Fewer houses available, low mortgage rates are driving up the cost of housing, but sales of single-family homes was at a record high for January. The commercial office space is another matter. Find out more.
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Welcome to the Durango real estate update.
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My name is Dan Korman, broker
owner of Alpenglow Properties,
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a full service real estate
firm located right here
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in downtown Durango, Colorado.
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When I did my January
recap in February of 2020,
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exactly one year ago today,
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I told you that there were more listings
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on the market than ever before.
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That the median price
for a single family home
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was around $400,000 for
the first time in years.
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And emphatically stated
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that it was the best
time to buy real estate.
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Well, here's a clip from that video.
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If you've been thinking
about pulling the trigger
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on something, it seemingly the
right time to call your agent
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and make that offer.
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The drops in average
and median home prices
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are most likely attributed to
a higher listing inventory,
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continuously low mortgage rates,
a bit of winter stagnation,
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as well as uncertainty
within our geopolitical
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and economic landscapes.
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I think we can all agree it's nice
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to have some normalcy
return to the market,
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but I don't foresee the
lag lasting through March
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as buyers are starting to emerge
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from their winter activities.
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My how things have changed in 12 months.
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Whether you look at the national
or local real estate news,
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there are only a couple
of headlines driving most
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of the conversations.
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National housing inventory
is at an all time low,
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mortgage rates are at an all time low,
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and apparently you should
have invested in GameStop.
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Well, overall, even our local
little real estate market
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landscape is the complete
opposite picture as what I painted
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in that video shot only
12 long months ago.
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Fast forward to 2021,
and our active listings
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are at all time lows,
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down 30% compared to
the same time last year.
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We have the highest amount
of pending transactions
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in the history of the MLS
for the month of January,
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as well as a record breaking amount
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of single-family home units sold
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in Durango year-to-date as well.
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If that's clear as mud, simply put,
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the available housing stock is way down,
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and the number of sales
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are up with pricing reaching
uncomfortable levels
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in some instances.
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I'm hoping that over the
next couple of months,
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I'll be able to come on the show
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and talk about inventory increases
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that would relieve pressure on pricing.
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But until then, let's focus on something
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a little more fun, shall we?
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How about commercial real estate?
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Commercial property leasing and sales
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are important economic
drivers for our county
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and the nation at large.
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There are many different facets
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of the commercial real estate market,
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including but not limited
to owner occupied space,
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long-term leasehold
investments, vacant land,
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business opportunities for sale with
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or without the real estate
attached, redevelopment,
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leasing and the list
goes on and on and on.
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La Plata county's existing
market can be broken
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into four major
categories: office, retail,
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light industrial and multi-family.
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The lack of industrial space here
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in La Plata county is a pain point
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and has been for a while.
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And many local entities have
been trying to alleviate
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since Bodo Park was completely absorbed.
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Given the high demand for
space to bring jobs in sectors
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such as manufacturing, local groups
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like the Economic Development Alliance
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have taken upon themselves
to help identify areas
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that would naturally be a path for growth.
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One of these areas is La Posta Road.
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And with the recent
acquisition of a 90 acre parcel
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formerly known as the Carter property,
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it's looking like some
wheels are set in motion
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for a new industrial park to
be redeveloped down the road.
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Hopefully in the near future.
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Juxtapose to our near
zero feet of industrial
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and warehouse space
available is an abundance
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of office and retail space.
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There is around 200,000 square feet
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of vacant commercial space
in La Plata County right now.
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And that's not including
off-market properties such
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as the building formerly
known as Worldpay,
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or several government
owned parcels scattered
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around the area.
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These vacancies are creating ripples
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in the sectors that actually trickle down
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through small businesses, with one
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of the hardest hit being
the restaurants in our area.
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So it's anyone's guess
as to when we'll be able
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to find that normal vacancy rate again,
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but regardless of these points,
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Durango's extremely resilient,
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and it's been an incredible
path to see locals rallying
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behind the business
community over the last year.
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I can say with confidence
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that I'd rather be nowhere
else in the world right now
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as we all ride out the storm together.
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With amazing opportunities like
workforce housing programs,
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urban renewal authority
development projects,
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and new areas to be
developed on the horizon,
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there has never been a more exciting time
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to be in real estate in Durango.
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It's been a pleasure sharing this month
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and all my past months real
estate updates with you.
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Please feel free to reach
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out anytime via email at
Dan@AlpenglowProperties.com,
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or on any of our social media
handles @DurangoBrokers.
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Stay vigilant in your house
hunts, find that perfect space
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for your business, and
be kind to each other.
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Thank you for watching.
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