Urban Refugees Heat Real Estate Market

The real estate market is hot right now, thanks, in part, to urban pandemic refugees looking for a better quality of life. Alpenglow Properties owner Dan Korman dives into the stats.

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HI THERE AND WELCOME BACK TO ANOTHEREPISODE OF THE DURANGO REAL ESTATE UPDATE. MY NAME IS DAN KORMAN,BROKER/OWNER OF ALPENGLOW PROPERTIES, A LOCAL REAL ESTATE FIRMLOCATED IN DOWNTOWN DURANGO COLORADO. WE JUST ENDED THE THIRD QUARTEROF 2020, SO THAT MEANS WE GET TO GEEK OUT ON MARKET STATISTICS! LIKEMUCH OF THE U.S., THE SOUTHWEST COLORADO REAL ESTATE MARKET IS HOTRIGHT NOW, AND I DON’T KNOW ABOUT YOU, BUT I’M READY TO FLYTHROUGH Q4 AND START 2021 ALREADY. WHILE MUCH TURMOIL AND UNCERTAINTYEXISTS IN OUR COUNTRY’S POLITICAL AND ECONOMIC LANDSCAPE, REALESTATE MARKETS ALL OVER THE COUNTRY SEEM TO BE A BELL-WEATHER FOR OURECONOMY. WITH THE ABILITY TO WORK REMOTELY, MORE AND MORE POEPLE ARELOOKING TO THE DURANGOS OF THE WORLD TO ALLEVIATE STRESS AND FIND APLACE THEY CAN ESCAPE TO WITH A LITTLE MORE SPACE. LA PLATA COUNTYHAS A LOT OF THAT, AND AS A WHOLE IS SEEING THE QUINTESSENTIALRAMIFICATIONS OF AN URBAN EXODUS FIRST HAND… OUR SALES ARE UP, ANDOUR INVENTORY IS DOWN, AND THAT MEANS PRICING IS UP AND WHEN COUPLEDWITH AN INFLUX OF PEOPLE FROM NEW YORK TO SAN FRANCISCO WHO AREFLOODING OUR MARKET IN SEARCH OF A PIECE OF OUR PARADISE, THOSEPRICES CONTINUE TO STAY LOFTED. SO, WHAT ARE THE NUMBERS SHOWING?WELL, TAKE A LOOK AT THESE 3 YEAR GRAPHS SHOWING THE 12 MONTH ROLLINGAVERAGES OF SINGLE FAMILY HOME SALES IN LA PLATA COUNTY. THE TOPGRAPH SHOWS THAT NEW LISTINGS ARE DOWN 11%, THAT ACTIVE LISTINGS AREDOWN 7%, AND AVERAGE SOLD PRICES ARE UP 7%, CREATING A REAL LIFEPICTURE OF THE CORRELATION BETWEEN SUPPLY AND DEMAND. WHEN WE DRILLDOWN AND LOOK AT HOME STATISTICS IN THE COUNTY FOR JUST THE THIRDQUARTER OF THIS YEAR COMPARED TO LAST, A STARK CONTRAST IS EVIDENTTHOUGH NOT THE PICTURE I MIGHT HAVE PREDICTED HAD YOU ASKED ME INMARCH… THE NUMBER OF HOMES SOLD IN Q3 OF 2020 COMPARED TO THE SAMEQUARTER OF 2019 IS UP 41%! MORE SPECIFICALLY, THERE WERE 334 HOMESSOLD BETWEEN JULY 1 AND SEPTEMBER 30TH, DURING A GLOBAL EPIDEMIC!WITH THAT, THE MEDIAN PRICE JUMPED UP 12.6% IN Q3 YEAR OVER YEAR TO$519,000 AND THE AVERAGE SALES PRICE IN Q3 WAS UP 19.6% TO $660,000.WHILE THAT’S MUSIC TO THE INDUSTRY’S EARS, THIS PUT’S AN UNDUESTRAIN ON AFFORDABILITY AND LOCALS ARE FEELING THE PAIN. I HAVE SEENSEVERAL SITUATIONS WHERE SELLERS HAVE RECEIVED MULTIPLE OFFERS, SOMEOF WHICH ARE CASH, OVER ASKING PRICE, WITH NO APPRAISAL… AND WHILEI’M THE EVER-OPTIMISTIC PROFESSIONAL, I FEAR THAT WITHOUT ANINCREASE IN INVENTORY WE’LL SEE THE PRICES CONTINUE TO MOVE UPWARDINTO THE STRATOSPHERE. ALL IS NOT LOST THOUGH, IF YOU’RE LOOKINGFOR A REASONABLY PRICED HOME IT JUST MEANS YOU MIGHT HAVE TO WORK ALITTLE MORE LEGWORK TO FIND IT. IF YOU’RE FRUSTRATED BY THE MARKET,TIME IS YOUR SAVING GRACE. THIS WINTER WE WILL SEE A SLOW DOWN IN THEACTIVITY AND JANUARY/FEBRUARY COULD BE A GREAT TIME TO BE SHOPPINGFOR A HOME. SOME OF THE OVERPRICED INVENTORY FROM THE SUMMER MIGHTGET REALISTIC PROVIDING SOME PRICE RELIEF AS THE SNOWFALLS. WINTERMIGHT ALSO SEE SOME OF THE OUT OF STATERS OPTING TO TABLE THEIRSEARCH UNTIL THE SNOW MELTS NEXT SPRING. SO AS YOUR REALTOR I IMPLOREYOU TO STAY STRONG, BE DILIGENT, AND REACH OUT ANYTIME IF THERE’SANYTHING I CAN DO TO ASSIST YOU. AS ALWAYS YOU CAN FIND ME ON OURSOCIAL MEDIA HANDLE @DURANGOBROKERS, OR EMAIL ME ATDAN@ALPENGLOWPROPERTIES.COM… BE KIND TO EACH OTHER , STAY WELL, ANDTHANKS FOR WATCHING.

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