It’s very green and a little soggy out there – lots of rain and not much sun over the past week or so. The monsoons have been in overdrive, and the wildflowers are having a field day. This is great news for the drought and fire danger.
Town is very busy with lots of vacationers escaping the heat back home. Texas plates are everywhere, and it’s a great time for our local merchants to cash in while the getting is good. We will then start to see a slow down in two or three weeks when the kids head back to school.
The big news of the week was the Town Council approving a sketch plan for a new development known as the Pagosa Views Subdivision. This development is planned downtown adjacent to the Elementary School, and comprised of about 80 acres. The development would include multiple housing options: apartment units, condominiums, single-family homes, cabins, and mini-cabins.
With this possible new development on the horizon, the debate continues: growth or no growth? The majority of the buyers I deal with want to be the last one in and shut the door behind them. The project is still in the early stages, and there will be a lot of hoops to jump through before it’s a done deal. To get the full story, go to mypagosa.org/600-w-us-hwy-160
Next up is the 71st Annual Archuleta County Fair, which happens August 4th through the 7th – fun for the whole family! Unfortunately, I’m going to miss it this year. My son Patrick and I are going on a 5-day float trip fishing on the Middle Fork of the Salmon River in Idaho. So, I need you to show up at the Fair in my place. I especially enjoy the chuck-wagon barbecue on Saturday night followed by the 4H animal auction. I usually buy an animal, but this year I’ll just have to be there in spirit. The 4H kids have been working for months raising their animals and building their projects, so anything you can do to support them is much appreciated.
Now for the latest real estate news. If you are a buyer who has been sitting on the sidelines for the last year, there is some good news for you. First of all, there’s a lot more inventory than there used to be. There are 183 homes available on the market today compared to just 35 last year in March, and there are 29 condos today compared to 3 last year. Vacant land inventory has not changed much – 312 now versus 292 last year.
Mortgage rates are down. Even with the Fed raising its rate by 75 basis points, today’s 30-year mortgage is 5.5% and a 15-year is at 4.75%. A few weeks ago, we were above 6%.
Building costs are coming down as well. I spoke to several builders in the area. Overall, lumber is down about 30%, but some of that savings is being eaten up by higher labor costs. New construction permits are down slightly, with 92 home permits issued so far this year compared to 99 last year at this time.
Prices are coming down across the board for homes, condos, and vacant land. I am predicting a 10% correction as supply and demand is shifting. There were 71 sales in the month of July compared to 116 last July. There are 111 pending sales at the moment compared to 204 last year at this time.
Last but not least, vacation rentals are front and center again. The County has enacted a 6-month moratorium on all new vacation rentals effective September 1st. This will theoretically give the County time to come up with a more comprehensive plan.
So long for now! I hope you have a fun-filled summer and go out to smell the wildflowers. Think positive!
GRI, CRS
2011 & 2014 Realtor of the Year
Phone (970) 731-4065
Fax (970) 731-4068
Cell (970) 946-3856
Email: [email protected]
