As 2025 begins, we reflect on the insights from 2024’s statistics, market trends, and conditions to guide our approach for the year ahead. The La Plata County real estate market is shaped by a blend of local and global factors, creating a dynamic and ever-evolving landscape. Each year, we combine this information with our historical knowledge and experience to anticipate what may lie ahead, while acknowledging that the only true constant is change.
La Plata County
The La Plata County real estate market continued to demonstrate resilience and stabilization in 2024, moving further away from the rapid appreciation seen in 2020-2022. Looking back, our 2024 predictions aligned with much of what we observed: continued low inventory, modest price appreciation, and little change to interest rates-though we wish we’d been wrong about that last one!
Here’s what the year-end data tells us:
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The median home price increased 3.5%, from $638,000 in 2023 to $660,000 in 2024. This level of growth is more stable and sustainable over time.
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Total home sales rose from 877 sales in 2023 to 885 in 2024 (less than 1%). Though small, this uptick is significant given that home sales had been declining annually since 2020 due to limited inventory.
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Interest rates remained in the high 6% to 7% range all year. Higher rates create two key challenges for the market:
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Buyer affordability: As interest rates rise, borrowers are forced to lower their budgets, which is challenging in a higher-priced market like ours.
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Seller hesitation: Many homeowners with sub-3% interest rates opt not to sell, as upgrading or moving means a higher interest rate and higher price point. This phenomenon significantly contributes to the ongoing inventory shortage.
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The average days on market remained relatively stable at 95 days in 2024 compared to:
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85 days in 2023
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86 days in 2022
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87 days in 2021
This consistency reflects a steady demand for homes, even as rates and inventory fluctuate.
In-Town Durango
2024 was a strong year for the in-town Durango real estate market:
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Total home sales increased from 236 in 2023 to 261 in 2024 (an 11% increase).
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The median home price increased slightly, from $647,000 in 2023 to $655,000 in 2024 (a 1.24% increase).
The in-town market continues to experience high demand. A key indicator of this is that, on average, homes in town are selling for 98% of the listing price. This demonstrates that when homes are priced correctly, sellers typically do not need to make significant concessions on their asking price.
Bayfield
Bayfield also had a strong 2024, with notable increases in two key areas:
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Total home sales jumped 18% from 50 sales in 2023 to 59 sales in 2024.
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The median home price rose 7.3%, from $460,250 in 2023 to $494,000 in 2024.
As home prices continue to rise across La Plata County, Bayfield remains an attractive option for buyers seeking more affordable alternatives to Durango. There are multiple projects in the works with the Town of Bayfield, including Pine River Commons, a new workforce housing development.
Our 2025 Predictions
We anticipate that 2025 will closely mirror 2024, with modest growth in the market, both in inventory and total sales; we anticipate less than a 5% increase for each. If interest rates dip into the 5% range, we expect a surge of activity that could drive a notable rise in home prices. Otherwise we predict minimal fluctuation in median home prices and days on market.
Key Market Impacts on the La Plata County market in 2025:
- Homeowners insurance challenges. Securing homeowners insurance, once a straightforward step in the home-buying process, has become more complex and costly. This nationwide issue has been exacerbated by recent events such as the Los Angeles fires and flooding in North Carolina. Large nationwide insurance companies are withdrawing from certain markets, declining policy renewals, and raising premiums at extraordinary levels. This issue deserves an entire blog all to itself, so will send out one on insurance in the coming weeks. Colorado is rolling out the Fair Access to Insurance Requirements (FAIR) plan later in the year, providing a last-resort option for homeowners unable to secure coverage otherwise. Unfortunately, this is a situation that is likely to get worse before it gets better.
- Higher interest rates will continue in 2025. Despite the Federal Reserve easing rates, mortgage rates remain elevated due to broader market forces, including inflation concerns and shifts in investor demand for mortgage-backed securities. We anticipate rates will stay in the 6-7% range, which will contribute to a steady market without dramatic fluctuations.
- Limited new construction inventory hitting the market. The ongoing lack of new construction, particularly multi-family units, continues to impact housing availability and affordability. While new developments are slow to come to fruition, progress is being made. In Durango, 22 units were added with the Animas City Park Overlook Townhomes and the Best Western apartment conversion on Highway 160 W created 72 new units. Bayfield is also adding new workforce housing inventory with the Pine River Commons development. These projects are essential to supporting the growing needs of our community.
- Durango continues to be an affordable resort town. While affordability is relative, Durango remains a good value compared to Colorado’s premier resort towns like Telluride, Aspen, Vail, and Steamboat. Its unique charm, exceptional quality of life, and vibrant community make Durango a place where people want to stay. However, this strong demand further limits inventory, making the addition of entry-level housing even more critical to preserving the magic that sets Durango apart.
We are deeply grateful to assist clients across all sectors of Southwest Colorado real estate-whether you’re a first-time homebuyer, a downsizer, a developer, a local, or someone new to our beautiful area. Serving this incredible community we call home is a privilege we don’t take lightly. If you are planning to list your property or search for your next one, we are committed to providing you with trustworthy advice, clear guidance, and consistent communication every step of the way. Here’s to a wonderful and fulfilling 2025-please let us know how we can assist you on your real estate journey.
