Is Relief in Sight for Tight Housing Market?

It’s September 9, 2021, and the summer seems to be holding on for as long as it can. Interest rates have remained below 3% for the last eight weeks, and there seems to be a slight calming in the market as kids head back to school, and temps drop at night. This is The Durango Real Estate Update. It’s no secret that Durango is not a secret anymore. License plates from every corner of the US have been seen driving up and down Main all summer. And I for one am ready for the ground to be covered in two feet of snow. The real estate market is showing signs of well, who am I kidding? There’s not really signs of anything right now. It’s all over the place. The market can actually be likened the swings of our daily temperatures right now, because pricing is still red hot, but the number of units sold continue to cool a bit due to buyer fatigue, and continual low inventory. In August, the average sales price of a single family home in the La Plata County, $773,000. Which is a 17% increase from August 2020, and 47% higher than the average price of a home in the county in 2019. In contrast to the sales prices, are the number of home units sold in August, which were down 25% year-over-year. To top it all off, the average percentage sellers are getting of their asking price right now has been 100%, and that’s been every month since March. These single monthly statistics don’t quite tell the full story. So tune in next month for a more robust dive into the Q3 statistics across a few of our different areas and sectors. So what else? Something that can’t be ignored is the fact that the 30 year conventional mortgage interest rate has been below 3% for a solid eight weeks. It’s incredible. CoreLogic says, “With mortgage rates remaining near record lows, the ongoing challenges of persistent demand, and constricted supply continue to put upward pressure on home prices.” Add in deep-pocketed investors, retirees downsizing, higher-wage earners looking to remote work in our area, and you have the quintessential makings of supply and demand economics at work. With several initiatives coming down the pike, such as the Community Revitalization Program from and Colorado Senate Bill SB21-242, known as the Hotel Tenancy Support Program from the state, we could see an influx of grant money injected into our local nonprofits and governments to assist with the affordable and workforce housing shortages we are experiencing. The Hotel Tenancy Act allows the Division of Housing within the Department of Local Affairs to use the Housing Development Grant Fund for rental assistance, tenancy support service programs, and would award grants and loans for the rental, acquisition, or renovation of underutilized hotels, motels, and other properties to provide affordable housing for people experiencing homelessness. There are other programs to address housing shortages and pricing that are on the horizon for higher wage earners as well. So, there are multiple stakeholders and committees working on this right here in Durango right now. And I’m honored to be a part of the conversation. As I learn more, I’ll be bringing you into the fold so that you can be on the forefront of all things real estate and Durango. And the surrounding areas. That’s all the time we have today. And thank you for watching. If you like the information in my videos, please subscribe below and hit that like button for the algorithm, please. If you have any questions or would like to reach me directly, you can always email me at [email protected] or reach out on any of our social media channels, @DurangoBrokers. Enjoy the last bit of summer, say hi to your mailman, and see you next month.

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