December 2021 DAAR Numbers

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december 2021 daar numbers december 2021 daar numbersWith the entirety of 2021 real estate market statistics to review, we can see that it was one wild year. Similar to 2020 in elevated sales and pricing trends, we saw another decrease in supply coupled with increased demand. In La Plata County, there were a total of 1420 residential sales.

Looking back at 2021, there was a total 1420 residential sales totaling just 35 more sales than this past year. While that is not much of a change, the median price of homes in La Plata County increased 21.4%, now sitting at $545,000. The average sales price also increased significantly to $652,663, which is the result of 182 homes selling for over $1 million last year. We see a decrease in days on the market again from 137 days in 2020 to only 87 days in 2021. This sharp decrease certainly shows the strong demand not being met with enough supply.

December brought on just 48 total new listings countered by 96 sales. This results in about 50% decrease in months’ supply of inventory. Just 12 of those 48 listings were in town Durango. There were 185 new in town single family listings total in 2021 and 100% of those listings sold! There was even more movement in townhomes with 219 listings and 201 sales. Rural Durango median and average prices also increased about 20% from 2020.

Bayfield saw movement increase in rural areas while less happened specifically in town. For in town single family homes that did hit the market, the market value increased 20% from 2020. All of Bayfield had a total of 227 listings and 216 sales in 2021. The median sales price also rose about 20% sitting at $420,000 for both in town and rural properties. Ignacio saw no listing activity in December, but 7 single family homes were sold. In 2021, there was a total of 60 listings and 50 sales. Ignacio rural properties in particular saw an uptick in activity and value; the median price is now $360,000, 25% higher than 2020.

With 2022 now under way we expect to see another strong year for sellers. As the year continues, we will likely see inventory increase in the spring, but we expect it to be absorbed almost as soon as it hits the market. Interest rates may play a big role in how the 2022 market goes. Interest rates have been rising in recent months, and the lending industry is suggesting that it will continue into March of 2022. They are currently up about 1% from where they were earlier in the year. Our thoughts are that if interest rates continue to increase we will see a decrease in demand.  With this decrease in demand we also expect to see prices level out this year, as the rising interest rate market will have an effect on what new home buyers can qualify and pay for homes. We are also anticipating a decrease in the numbers of homes selling for more than $1 million; we feel the rush of second home owners and people moving to work remotely will slow this year. Lastly, we expect to see more vacant land parcels come on the market. With the increased cost of materials and labor, coupled with builders that are very busy, it is likely some folks will decide to sell their land instead of building.

As the market continual changes, please don’t hesitate to reach out with any questions you may have.