As we track and report on the La Plata County real estate market, we often note the influence of “outside factors”. These are typically elements that originate beyond our local area - whether at the state, national, or international level - but still have a significant impact here. They can trickle down and shape our market in various ways.
Mortgage Rates
As a function of the United States federal government and broader economic conditions, national mortgage rates are influenced by factors such as the bond market, inflation, and overall economic health. While rates dropped below 3% in 2020 - 2021, they’ve risen in 2025 to over 6.5 - 7%. Lenders continue to see strong application activity, which is a positive sign for all markets. As mortgage rates fluctuate, buyers’ purchase power is directly impacted and we definitely see that in our current market; lower rates stimulate activity, while higher rates limit buyer participation and reduce overall sales volume.
Home Insurance
Home Insurance has become an increasingly hot topic over the last decade or so, largely due to the rise in natural disasters. Whether it’s wildfires, floods, tornadoes, earthquakes, or hail, these natural disasters can cause widespread property damage, which in turn leads to increased premiums and stricter underwriting guidelines. Not only are premiums increasing, but some areas are becoming more challenging to insure altogether. This affects not just new homeowners but also existing ones, as well, with many seeing unexpected changes to their coverage. While home insurance isn’t always required, it is mandatory if a buyer is financing their home, and highly recommended in all cases.
Property Taxes
Every two years, La Plata County reassesses property values, and this year many owners saw significant increases, resulting in higher property tax bills. While the recently approved 9-R School District bond also added a small bump to some tax rates, the primary driver behind this year’s increase is the rise in assessed property values. Tax rates vary across the county depending on applicable mill levies, but overall, property taxes in our area remain low compared to many parts of the country. Still, these increases can impact household budgets for both existing homeowners and prospective buyers.
Weather & The Seasons
While our seasonal patterns are fairly predictable, weather plays a role in real estate activity. Typically, inventory begins to increase in the spring, with momentum continuing through summer - usually the busiest time of year. Activity begins to taper off in fall and slows significantly in winter, especially during snowy months like December through March. However, in years such as this one, when the winter is mild, buyer and seller activity often picks up earlier than expected.
Other Factors to Consider
Broader micro- and macro-economic conditions also influence our local market. Currently, these include, but aren’t limited to, job insecurity, uncertainty around tariffs, inflation, interest rates, and the stock market. Additionally, local building costs and permit processes are impacting new construction and limiting inventory growth.
The Durango and La Plata County real estate market tends to experience less dramatic market swings compared to other areas in the state and country, thanks to our desirable Southwest Colorado location. Whether you’re buying or selling, we’re here to help you make sense of the market - feel free to contact Max and Deven at The Durango Team.
