750 --> 00:03:19,830
Hopefully in the near future.
86
00:03:19,830 --> 00:03:22,520
Juxtapose to our near
zero feet of industrial
87
00:03:22,520 --> 00:03:24,840
and warehouse space
available is an abundance
88
00:03:24,840 --> 00:03:27,150
of office and retail space.
89
00:03:27,150 --> 00:03:29,210
There is around 200,000 square feet
90
00:03:29,210 --> 00:03:31,680
of vacant commercial space
in La Plata County right now.
91
00:03:31,680 --> 00:03:33,980
And that's not including
off-market properties such
92
00:03:33,980 --> 00:03:36,150
as the building formerly
known as Worldpay,
93
00:03:36,150 --> 00:03:38,180
or several government
owned parcels scattered
94
00:03:38,180 --> 00:03:39,470
around the area.
95
00:03:39,470 --> 00:03:42,130
These vacancies are creating ripples
96
00:03:42,130 --> 00:03:43,975
in the sectors that actually trickle down
97
00:03:43,975 --> 00:03:46,220
through small businesses, with one
98
00:03:46,220 --> 00:03:49,040
of the hardest hit being
the restaurants in our area.
99
00:03:49,040 --> 00:03:51,350
So it's anyone's guess
as to when we'll be able
100
00:03:51,350 --> 00:03:53,610
to find that normal vacancy rate again,
101
00:03:53,610 --> 00:03:55,170
but regardless of these points,
102
00:03:55,170 --> 00:03:57,040
Durango's extremely resilient,
103
00:03:57,040 --> 00:04:00,118
and it's been an incredible
path to see locals rallying
104
00:04:00,118 --> 00:04:03,400
behind the business
community over the last year.
105
00:04:03,400 --> 00:04:04,460
I can say with confidence
106
00:04:04,460 --> 00:04:06,550
that I'd rather be nowhere
else in the world right now
107
00:04:06,550 --> 00:04:08,700
as we all ride out the storm together.
108
00:04:08,700 --> 00:04:11,630
With amazing opportunities like
workforce housing programs,
109
00:04:11,630 --> 00:04:14,170
urban renewal authority
development projects,
110
00:04:14,170 --> 00:04:16,840
and new areas to be
developed on the horizon,
111
00:04:16,840 --> 00:04:18,560
there has never been a more exciting time
112
00:04:18,560 --> 00:04:20,203
to be in real estate in Durango.
113
00:04:21,066 --> 00:04:23,460
It's been a pleasure sharing this month
114
00:04:23,460 --> 00:04:26,170
and all my past months real
estate updates with you.
115
00:04:26,170 --> 00:04:27,100
Please feel free to reach
116
00:04:27,100 --> 00:04:31,490
out anytime via email at
Dan@AlpenglowProperties.com,
117
00:04:31,490 --> 00:04:35,070
or on any of our social media
handles @DurangoBrokers.
118
00:04:35,070 --> 00:04:38,040
Stay vigilant in your house
hunts, find that perfect space
119
00:04:38,040 --> 00:04:40,590
for your business, and
be kind to each other.
120
00:04:40,590 --> 00:04:41,740
Thank you for watching.
