Real Estate Update: January '21 Sees Historic Numbers in Residential Sales

2/10/2021

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.

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Welcome to the Durango real estate update.

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My name is Dan Korman, broker

owner of Alpenglow Properties,

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a full service real estate

firm located right here

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in downtown Durango, Colorado.

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When I did my January

recap in February of 2020,

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exactly one year ago today,

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I told you that there were more listings

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on the market than ever before.

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That the median price

for a single family home

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was around $400,000 for

the first time in years.

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And emphatically stated

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that it was the best

time to buy real estate.

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Well, here's a clip from that video.

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If you've been thinking

about pulling the trigger

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on something, it seemingly the

right time to call your agent

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and make that offer.

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The drops in average

and median home prices

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are most likely attributed to

a higher listing inventory,

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continuously low mortgage rates,

a bit of winter stagnation,

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as well as uncertainty

within our geopolitical

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and economic landscapes.

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I think we can all agree it's nice

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to have some normalcy

return to the market,

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but I don't foresee the

lag lasting through March

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as buyers are starting to emerge

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from their winter activities.

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My how things have changed in 12 months.

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Whether you look at the national

or local real estate news,

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there are only a couple

of headlines driving most

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of the conversations.

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National housing inventory

is at an all time low,

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mortgage rates are at an all time low,

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and apparently you should

have invested in GameStop.

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Well, overall, even our local

little real estate market

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landscape is the complete

opposite picture as what I painted

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in that video shot only

12 long months ago.

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Fast forward to 2021,

and our active listings

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are at all time lows,

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down 30% compared to

the same time last year.

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We have the highest amount

of pending transactions

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in the history of the MLS

for the month of January,

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as well as a record breaking amount

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of single-family home units sold

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in Durango year-to-date as well.

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If that's clear as mud, simply put,

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the available housing stock is way down,

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and the number of sales

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are up with pricing reaching

uncomfortable levels

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in some instances.

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I'm hoping that over the

next couple of months,

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I'll be able to come on the show

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and talk about inventory increases

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that would relieve pressure on pricing.

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But until then, let's focus on something

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a little more fun, shall we?

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How about commercial real estate?

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Commercial property leasing and sales

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are important economic

drivers for our county

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and the nation at large.

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There are many different facets

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of the commercial real estate market,

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including but not limited

to owner occupied space,

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long-term leasehold

investments, vacant land,

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business opportunities for sale with

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or without the real estate

attached, redevelopment,

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leasing and the list

goes on and on and on.

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La Plata county's existing

market can be broken

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into four major

categories: office, retail,

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light industrial and multi-family.

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The lack of industrial space here

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in La Plata county is a pain point

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and has been for a while.

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And many local entities have

been trying to alleviate

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since Bodo Park was completely absorbed.

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Given the high demand for

space to bring jobs in sectors

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such as manufacturing, local groups

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like the Economic Development Alliance

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have taken upon themselves

to help identify areas

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that would naturally be a path for growth.

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One of these areas is La Posta Road.

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And with the recent

acquisition of a 90 acre parcel

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formerly known as the Carter property,

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it's looking like some

wheels are set in motion

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for a new industrial park to

be redeveloped down the road.

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Hopefully in the near future.

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Juxtapose to our near

zero feet of industrial

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and warehouse space

available is an abundance

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of office and retail space.

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There is around 200,000 square feet

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of vacant commercial space

in La Plata County right now.

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And that's not including

off-market properties such

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as the building formerly

known as Worldpay,

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or several government

owned parcels scattered

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around the area.

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These vacancies are creating ripples

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in the sectors that actually trickle down

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through small businesses, with one

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of the hardest hit being

the restaurants in our area.

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So it's anyone's guess

as to when we'll be able

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to find that normal vacancy rate again,

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but regardless of these points,

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Durango's extremely resilient,

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and it's been an incredible

path to see locals rallying

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behind the business

community over the last year.

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I can say with confidence

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that I'd rather be nowhere

else in the world right now

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as we all ride out the storm together.

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With amazing opportunities like

workforce housing programs,

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urban renewal authority

development projects,

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and new areas to be

developed on the horizon,

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there has never been a more exciting time

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to be in real estate in Durango.

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It's been a pleasure sharing this month

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and all my past months real

estate updates with you.

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Please feel free to reach

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out anytime via email at

Dan@AlpenglowProperties.com,

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or on any of our social media

handles @DurangoBrokers.

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Stay vigilant in your house

hunts, find that perfect space

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for your business, and

be kind to each other.

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Thank you for watching.

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