NEW HOME PRICES: The Commerce Department reported that the median price for a new home sold in September declined by 9.7 percent from September, 2005 providing evidence of the slow down in the once booming housing market.
It is important to recognize that, here in Durango, we do not have the mega tract builders; Pulte, DR Horton and the like. In major markets these huge corporate builders create large inventories of product. When sales begin to slow, price adjustments and sales incentives reflect a downward turn in pricing. The resale market cannot compete with new home purchase incentives offered by builders. As a consequence, the housing market, overall, becomes depressed until inventories are depleted.
Locally, our inventory of new spec homes is relatively small with the majority being in the Bayfield developments of Dove Ranch, Mesa Heights, Sunrise Estates and Forest Lakes. Our builders are, by and large, sole proprietors who are active in the actual construction process. The product they produce is generally high quality with more of a custom look and feel. While our market has slowed due to the problems in the major housing markets, it doesn't look our prices are coming down measurably.
Learn more about Durango real estate at http://www.HomesInDurango.com and http://DurangoRealEstate.biz
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