As is my custom, I've compiled a complete analysis of the residential sales data for all Durango real estate (that would be for all of La Plata County) from January 1 through September 30 of this year as well as the same time period in the year 2008. In addition, my analysis breaks down the price brackets by $200,000 increments, which makes it easier to understand it allows you the public to look at your specific price range.
Overall the total residential dollar volume in 2009 versus 2008 has dropped 37.05%. The average residential sales price, however, only declined by 8.2%; while the median sales price declined 10.33%. You can see by these figures that values are holding reasonably well... it's just that the dollar volume is down significantly. Those numbers seem to reinforce our concept that Durango Colorado real estate has been, and is still a good place to invest your money.
The busiest price bracket is from 200,000 of $400,000 where 219 units sold this year compared to 293 last year. That is a decline of 25.26%. The hardest hit price range is the $800,000-$1 million price bracket. That is almost a no man's land with very few buyers closing on properties in that price bracket. Last year 17 homes that sold, this year only seven have sold and their average days on the market this year has risen to 402 days. Somewhat oddly, I would think, in 2009 more homes over $1 million and sold than in 2008; granted it's only one more than last year, but it's the only price bracket where there was an increasing number of units sold.
One of the items that I analyze is where are people buying? Durango in town? Durango rural? Bayfield in town? Or Bayfield rural? Condos at the resort? Per each price bracket, I have the answers to those questions.
My complete Excel spreadsheet...in an easy to view format...for Durango real estate sales analysis is located on my website. Click the following link to take you directly to that spreadsheet: Durango Real Estate Sales Analysis
If you would like to discuss this analysis in more detail or if you are ready to get some help in your search for Durango area real estate, please give us a call and we will be more than happy to take care of your needs. My direct line office number is 970-375-7007.
Tuesday, October 20, 2009
Tuesday, October 06, 2009
$8,000 Tax Credit..Is It Affecting Lower Priced Sales?
What affect has the $8,000 first time home buyer tax credit had on the lower priced real estate market in Durango and throughout La Plata County? As many of you know, the Durango real estate market has certainly been affected by the drop in the national economy for the last couple of years. Durango Real Estate Sales Statistics. Overall sales volume, depending on the specific area of the county and price range, has dropped roughly 40%. I recently reviewed the residential sales for the last 120 days in this County and came up with the following sales statistics. Please note this is for homes/condos only and only sales that occurred within La Plata County, so that would include Durango, Bayfield, Ignacio and the rural areas around each of those towns.
In analyzing the data it is clear that the “sweet spot” is $300,000 and under. It is interesting to note that nearly 70% of all the sales have come from homes priced at $400,000 and under. When compared to the available inventory of homes note the large difference in the percent of sales versus the number of properties available in that particular price range. The buyers are certainly gobbling up the lower end price range of homes while the higher priced properties are just sitting almost stagnant on the market. First-time homebuyers tend to buy in that lower price range, so these numbers would certainly seem to suggest that the tax credit is having an effect here for sure.
In order to truly come to a correct conclusion, I feel it would be necessary to compare the sales in 2008 versus the sales in 2009 for that same time frame and price brackets. The chart below uses all residential sales in La Plata County from June 1 through October 1 of the appropriate year.
This chart even more graphically demonstrates the impact of the tax credit on homes priced $300,000 and under. Look at the huge differences in the bottom three categories. It is clear that the product mix of what is being sold is $300,000 and under and there is very little doubt in my mind that what is driving that is the $8000 first time home buyer tax credit.
There are still opportunities out there to obtain that credit, but window of opportunity will soon be closed. Generally speaking, it takes 30 to 45 days to get a loan approval... could be done faster with A+ credit and good steady employment... so it's pretty clear that somebody needs to be under contract on a home of their choice by mid-October or they will quickly be out of luck.
Team Lorenz has two excellent buyer specialists whose only function is to work with buyers and help them find properties. If you're one of those people seeing the window of opportunity getting smaller and smaller, please give us a call today and would be tickled to get you into your first home. Buying Durango real estate can certainly be a daunting task, but with her many years of experience in successful closing of thousands of transactions, we will take you through the process and hopefully have it be into an enjoyable one. To learn a little bit about our Team, click here. Team Lorenz
In analyzing the data it is clear that the “sweet spot” is $300,000 and under. It is interesting to note that nearly 70% of all the sales have come from homes priced at $400,000 and under. When compared to the available inventory of homes note the large difference in the percent of sales versus the number of properties available in that particular price range. The buyers are certainly gobbling up the lower end price range of homes while the higher priced properties are just sitting almost stagnant on the market. First-time homebuyers tend to buy in that lower price range, so these numbers would certainly seem to suggest that the tax credit is having an effect here for sure.
In order to truly come to a correct conclusion, I feel it would be necessary to compare the sales in 2008 versus the sales in 2009 for that same time frame and price brackets. The chart below uses all residential sales in La Plata County from June 1 through October 1 of the appropriate year.
This chart even more graphically demonstrates the impact of the tax credit on homes priced $300,000 and under. Look at the huge differences in the bottom three categories. It is clear that the product mix of what is being sold is $300,000 and under and there is very little doubt in my mind that what is driving that is the $8000 first time home buyer tax credit.
There are still opportunities out there to obtain that credit, but window of opportunity will soon be closed. Generally speaking, it takes 30 to 45 days to get a loan approval... could be done faster with A+ credit and good steady employment... so it's pretty clear that somebody needs to be under contract on a home of their choice by mid-October or they will quickly be out of luck.
Team Lorenz has two excellent buyer specialists whose only function is to work with buyers and help them find properties. If you're one of those people seeing the window of opportunity getting smaller and smaller, please give us a call today and would be tickled to get you into your first home. Buying Durango real estate can certainly be a daunting task, but with her many years of experience in successful closing of thousands of transactions, we will take you through the process and hopefully have it be into an enjoyable one. To learn a little bit about our Team, click here. Team Lorenz
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