Another month closer to summer, and once again I've started this market update to falling snow! We're pretty much at 100% of our snowpack, so it's shaping up to be another nice Summer! I've got a lot to cover on this one so I'll get right to it. Like a mullet, I'll lay it out with business first and the fun second:

PROPOSED NAR SETTLEMENT
I guess it's about time to speak to all that fuss going on with the proposed settlement terms announced last month. For starters, as a dues paying Realtor with that fancy, tiny circled r after it, I didn't know it was coming. None of us did! We found out at the same time and the same way you did, waking up to the headlines. So understandably there's some confusion out there; the dust is in the air and it's far from settled. As of right now, nothing has actually changed yet, except the perception, thanks to some pretty sensational headlines! I have some clarifying thoughts for today, but they might change tomorrow as we continue to process the implications and potential ripple effects.

Being in Colorado, we've already met a handful of these proposals, so not much really changes. Buyer's Agency Agreements have always been required by the state. Toward the end of last year, my MLS changed its language from requiring a minimum of a $1 cooperation fee (Buyer's Agent commission) to $0, it's only been at least $1 all along! Buyer's Agent's commissions have been displayed on our MLS since I started 8 years ago, and the dollar amount for the involved agents is listed as a line item on Buyer/Seller Settlement closing Statements. (I don't even know what lenders make!) And the big one: Buyer's Agent's commissions can't be displayed on MLS. They're not getting slashed, cut, eviscerated, or snapped away- they still exist, they just can't be shown on the MLS or what it syndicates to. That's it...!

There are still a few good reasons why Seller should still pay the Buyer's Agent, but it doesn't look like I need to get into that yet. So far, I don't see how any of the changes benefits the buyer. (Remember, using a realtor has always been optional. And Colorado is a caveat emptor state.) Of the 242 active residential listings in La Plata County, only one is offering $0 to the Buyers Agent. (Two are offering over 3%!) It's a new listing on the MLS that used to be a FSBO. The average Buyer's agent commission on all the active listings, is 2.57%; 13 of those active listings are paying less than 2.5%; the average Buyer's Agent commission on those is 1.9%, at an average list price of $6.3M.... I don't expect to hear any complaints from the Buyer's Agent's on those transactions.

FUN STUFF
Now that's out of the way- Spring activities in Durango are finally here!
  • The annual closing day pond skim at Purgatory is this Sunday, the 14th.
  • Durango Bluegrass Meltdown gets down on the weekend of the 19-21st.
  • The 4 Corners Boat Swap will be held over the weekend of the 20-21st, with the return of the cast iron chef cook off!
  • The Durango Wine Experience features two days of wine tastings on the 26 and 27th.
  • And last but not least, the DEVO Bike Swap is on the 27th, and a great opportunity to make some room in the garage so you can fill it right back up again.
 
 

Looks like our market is waking up! I still tend to reserve prognostication at this time of year, still watching for emerging trends to help set realistic expectations for folks going into our active season. The biggest change I'm seeing right now is the hard 180 turn the DOM took. So much for that streak!
Was February a fluke with pricing? Maybe not, and going off the logic there, we might be on the verge of another bump to median sales prices for this month. Feb was the 2nd time in the history of my MLS keeping records that more condos were sold in Durango than stick built homes, the last time being, interestingly enough FEB13. Not only were more condos sold, but almost 1/5th of the sales in Feb were Modular/Manufactured, which would pull the overall sales prices down. Jan and last month saw 0 Modular/Manufactured sales, and a higher amount of stick built sales, which contributed to pulling those median sales prices back up. Speaking to stick built homes, Durango saw an increase of 120% in stick built homes go under contract last month from the previous month. I have a feeling the ratio of stickbuilt homes that sell is going to correlate to a higher sales price.

We're still "low" in inventory compared to pre-covid, but it's nice to have a few extra listings on the market at this time of year. Without the handful of rate cuts that were being considered a couple months ago, I don't expect to see a surge in inventory this Summer, but it would be nice to break that 250 mark. More options should create more competition for folks selling, so maybe we'll see a healthy tapering of sales prices that many in our market are craving.  Considering where our prices, rates and inventory are at, I'm a little surprised that we're still seeing so much market activity. I thought the former would have had an affect on our market by now, but things are still rolling along, especially so for what's normally a frozen first quarter.

Happy spring, and get those turns in while you can, river season is upon us!