The 2025 real estate market across La Plata County and the broader Southwest Colorado region reflected a year of adjustment rather than decline. Performance varied widely depending on location, price range, and property type, with some markets stabilizing while others cooled after several years of rapid growth. Shifts in affordability, buyer confidence, and time on market played a central role in shaping outcomes across the region.

Durango In-Town: Demand Holds, But With Friction

In-town Durango remained one of the region’s most resilient markets, particularly for homes below $1 million. Median selling price for homes under $1 million rose to $850,000, up 23% year-over-year, even as the number of properties sold increased modestly and days on market fell to 66 days. This signals continued demand, though affordability pressures remain a factor.

The condo and townhouse segments showed softer activity, with condo median prices below $1 million declining 6% and sales volume dropping. Meanwhile, townhome prices rose but took significantly longer to sell, reflecting a more selective buyer market. Overall, Durango continues to show underlying strength, but with more balanced conditions than the highly competitive markets of recent years.

Durango Rural: Slower Pace, More Cautious Buyers

The rural Durango market moved into softer territory in 2025. Homes below $1 million saw median prices decline 5%, while days on market rose sharply to 130 days, and sales volume fell. This combination points to a more cautious buyer pool and increased negotiation in transactions.

Condos below $1 million in the rural market experienced one of the more notable adjustments, with median prices falling 52% and marketing times increasing. Overall, rising inventory and longer absorption times suggest buyers are taking more time and weighing value carefully in rural segments.

Durango Mountain Area: Luxury Pullback

The Durango Mountain Area showed a noticeable slowdown, especially in higher price ranges. Homes above $1 million recorded a 23% decline in median price, while days on market increased. Sales volume remained flat, indicating fewer high-end buyers actively entering the market.

Below $1 million, conditions were mixed. Median prices declined slightly, but average price per square foot increased and days on market dropped significantly, suggesting selective demand still exists in more attainable segments. The broader trend points to reduced second-home and discretionary buying activity compared to previous years.

Pagosa Springs: Market Normalization

Pagosa Springs experienced a clearer correction in 2025 after strong growth in prior years. Homes below $1 million saw median prices dip slightly, while days on market increased and sales activity softened.

The condo and townhome segment showed more pronounced adjustment, with median prices declining 39% and marketing times extending. Luxury homes above $1 million also softened, with median prices down 14% and high sale prices dropping significantly. These shifts indicate a normalization phase rather than a structural downturn.

Bayfield: Stability and Affordability

Bayfield remained one of the more stable and accessible markets in the region. Homes below $1 million saw median prices rise slightly to $525,450, reinforcing steady demand. While days on market increased, price support remained intact, reflecting Bayfield’s continued appeal as a more affordable alternative to Durango.

Higher-end homes showed mixed performance, with modest price gains but significantly longer marketing times, indicating a slower pace in the luxury segment.

Mancos: Balanced but Slower

Mancos reflected a balanced yet cautious market. Median prices for homes below $1 million increased modestly, while days on market rose and the number of sales declined. These conditions suggest steady pricing, slower absorption, and more deliberate buyer behavior than in previous years.

Cortez and Dolores: Mixed Conditions

The Cortez/Dolores area delivered mixed results. Homes below $1 million saw median prices increase by 15%, but sales volume declined slightly and days on market rose, suggesting selective demand.

The condo and townhome segment softened, with declining median prices and reduced sales, reinforcing continued price sensitivity among buyers in this part of the region.

Residential Land Market: Cooling Across the Region

The residential land market softened across much of Southwest Colorado in 2025. Sales activity declined in several areas, including Durango and Pagosa Springs, while median prices remained flat or fell in many locations. Higher construction costs and financing considerations continue to influence land demand and development activity.

Looking Ahead

As the market moves forward, inventory levels, interest rates, and buyer confidence will continue to shape conditions across Southwest Colorado. While some markets are stabilizing and others are adjusting, opportunities remain across price points and locations for both buyers and sellers.

For insight into specific neighborhoods, pricing strategy, or emerging opportunities, connect with your broker at Legacy Properties West Sotheby’s International Realty.