New listings are coming online, properties are going under contract, and sales resume as La Plata County begins to reopen. Can commercial real estate weather the storm?
HI AND WELCOME TOANOTHER DURANGO REAL ESTATE UPDATE, TODAY IS JUNE 3RD 2020 AND BOYHAS IT BEEN A WEIRD YEAR SO FAR. AS LONGTIME CHAMPIONS OF FAIRHOUSING, IT’S IMPERATIVE THAT YOU KNOW THAT EQUALITY AND INCLUSIONARE AMONG REALTORS’ MOST CHERISHED VALUES. I HOPE YOU'REWELL AND WEATHERING OUR TUMULTUOUS YEAR WITH HEALTH, LOVE,AND GRACE. THERE ARE A LOT OF MOVING PARTS IN THE REAL ESTATE MARKETRIGHT NOW ESPECIALLY WHEN LOOKING AT SUPPLY, INTEREST RATES ANDTHE TIGHTENING CREDIT SITUATION, AS WELL AS PRICING AND SALES. SO FARTHE PICTURE IN DURANGO HAS REMAINED POSITIVE WITH THE LA PLATACOUNTY SINGLE FAMILY HOME MARKET REBOUNDING. IN THE INTEREST OF TIME,LET'S TAKE A LOOK AT THE COUNTY’S SINGLE FAMILY HOME STATISTICS.ONE OF THE CLEAREST PICTURES PAINTED OVER THE LAST FEW MONTHS HASBEEN THE QUINTESSENTIAL V-SHAPED RECOVERY IN THE PENDING HOMESALES, ALSO KNOWN AS PROPERTIES GOING UNDER CONTRACT. AS YOU CANSEE, IN MID APRIL THE NUMBER OF HOMES GOING UNDER CONTRACT PER WEEKTOOK A SHARP DECLINE DUE TO THE ATTORNEY GENERAL CLARIFYING THATREALTORS WERE NOT TO SHOW PROPERTIES DURING THE STAY AT HOME ORDER.PENDING SALES SHOT BACK UP ONCE THE RESTRICTIONS WERE LIFTED AND BYTHE END OF MAY WE SAW PENDING HOME SALES SOAR ABOVE THEPRE-PANDEMIC LEVELS. PENDING SALES ARE AN IMPORTANT METRICBECAUSE THEY DON'T HAVE A LAG EFFECT LIKE SALES DO, BUT GOING UNDERCONTRACT ISN’T NECESSARILY A GUARANTEED SALE SO, LET'S TAKE A LOOKAT THE OTHER STATS THAT AREN'T QUITE AS STARK IN THEIR STATISTICALSTORYLINE. NEW LISTINGS ARE AN IMPORTANT FACET OF THE MARKET AS THEYDIRECTLY CORRELATE WITH THE LEVEL OF INVENTORY AVAILABLE TOCONSUMERS. THIS IS THE AGE-OLD SUPPLY AND DEMAND RELATIONSHIP AND DUETO OUR CONTINUED AND NOW EXACERBATED CONSTRAINTS ON SUPPLY, PRICESSEEM TO BE REMAINING STABLE IF NOT INCREASING A LITTLE. AS YOU CANSEE IN THIS GRAPH, WE WERE SEEING A SUBSTANTIAL INCREASE IN INVENTORYYEAR OVER YEAR UNTIL MARCH, THEN, NEW LISTINGS DROPPED BELOW 2019LEVELS UNTIL FINALLY RECOVERING IN THE LAST TWO WEEKS OF MAY.THE TREND LINE SEEMS TO BE TELLING US THAT WE'LL BE SEEING LOTS OFNEW INVENTORY COMING ONLINE THIS SUMMER, A WELCOMED RELIEF FOR BUYERSTRYING TO FIND THAT SPECIAL HOME RIGHT NOW. THE LAST SINGLE FAMILYHOME STATISTIC WE'LL LOOK AT ARE THE NUMBER OF HOMES SOLD IN LAPLATA COUNTY BY WEEK SINCE FEBRUARY. AS I'VE SHOWN IN PAST VIDEOS, WEWERE LOOKING AT MUCH HIGHER SALES NUMBERS WHEN COMPARED TO LAST YEARUP UNTIL THE STAY AT HOME ORDER WENT INTO EFFECT. THE LAG EFFECT ONHOME SALES CREATES A LITTLE BIT MORE OF A CONVOLUTED PICTURE BUTULTIMATELY AS YOU CAN SEE, WE'VE RECOVERED AND ARE NEAR OR ABOVE2019'S SALES LEVELS. I PREDICT SALES TO CONTINUE PUMPING THROUGH FALLTHEN IT’S ANYONES GUESS AS TO HOW THE MARKET WILL ACT THIS WINTER.THE HARDEST HIT SECTOR IN ALL OF THIS IS THE COMMERCIAL MARKETWHICH HAS SEEN BOTH LEASING AND SALES COME TO A SCREECHING HALT OVERTHE LAST FEW WEEKS. WE ARE NOT SURE AS TO HOW THE LONG LASTINGAFFECTS WILL DETERMINE FUTURE MARKET STATISTICS BUT I'LL CONTINUE TOMONITOR THE CLIMATE AND KEEP YOU POSTED. FEEL FREE TO HIT THE LIKEBUTTON IF YOU’VE ENJOYED THIS VIDEO AND YOU CAN SEND SPECIFICQUESTIONS TO ME ON ANY OF THE SOCIAL MEDIA SITES AT THE HANDLE@DURANGOBROKERS. STAY WELL, STAY VIGILANT, AND THANKS FOR ALLOWING METO SHINE SOME LIGHT ON YOUR GREATEST INVESTMENTS. SEE YOU SOON.
