June 2009 Newsletter

It’s been a busy past week. Last weekend, I had four buyers come to work with me.  On Saturday, I had appointments at 10:00 a.m., noon, and 3:00 p.m..  Sunday at 9:00 a.m. was the icing on the cake! So far, two have written contracts to buy homes. The third is close to buying, and the fourth has been a marathon run. I have been working with these clients for three years, and they will buy when the “time is right and the right home comes along”.  In today’s market, this amount of activity is truly special.  To go along with this good fortune, I have recently listed several good properties.

One of our best values out there is The Enclave.  Last summer, these units were listed at roughly $215,000.  Because of a large inventory reduction sale about to come online, you can pick up a brand new, 3 bedroom, 2 ½ bath unit with a double garage for $159,200.

Yesterday, I went out with a first-time buyer – a young man and newlywed of a year and a half. First time buyers are especially enjoyable and rewarding to work with. They need extra help understanding the process.  My son is going through the process right now as well. The good news for both of these new families is the $8,000 tax credit the government is offering as part of the stimulus package.  This is a refundable tax credit for first-time home buyers.  It is a credit and not a deduction, which means that if someone owes $2000 in income taxes in 2009, and they buy their first home before December of this year, the home buyer will receive a tax refund for the difference – in this example, $6000.  What a great incentive for young people to own, not rent!

Not only is my business good, but we are getting ready for two weddings. My daughter, Heather, is getting married on Father’s Day at our home, so we are working on our punch-list. We are painting parts of the house, rocking two fireplaces, planting lots of flowers, and working through all the catering preparations.

Laurie and I took a little side trip to Steamboat Springs where Heather was born almost 30 years ago. We were multi-tasking this trip. One task was to find a restaurant to have Patrick’s Rehearsal Dinner on September 11th, and the second was to celebrate our 33rd Wedding Anniversary.

Hopefully, all of these good omens are green shoots to start off a great summer. We sure have had enough rain this spring to start them off. The wildflowers are beautiful and the grass is very, very lush.

As you look at the stats for the last couple of months, there has not been much change. Still, sales are very sluggish. Hopefully, this summer season will be the corner we’ve been waiting to turn. I think buyers are ready. Interest rates are still low, but starting to rise. Inventory is almost at its peak for good selection. Prices are down and very attractive. There are still quite a few bank repos available, but they are disappearing. Repos are still the product affecting the market the most. Inventory of REO’s or repos is about 3% of inventory and 30% of sales. Hopefully, we will clear out this low-end product soon to allow the rest of the market a better chance to rebound. I am optimistic we are close to a bottom.

I hope you and your family have a fun summer. Please let me know if I can be of any help with your Real Estate needs or questions.


Lee Riley
GRI, CRS
2011 & 2014 Realtor of the Year
Phone (970) 731-4065
Fax (970) 731-4068
Cell (970) 946-3856
Email: LeeRiley@ISellPagosa.com