This past weekend had big doings going on. It was the 23rd Annual Four Corners Folk Festival. This is our version of Woodstock, and it’s my favorite party of the year. The next festival coming up is Colorfest, which begins on September 14th. We’re expecting over 40 hot air balloons in town, along with a Wine & Food Festival and a Bands & Brews Festival. For more information, visit the Pagosa Springs Chamber of Commerce.
Speaking of Colorfest, the weathermen up in Denver are saying that the colors will peak earlier this year due to the severe drought. Rumor has it that the El Nino weather pattern will return this winter, which would mean a lot of snow for us. Personally, I don’t like snow except on Christmas Day, but I am currently having a paradigm shift since I ran out of water last week at my house. This year, I’ll take all the snow we can get!
I just drove over Red Mountain Pass on the way to a real estate function, and I saw a little snow up on the peaks. Temperatures over the past few days have been much lower than normal, barely reaching 70 degrees, but I know we still have Indian Summer to look forward to before winter hits. Fall is a beautiful time in Pagosa Country!
So much for the weather. Another storm that has been brewing over the past several months is what to do about short-term vacation rentals in Archuleta County. Most buyers and owners who don’t live in Pagosa full-time view short-term rentals favorably. Renting out a home or condo part-time is a way to help cover the cost of owning the property, and can sometimes be a fruitful investment. These folks generally do not favor any new or strict regulations on short-term renting. If a property has restrictions against short-term renting, it may reduce its market value.
Some full-time local residents don’t like living next to a revolving door of short-term renters who may not respect the neighborhood. Most of our short-term renters do not cause any problems, but there are always a few bad apples. There have also been some reported problems where short-term rental properties are rented to groups which are far too big for the home to physically support.
This conflict has culminated in a set of new regulations enacted by the County governing short-term rentals effective October 1. The rules indicate that short-term rentals must be permitted through the County and must meet a number of requirements like adequate wastewater and garbage disposal. They also must have a local representative available to respond to problems at the rental. You can view the full set of new rules by reading the County Planning Department Fact Sheet.
Now for the latest real estate news. We’ve seen a slight improvement over the past month. Pending sales are up from 122 last year at this time to 138 today. Overall annual sales were down 11% last month, and now we’re only down 9%. This last quarter of the year is usually strong, so I’m optimistic that we’ll continue to catch up to last year over the next few months.
We still have a problem with limited inventory, which could stunt our sales growth. With a lack of supply, especially on the lower end of the market, prices will continue to appreciate. Interest rates are still low and are expected to go up. Currently, the 15-year fixed is at 4.25% and the 30-year is at 4.5%.
So long for now. Enjoy the fall colors!
GRI, CRS
2011 & 2014 Realtor of the Year
Phone (970) 731-4065
Fax (970) 731-4068
Cell (970) 946-3856
Email: [email protected]
