Durango Market 2nd Quarter Statistical Update

• The Durango Area Association of Realtors (DAAR) recently released their second quarter statistics. I’ve posted a link to their report below.
  
  http://www.durangorealtor.com/images/Statistics/2ndQtrStat2009.pdf
  
  If you have interest in or already own real estate in Durango, you may want to save this link for the future. That way you can check out the market as much as you like and make your own interpretations.
  
  Here are some things I noticed in looking at these numbers:
  
• DAAR doesn’t have a great way to include fractional sales in their general stats, so both 2008 and 2009 statistics are missing this significant component of the resort market in their general analysis. At the end of 2008 there were more sales in the fractional condominiums, thanks to about $16 million in closings at the new Purgatory Lodge, then in all other categories in the resort market. Similarly, in 2009, there have been seven sales that aren’t counted in the general numbers you see here. In a small market, that’s a big deal, and those numbers would impact the final stats considerably were they to be included.
  
• If you were waiting for the market in Durango to soften or go down, your wait is over. Numbers of sales are off as much as 50% in some categories, and down in all. Though the resort area has proven more resilient then other parts of our market, especially if you include fractional sales, it too is now experiencing the results of more motivated sellers who are responding to more reluctant buyers.
  
• Sales in single-family homes in the resort area are at an insignificant number to draw price conclusions, but certainly the lack of sales and corresponding rise in inventories make for some great buying opportunities in this segment among others.
  These statistics are very similar to the mid-late 80’s in the Durango market. That was the last timeframe that people really look back on here with the thought of, “I wish I would have bought then,” or conversely the stories of their buying brilliance. You can see from the statistics that the slowdown really began here in 2006, though the Durango market in many categories has either continued to remain stable or grow since then. If you’re a buyer, opportunity is knocking. Sellers should probably stay put if they can. Most inventory categories are not vast given the numbers in a small market, and a market recovery, which may be imminent given the performance of markets that tend to lead ours, will in many cases eat up the good deals pretty quickly, and permit pricing to reflect more normalized circumstances.
  
  Statistics are always open to interpretation. I’d be happy to discuss my thoughts with you more. My partner Kris and I have consistently led the resort market in numbers and dollar volume of sales and we were glad to contribute those to the success of Durango Mountain Realty in the last two quarters and prior to then. Our new brokerage is focused on providing you with knowledgeable independent analysis for buyers and sellers throughout the resort and greater Durango area, and we’re now part of the brokerage with the largest market share and exposure of any real estate brokerage in southwestern Colorado. For information on The Wells Group share of the market and organization, you may want to visit http://www.wellsgroupdurango.com/whywells.asp.
  
  Let us know how we can help.
  
  Best regards,
  Chris