Now things are really starting to heat up. We've been saying the market was poised to see the return of opportunistic buyers, since the opportunities are plentiful , and there are definite signs of a market upturn. Just a few months ago it seemed like the doom and gloom was saturating every media story, and now their usual "harbinger of doom" narratives have taken on an optimistic tone with everything real estate. Check out my personal real estate website at http://www.durangomountainrealestate.com/ to see featured articles over the last few months on local and national real estate trends.
Anectdotally speaking this has been my best summer in the real estate business for total sales volume and number of sales. Our friends at Durango Mountain Realty have echoed similar sentiments. Just in the last two-weeks three of my most value-priced listings have gone under contract. All three were in property types (townhomes and a single family home) off the beaten path and just outside of the resort proper. All three were not sales I truly anticipated at this time. All three were priced below replacement cost, and enough buyers have entered the market who have begun to take notice.
In a previous post I waxed on about a property I'd put under contract at over $900k that I felt was perhaps valued at nearly half of its value from previous years. It's certainly been easy to sell, but tough to close. I've now written a third contract on this property. The first two fell out for distinctly different and personal reasons, which underscores the volatility of sales. In fact, only about 80% of contracts make it to the closing table right now. This is sharply down from years past. People are still slightly nervous, but there's a sense that things are settling into more normal patterns.
If you're out there with secure wealth, a desire for a lifestyle at least partially lived in southwest Colorado, and a desire to either diversify or enhance your investment portfolio or your lifestyle portfolio -- there's little question that now is the time to act. The bounce has happened. Distressed and under-priced properties are getting knocked off like so many ducks in the arcade, only this time the next shooter won't get a replenished line of ducks.
Three days ago an article appeared in the Wall Street Journal titled, "Seeking Real Estate Bargains, Try Looking at the High End." It focuses on the northeast and west coast, but the same is true in most high-end or luxury markets in the country. Prices are going up again in just about every other category of real estate after the precipitous fall, but there are still amazing bargains in the luxury and 2nd home markets ($200,000 and up for 2nd home condos, townhomes and single-family homes). And don't even get me started on land. Land has been flatter than the giant pancake that lands on the school in that horrific Cloudy with a Chance of Meatballs that my son dragged me to yesterday. But we're even starting to see sales there.
The temperatures are down in the 60's and 70's during the day and the colors look like the photo at the beginning of this article. Big secret here - now is the best time to visit Durango. Apparently nobody knows, because the roads aren't crowded and you can get a restaurant reservation before 9pm.
