Hi From Pagosa Country!

          It looks like we are on the downhill-side of winter, as the snow is slowly going away after the biggest winter in 30 years.  Hopefully it will melt slowly and not all at once, which could cause flooding.  I have heard rumors that people are getting sand bags ready.  The drought seems to be past us for now.  The ski area has agreed to move its closing date back to April 13^th, and it will also be open on weekends through the end of April.  The next couple of weeks will be the peak of Spring Break skiing business, and this time of year is key for the local economy.  I’m hoping we have a few real estate buyers showing up as well.  This past week has been the busiest I have seen since Christmas Break.  I have 3 deals in the works; a home on 13 acres in Meadows, a 7-acre lot in Piedra Estates, and a 1-acre lot in Aspen Springs.

          The overall market continues to soften.  Locally, total sales are down 42% from last year.  A couple of bright spots are homes under $200,000 and the condo/townhome market, which are showing the strongest sales. 

          On the national level, the Fed has been lowering rates aggressively, which will lower costs on short-term debt like home equity loans, car loans, and credit cards.  The Fed Rate has nothing to do with long-term mortgage rates, which have gone up over a full percentage point since January 23^rd when they bottomed out at 5.25%.  Today it’s 6.375%, and I would not be surprised to see 7% if we don’t get some good news soon.  The biggest mortgage rate problem I see on the horizon is inflation caused mainly by high fuel prices and a weakening dollar. 

          Real estate prices are still in decline, which means there are some great buys to be had.  Inventory is on the rise due to sellers putting their properties back on the market after taking them off for the winter.  I expect 25% more inventory out there by July 1^st.  This heavy winter will make more people want to move to a warmer climate.  From a seller’s perspective, pricing is very competitive, so price will be the key if you want to sell.  If you bought prior to 2005, you are still in good shape.  If you bought in the last 2 years, you may be selling at a loss or with little appreciation.  The good new is if you are selling here and going to a new location, most likely you are still a winner because of great prices elsewhere.  If you are a buyer, it’s a great time to buy.

          More and more I find myself acting as a counselor rather than a salesman.  Having my customers and clients trust me is the key to a successful transaction, because I am always looking for a win-win outcome.

          Check out the latest stats below and then, if you want to see the big picture, check out the end-of-year stats by clicking here.

Lee Riley
970-946-3856 (cell)
leeriley@isellpagosa.com