The statistics comparing the prices from the first three quarters of 2020 to 2021 were released recently. Overall, median prices of homes in the entire county increased almost 25% from $422,500 to $527,100, with the number of sales increasing 25% from 465 to 643. If there were more homes available for sale this year, the number of sales would have been even higher with the price percentage increase somewhat lower. That darn law of “supply and demand”.
The lack of inventory is particularly acute in the Durango “In Town” area; the median price increased from $499,000 to $650,000, a 30% increase; the number sales only increased 16%; this number was about half of the county sales increase because of the smaller number of homes available for sale. There is very small amount of developable land in the city limits and new construction is at the high end of the price range, so the prospects for lower or stabilizing values are not good, unless there is a significant decrease in demand.
The number of sales in the area surrounding the Durango City limits was up an incredible 57%, from 146 to 230 sales. The median price increase 19%, from $526,250 to $625,000. There were more sales because there was more inventory, which also caused the median price to about 2/3 of the In-town increase.
Durango Area condos and townhomes median prices went up 18% from $330,000 to $390,000. Sales increased from 78 to 108, a 38% jump. The demand for these more affordable homes remains strong as many buyers are priced-out of the free- standing home market.
Bayfield in-town median home prices increased 17% to $385,000; sales dropped 26%, from 35 to 26. The reduction in sales was due to a lack of inventory within the city limits. The median price of homes outside the city limits increased 21% to $410,000, with the number of sales increasing 38% from 53 to 73. More homes available for sale outside the city limits facilitated more sales.
The Durango Mountain/Resort area was underpriced up until the end of 2019; it got to the proper pricing level during early 2020 and has skyrocketed since. The median price for free-standing homes in this area were up 43%, from $810,000 to $1,160,000; a $350,000 increase! Sales increased from 13 to 18. There were several very high-priced homes that sold which heavily influenced the average because of the small number of sales. Condos and townhome median prices went up $218,000, a 95% increase from $230,000 to $448,000; the number of sales increased from 31 to 70, a 126% increase. There were several new and existing high-end homes in this category that sold, which contributed to the steep increase. However, I’ve also seen very large increases in the low and moderate end of the market.
You can view the spreadsheet with the median prices over the past three years by clicking this link https://durangorealtor.com/market-stats/