PHOTO: 2554 County Road 400, offered at $974,900.
Hello From Pagosa Country!
It’s very green and a little soggy out there – lots of rain and not much sun over the past week or so. The monsoons have been in overdrive, and the wildflowers are having a field day. This is great news for the drought and fire danger.
Town is very busy with lots of vacationers escaping the heat back home. Texas plates are everywhere, and it’s a great time for our local merchants to cash in while the getting is good. We will then start to see a slow down in two or three weeks when the kids head back to school.
The big news of the week was the Town Council approving a sketch plan for a new development known as the Pagosa Views subdivision. This development is planned downtown adjacent to the Elementary School, and comprised of about 80 acres. The development would include multiple housing options: apartment units, condominiums, single-family homes, cabins, and mini-cabins.
The project is still in the early stages, and there will be a lot of hoops to jump through before it’s a done deal.
With this possible new development on the horizon, the debate continues: growth or no growth? The majority of the buyers I deal with want to be the last one in and shut the door behind them.
Unfortunately, I missed the 71st Annual Archuleta County Fair this year, which took place August 4 – 7… one of my favorite Pagosa Springs events. My son Patrick and I were on a 5-day float trip fishing on the Middle Fork of the Salmon River in Idaho.
Now for the latest real estate news. If you are a buyer who has been sitting on the sidelines for the last year, there is some good news for you.
First of all, there’s a lot more inventory than there used to be. There are 183 homes available on the market today compared to just 35 last year in March, and there are 29 condos today compared to 3 last year. Vacant land inventory has not changed much – 312 now versus 292 last year.
Mortgage rates are down. Even with the Fed raising its rate by 75 basis points, today’s 30-year mortgage is 5.5% and a 15-year is at 4.75%. A few weeks ago, we were above 6%.
Building costs are coming down as well. I spoke to several builders in the area. Overall, lumber prices are down about 30%, but some of that savings is being eaten up by higher labor costs. New construction permits are down slightly, with 92 home permits issued so far this year compared to 99 last year at this time.
Prices are coming down across the board for homes, condos, and vacant land. I am predicting a 10% correction as supply and demand is shifting. There were 71 sales in the month of July compared to 116 last July. There are 111 pending sales at the moment compared to 204 last year at this time.
Last but not least, vacation rentals are front and center again. The County has enacted a 6-month moratorium on all new vacation rentals effective September 1. This will theoretically give the County time to come up with a more comprehensive plan.
So long for now! I hope you have a fun-filled summer and go out to smell the wildflowers. Think positive!
Pagosa Springs real estate agent Lee Riley has regularly been one of the area’s top selling Realtors® in recent years and offers a wide selection of real estate facts and information on his web site at ISellPagosa.com