Inventory has dropped to 452 homes on the market in the area, which amounts to a supply adequate for 1.89 years.  A normal market has six months of inventory.  For the period of October 1, 2008 to Sept. 30, 2009, inventory was  485 or 1.97 years.  Most people think it is a buyers’ market.  However, in the category of homes between $85,000-135,000, it is a sellers’ market.  In all other price categories, there’s a good selection, and it is a great time to buy.

The median sales price in Salida bounces around, for September it was up to $277,500.  By using the median as the measure, it removes the extreme low and high sales, and, as expected, half of the sales are under $260,000 and half are over $260,000.  There were even three sales over $500,000 .

Year to date sales in the five-county area for all types of properties totaled 419.  This includes residential, homes with acreage, commercial, land, farm and ranches.  The area covered is Chaffee, Park, Lake, Saguache and Fremont counties.  For the same period in 2008, sales were 581, in 2007, sales were 867 and in 2006, sales were 810.  There’s lots of catching up to do!

Good news!  Inventory is down.  In September, 1952 properties were for sale, compared to 2096 in August and 2226 in July.

Few people comment about these real estate reports.  Are they of interest?  Are there other topics you’d like to know about.  For example: What is the MLS?  How does the assessor determine the value for a property?  Is it accurate?  Is it current?  When are sales the highest?  Lowest?  When is a good time to buy?  Sell?  Who is buying property in Chaffee County?  Where are they moving from?

Let me know what subjects are of interest to you.

This two-story contributing brick building occupies one of Salida’s most eligible corners at 102-104 North F Street. Built in 1886, the Salida Weekly Mail wrote: “…we admire the push and pluck of Salida. She is coming up out of her ashes. She is building up the place made waste by the destructive fire of last spring, building fine substantial business blocks, of brick, where before there stood wooden rows to invite the fury and greed of devouring flames. Among these and almost completed is the bank block of Mr. W.E. Robertson,” president of Chaffee County Bank, who was the first occupant. It later housed a stationery and insurance company, drugstore, barber shop, restaurant, and “a first-class gentlemen’s resort” (saloon). Its captivating features, which include unique beveled corners, saw tooth molding, scroll brackets and column/pilasters topped by ornamented capital structures, have been neglected for a decade or more. Local investors recently purchased this gem and have begun renovation. What’s next for this beauty?  For more information, contact Leslie Walker at www.buysalida.com.

In Salida, housing sales from January through May 2009 dropped 39%.  Year to date sales totaled 46 homes with  a median sell price of $287,000 compared with the same period in 2008 when 76 homes sold at a median sell price of $263,450.  Total sales volume also dropped.

Salida  home sales in May 2009 were 5 compared to the month before when 14 homes sold, a drop of 36%.

For all types of real estate sold by Realtors in all areas, 174 listings closed year to date in 2009 vs. 151 sales for the same period of 2008, an increase of 6%. 

Overall,  inventory is high with 2071 active listings and a greater number of days on the market. 

In Denver, real estate experts claim that the bottom has hit and the market is bouncing back.  This is based on increasing home sales for the past four months.

The good new is the tax credit of up to $8,000 for first time homebuyers who close on a home by Dec. 1.  Also, FHA loan limits hit $280,000 for Chaffee County.  This requires a low 3.5% down payment.

Current interest rates remain low at 5.375% for a 30-year conventional loan.

So, you can see that area sales are off 44% and prices are down an average of 20%.  Owners sold for the same sales to list price, it just took 34 days longer.  By the way, the 2009 price range was $5000-500,000 vs. the 2008 price range of $6000-650,000.

On the other hand, rates for land loans are dropping.  Within a platted recorded subdivision, they are as low as 5.75% with 15% down, 30 year amortization and a 3 year balloon.  Recently, a community bank proclaimed an “excess capital position”   Qualified borrowers are preferred!

Hosting the webinars fulfills an element of Salida’s strategic plan, known as Coming Together for Our Town, to provide expertise on common problems found in historic downtowns. 

For information on this or past webinars, contact Leslie Walker, Salida Realty, 539 1031 or leslie@buysalida.com.

Overall, the National Association of Realtors  (NAR) reports that existing home prices are declining at a rate of 12.4% a year.  In the U.S., the median sales price dropped 10% in 2008 from 2007. 

NAR reports that in Denver in 2008, the median homes sale price was $219,300, down 11% from 2007.  In Colorado Springs  in 2008, the median sales price was $205,500, down 6% from 2007.   

Salida is in line with price drops in Denver, Colorado Springs and the rest of the country.  However, the median home sales price in the area continue to rise.

In Salida from January – December 2008, 156 homes sold at an average sell price of $292,155.  Median sell price was $264,000.  The list/sell ratio was 95%.  Total sales volume was $45,576,310. 

In Salida from January – December 2007, 245 homes sold at an average sell price of $280,013.  Median sell price was $250,000.  The list/sell ratio was 96%.  Total sales volume $68,603,373.

In summary, prices are holding or increasing slightly while the number of sales and dollar volume have decreased substantially.  From December ’07 to December ’08, the number of homes sold in the Arkansas River Valley dropped 31%.  Sell price volume went from $158,729,533 to $119,889,948, a decrease of 24%.  From ’07 to ’08, the number of homes sold in Salida dropped 36% with sell price volume at $68,603,373 in ’07 and at $45,576,310 in ’08, a dip of 34%. The list/sell ratio dropped for both time periods, indicating that sellers are accepting lower offers.

* Includes: residences, homes with acreage, farms, lots and commercial properties in Chaffee, Saguache, western Fremont, Lake and Park counties.