La Plata County’s housing market was in full recovery mode in July, and not even rising interest rates or an environmental accident are expected to put much of a damper on it.
“The La Plata County housing market has fully recovered,” declared Don Ricedorff, a broker with the Wells Group.
The latest figures from the Colorado Association of Realtors confirms Ricedorff’s assessment.
The association’s July numbers for the Southwest region, which includes La Plata County, shows that the median sales price for single-family homes rose 7.9 percent in July to $367,000, compared to the year-ago figure.
That number for homes in Durango was even more impressive, jumping 10.7 percent to $415,000 in July. In July 2014, the median sales price was $375,000.
Home sales also have bounced back from levels last seen before the Great Recession, he said.
“The number of home sales is also above the 2006 levels with 640 homes sold in the first seven months of this year versus 606 in 2006,” Ricedorff said in an email. “The Durango market, both in-town and rural, are both above the 2006 market.”
There are some potential obstacles ahead for the Durango-area’s housing market, though.
This month’s accidental release of contaminated wastewater from the closed Gold King Mine near Silverton not only spread heavy metals into the Animas River, it also dumped toxic PR across the country about Southwest Colorado.
“We have fielded a number of questions and concerns from across the country, some from clients and some from friends wanting an update on Durango,” Ricedorff said.
The Wells Group has not had any sales canceled because of the incident, but Ricedorff said he has “heard of some failed transactions in the market” since the Aug. 5 accident.
He is confident, however, that any negative impact on sales will be short-lived.
“Most people in Durango are confident that it is short-term oriented and it will not have a long-term effect.”
The Fed has been signaling that it could begin raising interest rates – which will push mortgage loan rates higher – as soon as next month.
But Ricedorff is also confident that an increase in interest rates by the Federal Reserve won’t slow the local market – at least substantially.
“Increases in future interest rates may cause some sticker shock and may affect affordability for some, but the Federal Reserve is intimating they will make small adjustments and make sure the economy is strong enough to absorb the changes,” he said.
July’s real estate numbers showed improvements in most of La Plata County’s sub-markets.
An exception was the Bayfield rural sub-market, which saw its median sales price drop 11.7 percent in July to $226,900. That compares to $257,000 in July 2014.
Ricedorff said the Bayfield rural market has still not recovered to its pre-recession levels, with just 57 home sales so far this year, compared to 71 at this time in 2006.
The Bayfield market itself, however, has been bouncing back. The median sales price there rose 5.8 percent in July to $270,000, compared to $255,250 a year earlier.
July’s housing market at a glance
Single-family home Months supply Townhouse-Condo
median sales price of housing inventory median sales price
Durango in-town 415,000 4.2 255,000
Durango rural 414,250 9.9 359,875
Durango Mountain 612,000 21.5 102,000
Bayfield in town 270,000 3 NA
Bayfield rural 226,900 9.2 NA
La Plata County 367,000 8.7 266,250
Ignacio 132,000 3.5 NA
Ignacio rural 172,000 17 NA
Statewide 310,000 3.5 215,000
