Fall is here and already on its way out, as snow accumulates on the peaks, and we careen into the end of year holiday madness! Halloween is two weeks from today, so hopefully you're getting your all inclusive pumpkin fix on, including but not limited to: patch, pie, spice, latte, cookie, candle, soap and whatever else people who love all things pumpkin need in their lives this time of year. As the leaves finish their exhilarating display of golds, yellows and reds, Durango typically slows down for a little bit until the snow starts sticking and the chairlifts start spinning around Thanksgiving. The weather looks dry and warm this week, so make the most of it and get that firewood, drain those water heaters, clean your chimneys and run your furnace. After last winter's snow, check your decks/porches and make sure they're holding up and ready for another winter.
I don't get it! Durango just saw the highest monthly median sales price on record; yet 30yr rates are pinging 8%, we have the most active inventory in 3 years, and solds are highest in the year. What does make a bit of sense is that the annual volume of sales are down compared to last year, and if compared to the year prior, 2021, YTD sales are down nearly 50%, and there's our market in a nutshell. If you're looking to buy, with a loan, and maybe the first time, yeah, I know it feels tough out there, and it is tough out there.
I expect prices to come down over the winter, as they typically do, but I wonder to what degree prices will be affected by reduced buyer motivation, coupled with inventory-that-should-seasonally-dwindle-but-remains-on-the-market? Did that make sense? I feel like I could have worded that better.
The month's supply of inventory remains just over 4, which continues to indicate a neutral market. But if present trends continue: high rates, prices and inventory, we might come out of this winter going into a buyer's market for the first time in 5 years. At least, that's what it could look like on paper. But as present data shows, it might not feel like it, as we can concurrently have high prices and high inventory. But that's a ways off! Let's get through this year and see how things go.
So Sellers, you can still get a great price for a property in good shape, but you (and your realtor) have to work for it.
Buyers, with all the options out there, you (and your realtor) need to keep your eyes open for a "deal". Talk to your lender about buying down points, and how a Seller Concession can help you with that. There's a chance you can turn that 7.8% rate into 6% or even lower. If you're buying with cash, then you're in a great place going into fall and winter to negotiate on properties that have been on the market for a few months.

Trick or Treat!