Pagosa Springs Real Estate Newsletter, June 2011
After some brief signs of a dry year, Mother Nature brought us one of the coolest, wettest Springs of the last couple years. The snowpack currently stands at 149% of average, and one of my fellow Realtors, Kalei Pitcher, spent an afternoon in late May snowboarding on fresh powder! The skies have been alternately sunny, cloudy, rainy, snowy, and windy – sometimes all in the same day. As they say, if you don’t like the weather in Colorado, just wait 10 minutes.
In contrast to the weather, our real estate stats have been holding pretty steady over the last couple of months. The residential market continues to improve over last year while the vacant land market stays flat. If current trends continue, this will be our best year since 2007 if you measure number of transactions closed.
In terms of pure number of transactions, we seem to have hit a bottom in 2009. Two years ago on this date, we had closed just 80 transactions in the entire county. This year we’ve done more than twice that many. The question on everyone’s minds, however, is when will prices hit a bottom? Unfortunately, I can’t answer that question, and to be honest, I don’t think anyone else can either.
I can tell you that prices are still being driven by bank repos, and until they start to dry up, it will be very difficult for prices to make a rebound. So far this year, bank repos have accounted for 45% of the residential sales and 38% of the sales overall. Many banks will reduce their list price every 30 to 90 days, so it’s simply a race to the bottom out there for as long as the repos hold out. How long will that be? The only thing I know for sure is that it can’t last forever.
The absolute bottom on prices may have already past, or it may be yet to come. Regardless of the exact timing, the fact remains that Pagosa Springs is “on sale” right now in a way unmatched in recent memory. Given all the beauty and amenities in our little town, and considering these unprecedented low prices, Pagosa Springs is the best deal in Colorado. With interest rates once again at historical lows, this is a tremendous opportunity for buyers to own a piece of the Colorado Dream.
Finally, I’d like to remind everyone that I have a moving truck available for my clients’ use. If you buy or sell with me, you move for free, as long as the truck stays within a 100-mile radius. The truck is also available for free to local non-profits, churches, and charitable organizations. If your group would like to reserve the truck, just give my office a call to set up a reservation.