January 27, 2010
4th Quarter and 2009 Yearly Statistical Analysis
The 4th Quarter of 2009 had a greater number of transactions, higher volume, and a higher median price than the 4th quarter of 2008. The statistical data is suggesting a likely bottom of the real estate market in La Plata County occurred in September of 2009. For the County, the residential 4th Quarter transactions were 175 in 2009 versus 142 in 2008, a 22% increase in sales. The median price was $336,000 in ’09 versus $332,750 in ‘08, a 1% increase in the median price. Durango single family homes in the City of Durango, Durango Country homes and Bayfield In-Town homes showed the greatest increases. Some of the 4th quarter results can be attributed to the “First Time Homebuyers Credit”, the historic low interest rates, and buyer recognition of the bottom of the market. The results for the month of December were even more significant, with the number of residential sales up from 33 in ’08 to 54 in ’09, a 63.6% increase, and the median price was up 1.3%.
2009 MLS Data Yearly Statistical Analysis
The annual La Plata County residential sales show the mixed results, as the first 9 months of the year had a 30% decline in transactions, followed by the 22% increase in the 4th quarter. The median price showed the same mixed results, as the median price declined by 10% in the first 9 months, and improved by 1% in the 4th quarter. Durango Country Homes had the lowest change in transactions, but the median price was impacted by -13.4%. Durango In-Town homes had less of an impact on median price with a –3.4% change, but the sales were down 23.8%. Land sales and Commercial sales remained soft.
As we transition into 2010, there is anticipation that the first quarter will continue to show similar results to the 4th quarter of 2009. The “First Time Homebuyers Credit” of up to $8,000 has been extended until April 30, 2010, and can be continued until June 30, 2010 if a home is under contract by the end of April. Repeat buyers who have lived in their homes the last 5 years are eligible for a maximum of a $6,500 tax credit. The interest rates are at near historic lows, and there are a number of safe mortgage products available. The home values are more competitive than past years, and there is sufficient inventory of homes for buyers to choose.
For a more in depth analysis or further information on La Plata County area MLS Statistics please contact me at 970-769-5001 or by email david@chartergroupdurango.com
Gail Speer said,
January 30, 2010 at 9:23 pm
The statistics definitely bring a sigh of relief. And in other areas, reasons for being hopeful are being seen as well. The very difficult part of this real estate recovery is that it is imbedded so deeply in the recession. People have to have jobs to afford a house, they can’t leave a job (move or relocate) until they have a new one, and/or will lose their health insurance.
While most people are very relieved that the stock markets have shown a significant recovery in 2009, it remains jittery, and analysis of corporate inventories and revenues suggest a rough ride for 2010. This could translate into slowing the recovery of the second home market. (No stock gains to move into the real estate sector.) The tax credit has been crucial, but the caveat to that is that it ultimately raises the deficit. So, it is a good thing or a bad thing? Thankfully, market economics is at work. If the price is right, the buyers will come back. It does appear that there are enough good cards on the table to make it work.
Rangey