I am grateful to be able to report "Mixed Results" for Year End, as has not been the case through much of the previous five years. Though there is evidence of continuing weakness in several categories, the data suggests we are beginning to enter a more solid recovery mode. This is good news for all property owners.
Since the recession began in 2006 and the local real estate market was hammered hard, beginning in 2007, we have had to report year-end numbers that offered little encouragement. I can say unequivocally the market has begun to take a turn for the better. Median and Average Selling Prices are up as compared to last year in many categories. For the year I am pleased to report I was the Top Producing Broker within our county based on volume of real estate sold. This was a relatively tough year, and without any major ranch sales, the results were good. The number two agent was a little over $3 million below me. I give credit to the good clients I have had the privilege of working with, the great referrals from friends and associates, the exceptional staff that we have at Pagosa Source, and the other Realtors I have had the good fortune to work with with during the last year.
Our slowest component in the recovery remains the land market, which is to be expected as this category has been the weak link in other geographic market recoveries across the Rockies and within many of the regions most impacted by the real estate downturn. It will take more time for the supply and demand components to restore some sense of balance to this category.
While attending a meeting of the Rocky Mountain Commercial Brokers in Glenwood Springs during October, all areas were reporting improving real estate market conditions, except for Montrose, which remains significantly overbuilt and oversupplied with residential and commercial properties. Our market has been somewhere in between the conditions reported for Montrose and those of the other mountain communities, such as Glenwood, Steamboat, Vail, Summit County, Telluride, Durango, Alamosa and Salida. Finally, we are moving in the right direction and the market stats indicate we are establishing a firm foundation, which is needed to support gradually strengthening values for homes and land within the area.
This year I have purposely left out any in-depth discussion of the commercial market. This segment is extremely fragmented and difficult to summarize because of the wide range of variables impacting the market and individual transactions. I maintain a sizeable amount of transaction data for the commercial market as I have been involved in a large percentage of the commercial transactions over the last three years. I am often consulted by appraisers from outside our market that are doing commercial property appraisal work here.
The number of units closed across all real estate categories is up as compared to last year, though the Total Dollar Volume is down 6.7%. $105,630,866 vs. $113,278,117. Our MLS shows a total of 538 Closed Sales versus 507 for last year, an increase of 6%.
Read Part Two...