Last week The Wells Group hosted the Annual Real Estate Forecast. This event compiles data and predictions and occurrences for the La Plata County real estate market. We want to share some of the highlights of the forecast, as well as the link so you are able to view the graphs and charts.
Bob Allen shares his economic data annually in our forecast, and his charts are extremely helpful in breaking down various segments of the La Plata County economy. He noted 2019 real estate remained healthy, although there was softness in the vacant land sector. The total number of transactions was down compared to 2018, likely due to higher mortgage interest rates. Median home prices rose, which created an affordability gap but caused Bayfield real estate to boom.
One of our traditions is to share annual predictions, and we will share some of the top ten predictions for 2020 from The Wells Group. As of the forecast, the expectation is for the market to pace similarly to that of 2019. We expect to see more investors, as well as low interest rates through the year, which will likely draw more Millennial buyers. The cost of construction still impacts the amount of inventory coming onto the market; also, aging homes will need to appeal to new buyers. Colorado is the #2 state in the nation for retirees; the forecast data notes the average move is every 13 years. Lastly, of course, the Coronavirus will likely impact the market, but it is too early to anticipate how this will occur.
This is a fantastic resource to understand our local economy, and the graphs elaborate on a variety of aspects (labor force, airlines, tourism, hotel occupancy, natural gas, Fort Lewis College enrollment, and more). We encourage you to take a look, and let us know if you have any questions on the state of the La Plata County economy or real estate market. Here is the link: https://wellsgroupdurango.com/forecast/2020-durango-real-estate-forecast/