Following the October residential sales results in La Plata County, I rendered an opinion regarding the impact of the Gold King spill. We now have the November results, and the extra month provides additional information that further supports the impact of the Gold King spill on La Plata County’s residential real estate market.
A comparison of Archuleta County to the east and La Plata County residential sales for this year and the same period last year shows home sales in August and September were not highly impacted because contracts were in place prior to the national media attention in early to mid-August.
The trends from January through September show the strength of the La Plata County market, and the same is true for Archuleta County.
Note the differences during October and November. Archuleta County residential real estate posted gains of 17.1 percent in October and 25.9 percent in November, while La Plata County real estate sales fell 33.3 percent in October and 9.7 percent in November.
Archuleta County is a good comparison for La Plata County because it has a similar lifestyle, with a river running through town, mountains and skiing.
The profile of home buyers desiring primary homes and second homes seems comparable as well. Both counties are impacted by the Texas and Oklahoma market, which is dependent on the oil and gas industry.
In my opinion, this is definitive proof of the effect of the Gold King spill.
There is good news, though.
The percentage of residential real estate sales lost in November was not as great as October, and in November real estate agents have seen a resurgence in buyers looking and contracting for property. It raises hope that the Gold King spill’s effect on the real estate market will be only temporary, and people interested in buying a home in La Plata County will continue to see the beauty of our area and that our lifestyle was not unduly impacted during the spill.
It is fair to say that most residents are not concerned about it, and it seems like it is in the past.
Don Ricedorff is a Realtor at The Wells Group in Durango, and a past president of the Durango Area Association of Realtors. He can be reached at don@durangorealproperty.com.
