Pagosa Springs Real Estate Newsletter, September 2012
Summer is winding down, though it’s still sunny and hot outside. The local kids return to school on Tuesday, and the archery hunters are streaming into town. We’ll have Broncos football on the television soon, and everybody is excited about seeing Peyton Manning in orange and blue! It won’t be long before the Aspens are changing and we have snow on the peaks, but for now, we are all enjoying the last couple weeks of summer weather.
In local news, the Town of Pagosa Springs is moving forward with a plan to add an alpine coaster, a zip line, and some other amenities to the downtown park known as Reservoir Hill. The town has developed a list of attractions to be added to the hill if sufficient funding can be found. On August 23rd, the Town Council approved the proposed list of amenities and asked the town staff to pursue funding options.
As is frequently the case, this development plan has its fair share of detractors. Opponents of the plan would like to retain the wild nature of the park in its current state. Some question the economic feasibility of the plan, while others would like to see a smaller, more downscale version of the proposed plan. Proponents of the development plan say it will bring more revenue to the area and make Pagosa Springs a more attractive destination for tourists.
Despite the Council’s vote, this is not yet a “done deal.” The town staff will have to come up with a way to fund the development, and many of the operational details will have to be hammered out. Another Council vote will likely be required at some point in the unknown future. We’ll see how things turn out.
Let’s turn to the real estate stats. The numbers for this August lagged the numbers for last August. So far this year, we have had two very positive months (January & May) and two somewhat negative months (July & August) with everything else staying pretty much right on par. Thanks to the strong sales during the positive months, we are holding steady at a 5% overall gain compared to last year. Condo sales continue to lead the way as the number of sales has increased by more than half and the median sale price has risen more than $50,000. Land sales are surprisingly strong with nearly 100 closed deals so far this year, and the rest of the categories are a mixed bag.
Repo inventory is holding steady in a range of 70 to 90 units. The inventory has been fluctuating between these two numbers for about a year. It is interesting to note that the inventory has been shifting away from residential properties and more toward the other categories during this time. As of this writing, there are 88 repos listed in town. Only 30 of these are stick built residential homes, while nearly 50 are vacant land. The rest are a mix of commercial, mobile homes, and condos. I did a little additional research and found that bank repos currently account for about one-fourth of the residential sales this year. Last year it was one-third. I expect this ratio to continue to decline as the inventory dries up and the market continues to improve.
Autumn is usually a very productive time for Pagosa real estate agents. A lot of people are coming into town, and it has been my experience that the quality of buyers tends to increase – fewer looky-loos and more folks ready to make an offer. I’m looking forward to the business and the spectacular fall colors.