Our little corner of the world continues to grow and change, and the first quarter of 2020 is no exception. While we are in the midst of an unexpected pandemic and stay-at-home order as this is written on April 10, 2020, the numbers from January through March are quite strong. April marked a turning point in our market with the governor’s orders prohibiting property showings, the results of which won’t be seen until we are reviewing the 2nd quarter, since it typically takes a minimum of 45-60 days for showing activity to result in actual closings.
What drove such activity in the middle of winter? You may have guessed it already – lower interest rates, coupled with a milder winter than 2019, resulted in an active market starting the year off strong. Both pending sales and closed sales were up across the board, with the exception of the townhouse/condo category. Increases were shown in median price in all areas and categories throughout the County, with the exception of the Durango In-Town category, which dropped 7.7% in median price from $522,000 to $482,000. Lower interest rates (about a 1%change overall in one year) translate directly into affordability.
The Durango Resort Area category is the notable “shining star” this quarter, with a busy early winter season. Land sales are also up slightly but it’s too early in the year to know how this segment of the market will do.
New Listings are up in 2020 from 2019 also during this time frame, but we expect to see a decrease in the 2nd quarter due to current events. Will our season be delayed but recover later in the year, as was the case in 2018 with the 416 fire? It is too soon to tell how the Covid-19 pandemic will affect our local real estate market. Stay tuned for the 2nd quarter data that will begin to tell the story.
Post and stats courtesy of Durango Area Association of Realtors.