Pagosa Springs New Years 2013 Newsletter
2012 was a good year. My first grandson was born two months ago. My second grandchild is due in a couple of weeks, and all are doing well. Laurie and I are very proud and excited to have the new generation upon us. My health has been good, my stress levels are under control, and I am a happy camper. Besides that, my business has been great. I am about to turn 65 and have no desire to retire. I expect 2013 to be even better.
So let’s talk about real estate. Overall, sales are up 7% over last year. The bulk of the increase comes from vacant land sales, which are up a surprising 46%. Condos have kicked in some as well. We have finally reached a point where land values have fallen so far into the basement that interested parties are snapping up the bargains. Owners of neighboring properties are taking particular advantage of the situation. If you can pick up the lot next to your house for a very good price, why not do it? Prices are about one-third what they were in 2006.
Median prices for homes and condos actually rose this year. It’s important to note that median prices can be misleading. The median is influenced more by the TYPE of property selling than by changes in the prices of individual properties. For example, the median sale price on condos rose 32% this year. This certainly doesn’t mean that if you own a condo in Pagosa, its value increased by 32% this year. It didn’t. But more high-end condos sold this year, and that pulls the median upward. It’s still a good sign.
We sold six ranches in the area this year, which matches the high-water mark set in 2006 and 2007. That’s up from a low of zero back in 2010.
We have now seen three straight years of overall increases in the number of sales in Pagosa. I don’t know when prices will turn around and start to climb, but you can’t have rising sales numbers and falling sales prices forever. Eventually something has to give. In my eyes, the stage is set for prices, at least for homes and condos, to begin climbing once again.
As you look at the stats over the past nine years, it will give you a good picture of the rise and fall of local real estate. Thankfully, we are back on the rise.
A few thoughts for the New Year; think positive. As some wise man once said, you become what you think about most. Stay away from negative people. Last but not least, don’t procrastinate. DO IT NOW!