Hello From Beautiful Pagosa Country!
Lately, the weather has been gorgeous if you like warm temperatures and sunny skies. Yesterday my wife, Laurie, and our golden retriever, Archie, and I all headed for Navajo Lake loaded up with lawn chairs, fishing poles, and Subway sandwiches. We were not disappointed with 70-degree temperatures. I didn’t catch any fish, but Archie had a ball fetching sticks from the lake. As I’m enjoying this springtime weather, I know we desperately need moisture. Fortunately, 10 days ago we received a big dump of snow. Wolf Creek Ski Area received 5 feet of snow, and Pagosa got 16” to 24” depending on where you live. Our moisture content jumped from 43% to 60% of normal. I’ve been told that we would need two more storms like this to catch up to where we should be. Unfortunately, we do not expect much moisture in the next 10-day forecast. With conditions this way, we worry about water rationing, a poor rafting season, and fires this summer.
I recently spoke with James Dikhoff, who is the Development Director for the Town of Pagosa Springs. I asked him what was happening with the reconstruction of the San Juan River after the major flood we experienced last fall. The Town has been working on the section of the river near the Malt Shoppe and will be fixing several other sections that were negatively impacted by the flood. The Town has already received $3 million in grant money for this project, and they expect this will give them enough funds to complete the work scheduled for this year. However, they expect they will need an additional $3 million to finish the entire project. Unfortunately, our request to get those funds from FEMA was denied. In order to cover the shortfall, the Town will have a special election on April 7 to ask the voters to approve a loan instead. I’m told this will not impact anybody’s taxes. I’m concerned that the current state of the river may compromise our summer rafting season. Several sections of the river channel were rearranged by the flood, and they may not be passable in their current state. We’ll just have to wait and see.
Another top-of-mind issue in Pagosa is the construction zone downtown. I just spoke with someone at the Colorado Department of Transportation (CDOT), and she informed me that they are about to ramp up their construction crew starting March 16. I hope they will prioritize the section of highway downtown in front of the movie theater and the old county courthouse. That would sure help the downtown merchants this summer.
Now for the latest real estate news. The total number of real estate sales year-to-date is down 26% with 61 sales this year compared to 82 last year at this time. Home sales are up slightly with 30 this year versus 28 last year. Condo & townhome sales are down slightly with 5 this year versus 8 last year. If you look at all the home, condo, and townhome sales taken together, the market is flat.
The reason the overall sales numbers are down so dramatically is due to vacant land sales, which have plummeted 50% from last year. We’ve sold just 22 vacant lots this year compared to 44 last year at this time.
Sales in the month of February were way down, with 28 completed sales in February 2026 compared to 52 sales in 2025. Pending sales are also soft, with 43 this year versus 70 last year.
On the other side of the coin, inventory is up. Home inventory is up 16% and land inventory is up 7%, while condo inventory is flat.
So far this year, the numbers compared to last year are dreary. The first quarter of 2025 was the strongest part of the year last year. Sales went down during the following 9 months.
Now for some good news! Interest rates are down. The 30-year fixed rate is 6.13% and the 15-year is 5.75%. The 30-year fixed rate was at 5.99% a week ago. This reflects what has happened since the war started.
As I look into my crystal ball, as long as the war doesn’t get out of control, I expect the market to improve as we get further into the year. The number of sales will increase, but prices will stay flat. It is still a buyer’s market. Sellers will need to price competitively, or their real estate will sit on the shelf and will depreciate with time. If you are a buyer, you will see more inventory to choose from, and you will be more able to negotiate, especially at the higher end of the market. Make sure you check out all the graphs and stats for the full story.
So long for now! Be watching for spring flowers to start popping up. Think positive and smile a lot. Thanks again to all our troops overseas and their families at home. We appreciate all they do for us.
Lee Riley
970-946-3856 (cell)
[email protected]
P.S. Remember, with my CRS referral network, I can provide you with a top notch Realtor anywhere in the country. CRS stands for Certified Residential Specialist, a professional designation that only 4% of the Realtors in the country have earned. If you or someone you know is relocating, I can refer you to a certified CRS agent.
GRI, CRS
2001 & 2014 Realtor of the Year
Phone (970) 731-4065
Fax (970) 731-4068
Cell (970) 946-3856
Email: [email protected]
