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USA Home Brokers Predict Further Price Decline in Durango



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By : John Cutts    99 or more times read
Prices of homes in Durango, Colorado will experience further declines in the coming months, according to one of the top USA home brokers, the Wells Group. According to the annual housing market forecast of the company, the decline will be caused by buyers gradually reducing the unsold inventory of the city.

Wells Group stated in its annual report that houses in the range of less than $400,000 will be the most likely to maintain their values and are also expected to be the first to experience price appreciation when the housing market starts its recovery. The data from Wells Groupís yearly forecast was presented at Fort Lewis College during an invitation-only event. The brokerage firm announced that the forecast is based on the opinion of the firmís agents and was formulated using market-wide statistics.

According to the broker, home listings in Durango have decreased starting in the 2009 third quarter. This is being interpreted by some Wells Group agents as a sign that home values will eventually appreciate. Agents who predict that the prices will recover have also stated that prices of dwellings in the city have already reached rock bottom and will soon be improving.

Meanwhile, some agents in the brokerage firm are of the opinion that home prices in the area will not be appreciating any time soon. According to them, the median or average price of houses in the city had already risen in the first quarter of 2010 and there is no way that this trend can be maintained.

The area where all agents are in agreement is on the effect of foreclosures on home prices. According to majority of Wells Group agents, foreclosures are causing home prices to decline. They cited 2009 figures when lenders started foreclosure proceedings on almost 300 homes in La Plata County, representing an all time market high. They further added that foreclosures are concentrated in the areas of Vallecito and Bayfield in the last 18 months.

Other significant forecasts made by a number of USA home brokers that are expected to impact Durango local real estate are inventory decline for the second half of the year and sellers exceeding the number of buyers in the market of resort properties. Wells Group also predicted that the best real estate deals will involve houses that cost over $600,000.

Meanwhile, brokers from the local company Coldwell Banker Heritage House Realtors have stated that the movement of residential property prices in the city will depend on the movement of interest rates. They further added that the national economistsí prediction of a six percent rise in interest rate by the end of 2010 should also be taken into consideration. Coldwell brokers also believe that the residential property market will improve, albeit slowly, for the rest of 2010.

The prediction by Coldwell brokers support some Wells Group agentsí belief that the market has already reached the bottom and will soon be on its way towards recovery. It hinges on the belief that once the lowest rung has been reached, the market will experience a steady increase in prices and activity. However, most USA home brokers have stated that if there would be an improvement, it would be gradual and slow and will not create a dramatic rise in housing prices.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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