Durango real estate market opinion Spring '09

Durango, Colorado, although not impervious to the swings of the national economy, does enjoy a certain isolation or dampening to the extreme lows that major urban centers may experience. This latest economic downturn, fueled to a large degree by the rampant development of large residential subdivisions to provide government edicted house ownership to all Americans regardless of their financial qualifications, was ripe for a crash. Seas of foreclosed upon, vacated homes in these urban areas have greatly impacted those real estate markets and resulted in greatly reduced residential values. We in Durango enjoy a real estate market influenced to the largest degree by a hunger for recreation and/or a clean healthy environment to raise children or retire. Our market is influenced to a larger degree by the willingness or capability of individuals to come to our area and realize a dream whether it be in a new primary home or a second getaway to come and escape periodically from the rigors of a faster paced urban world. Sales over this last year have slowed tremendously here, as they have across the nation, however, I feel that we shall not experience losses in value to the extent that the urban properties have because we have a limited availability of properties geared more to our resort country lifestyle than to housing a large urban populace. Although we are seeing a number of very motivated sellers in the Durango area offering properties at greatly reduced prices, this is not necessarily representative of our market in general. There are more owners wishing to sell who are content to wait until the economy turns for the better. Contrary to the urban centers where huge subdivisions of foreclosed upon homes need to be absorbed at drastic reductions prior to a real estate market value recovery, we enjoy a limited availability market. In 2008 the volume of real estate business in our area declined, however median price increased. This indicates that, on the whole, value has been holding. This being said, there are at the moment a number of very attractive purchase opportunities available in our area offered either by owners harder hit by the economic downturn or otherwise motivated by personal reasons to move on. As those aforementioned urban subdivisions sell, more likely than not, in bulk to investors seeing an opportunity to resell at a profit in a growing recovery those markets will improve and confidence will grow. I believe that Durango will respond to this more quickly with increasing activity and the “bargain” properties will be absorbed relatively quickly and we shall see our prices recovering and climbing more quickly than the urban areas. In my mind, now is “opportunity time”
The Durango area represented a very undervalued market when compared to other Rocky Mountain resort communities prior to the economic downturn. This, I believe , will enhance interest in our area as recovery grows. Durango is a healthy, active, country community with numerous outdoors as well as cultural activities to enjoy. It represents a dream to many. It is a “go to” place for young families to raise their children in a safe and wholesome environment. It also represents a place for older “kids” to come and enjoy their lives as they have been intending to all these last years while building business or estate. I feel this latest economic stress will have many evaluating their lives and how they wish to live them. Now is the time. The opportunities that exist today may very well be gone tomorrow. We do not have huge subdivisions of properties to choose from, but rather “one of these” and maybe “two of those”. It will not take long to absorb the opportunity buys of today.