The Durango Area Association of REALTORS® announces October sales of La Plata County residential properties.

The Durango Area Association of REALTORS® announces October sales of La Plata County residential properties. Normally, the Association only releases statistics on a quarterly basis, but October showed a significant change in the market, and it is important for local residents to be given this new information. The 2009 October residential sales showed an increase in market volume of 2.6% versus October 2008, and the average price increased 5.7% versus last year. The transactions were nearly even with 67 transactions this year and 69 transactions last year. The median price was down 13.8% compared to last year, which suggests greater affordability now, and perhaps explains the increase in market volume.

These October results reverse the trends compiled through September 2009. In the first nine months of 2009, the market has been trending -36% in volume and -30.5% in transactions. The October results may be indicating the bottom of the market in September, as buyers have returned to the market. The inventory levels of residential homes throughout most of La Plata County remains high, which offers buyers greater selection.

We believe continuation of the homebuyer tax credit and it’s expansion dubbed The Worker, Homeownership, and Business Assistance Act of 2009, is good news and will assist in a market turnaround for the remainder of 2009 and the beginning of 2010. The Act has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. The major expansion to the original act has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010. Please contact your REALTOR® for more information.