Pagosa Springs Real Estate Newsletter, September 2013
Summer is coming to a close, but around here it looks like spring. The grass is very green, and we still have lots of wild flowers blooming. August was just as wet as June was dry. The good news is the Four Corners Folk Festival enjoyed great weather this year.
Now everybody’s thoughts are turning toward fall. The local kids went back to school on Tuesday. Hunting season has just started for the bow hunters and the blue grouse hunters. A few Aspens have started to turn way up in the high country. Temperatures are coming down, and the mornings are cool and calm.
Here in town, we’ve got some exciting news! The old, downtown City Market complex has been sold. The property includes the old grocery store and several of the adjacent commercial spaces. Many of the buildings have been sitting vacant for the past several years, and it was a blight on the downtown area. I don’t know what the new owner has in mind yet, but I look forward to some vibrant retail operation.
In other news, Walmart is supposed to break ground on their store this month. Hopefully they will get some of the local contractors involved in the work. The Piedra Road paving project is starting this week. It’s supposed to be done by the end of October, which will be great news for people traveling to the Lake Hatcher area.
Turning to the real estate market, sales were up in August, contrary to my prediction. I found out that I was looking at some incorrect data on pending sales due to a change in the way our computer system handles properties under contract. These numbers tainted my projection, and it turned out that August was a pretty good month after all. Three price categories in particular are showing the best improvement over last year. The first category is $150,000 to $200,000, the second is $300,000 to $400,000, and the third is $500,000 to $750,000. Even with the increased sales, overall inventory is not going down. Evidently, some sellers have been waiting for prices to rebound before listing their homes. Now that the market is on the mend, they are putting their homes on the market with higher prices. Even though most of the inventory is going up, one exception is the low end – especially under $200,000. These properties seem to be drying up.
There are a couple of big picture issues putting a drag on the market. Interest rates are now above their historical lows and are rising steadily. The geopolitical issues in the Middle East are creating some uncertainty. And, the stock market fell 4% in August. Hopefully, September and October will buck these trends and will be our busiest time of year, like they have been in the past.