Yes there is more demand for traditional, hence there are more being built than contemporary.
No the average buyer does not shy away from these homes if they are looking in these specific areas and at older homes.
Buyers are LOCALE driven (actually the number one answer is SHOPPING, believe it or not), then price. The architectural style is much lower on the list.
Yes, there is more demand for traditional homes, as I mentioned before the price that you will buy or sell that contemporary home should reflect the lack of demand. However, that does not mean that this style home is not appreciated or enjoyed. People will buy based what the neighborhood offers and if it is the best value and not just on price.
What you should do is take a look not just at the specific community, but the area within, say, a 2 mile radius of a property. Get a sense of the architecture in that area. Now, there may be pockets of contemporaries within larger areas of traditional homes. And that's fine. But they may be a bit more difficult to sell.
And whether it's contemporary or traditional styling, make sure there's nothing really odd or weird about the house. A contemporary with 4 decent sized bedrooms, 2.5 baths, a living room, kitchen, and dining room, all in good shape, will be preferred over, say, a colonial with no dining room and a couple of 8'x8' bedrooms.
Yes, price does matter a lot. But so do things like curb appeal, and some contemporaries are great on the inside but really are unattractive from the outside. (Just my opinion; my sister bought a contemporary that fits that description.)
So, there's no absolute answer to your question. Get to know the community and what people in the area like to buy. Then look for value, and avoid properties with elements that would turn buyers off.
Hope that helps.