Pagosa Springs Real Estate Newsletter – July 2011
Happy 235th Birthday, USA!
Pagosa celebrates Independence Day right with a parade, a carnival, an arts & crafts fair, and the Red Ryder Rodeo. Of course, we always have music and fireworks to finish off the day. I watched the parade from the sidelines for a change; quite often I’m in the parade on a float or in my moving truck for marketing purposes. But this year, both of my kids, Patrick and Heather, and their spouses were here to share in the festivities. Of course, we had two Labs along for the ride, who had a great time in the river. Fun was had by all. The town seemed very busy, but we have to wait to see tax revenues before we keep score.
What about the real estate market? It’s good but not great. Home sales are up 32% and total sales are up 27% from last year at this time. Repos are still the buzzword affecting the sales. 47% of all home sales were bank owned. Some good news is that the number of new residential repos on the market is on the decline, at least for now. I listed a Bank of America-owned property a week ago and it had five offers almost immediately – a sign of the times.
Over the first half of the year, I’ve noticed a couple of interesting trends in the stats. Of all the sales this year, just 9% sold at or above their original listing price. 60% of properties required a reduction in asking price before they sold. 80% of all properties sold below their latest asking price, so very few sellers are seeing full-price offers. On average, a home sells for 93% of its listing price.
In general, we are seeing a shift in demand toward lower-priced properties. As I write this, there are 47 properties under contract to be sold. Of those, 66% are listed under $200,000. Among the current pending sales, only 5 are vacant land. There are one each of commercial and multifamily properties, and the vast remainder are homes or condos. Conversely, we have had three million-dollar sales this year, with one of them selling for over $2 Million. Buyers with some money are realizing that there are great deals to be had in the high-end market as well.
Interest rates today are 4.75% for a 30-year and 3.875% for a 15-year loan. The Jumbo rate which covers sales above $417,000 is 5.25% for a 30-year note.
What will affect the market for the rest of the year? My best guess is there will be several factors. The main issue is consumer confidence which is reflected in jobs, the stock market, and gas prices, to mention the main ones. Another factor will be if we see the interest rates start to rise. If repos start to dry up, this may make buyers who have been waiting on the sidelines for the bottom jump on board so as not to be left behind. As I look at the numbers, it looks to me like you can buy a home at the same price as you could eight years or so ago.
If you are a buyer, the world is good; it’s time to pull the trigger. If you are a seller, get involved in helping your Agent! Do some of your own advertising. Hold an open house. Stage your home. If you’re not getting any showings or lots of showings but no offers, adjust your price. Selling is a team effort.
I’d like to note one Coming Attraction on my website, ISellPagosa.com. We are currently working on a new online feature which will allow you to see all the newest listings and the latest price changes for all of the Pagosa Springs market. This new feature is still in the works, but it should be available in the near future. I’ll let you know when it goes live.
Well, so much for the first half of 2011. So far the numbers show we are moving in the right direction. I try to think positive; it makes me feel better!
So long for now, I hope you and your family have a great summer.