As many of you know, there is currently a nationwide slow down of home sales, with some areas experiencing worse conditions than others. I talk with many people who come to Durango, and they are surprised that prices are higher than they expected to find here given the real estate environment at the national level. Some have commented that they will simply wait for prices to come down in Durango the way they have elsewhere. Unfortunately, this strategy does not often produce the desired results in Durango. While other communities have seen real estate sales crash, in La Plata County over 300 properties, including condos & townhomes, homes, and land, have sold since April 1, 2007. Recently CNBC took a look at the Durango Real Estate market and said it was one of the hottest markets in the country. You can see the video by clicking here. The sales statistics for the 2nd quarter of 2007 were also just released by the Durango Area Association of Realtors. You can see this report here. This report lends further support to the fact that the Durango Area real estate market is weathering the storm well and indeed continues to gain steam and prosper while other areas in the U.S. are experiencing a serious real estate downturn.

Durango is a resort community with a great deal of real estate demand. But due to geographic limitations and being surrounded by vast tracts of public land, there is a relatively small amount of housing inventory and available land for development. Over the last 5 years Durango has seen an average annual increase in prices between 18 to 22 percent. Even so, we are still at a tenth of the prices one would find in Aspen, Vail, or Telluride. Since many of the homes in Durango were purchased as a second or third home, many of the Sellers in Durango can afford to wait until they find a Buyer who will come close to meeting their price, and may not be as motivated to sell as other people around the U.S.

This Spring and Summer has seen a larger number of price reductions in the Durango market than normal for this time of year. So the national real estate climate IS having an effect on Durango real estate. However, even with these reductions, prices are still relatively high, and Sellers are still relatively reluctant to reduce prices or react to lowball offers favorably. The cost to build a home in Durango is higher than in most of the U.S., and due to shortages of skilled laborers, may take longer to construct than a Buyer may expect. These factors combine to create a market that can be challenging to someone new to the area.

If you would like to discuss these issues further, please don't hesitate to call me at 970-946-8843, or email me at m.yoder@bresnan.net.