Nestled on Pinon Lake with an extraordinary view of the San Juan mountain range; Mountain Lake Villas subdivision offers the perfect combination of luxury and convenience. We have a variety of floor plans to choose from, some single level and some multi story…
I listened quietly — from my corner of the South Conference Room in the Ross Aragon Community Center — to seven hours of conversation among Town Council and staff. Listened to nine intelligent people, discussing the ways they might try and make life better for the citizens and taxpayers of a small, rural town, as they plan to spend perhaps $12 million over the next year.
Where to focus their efforts?
Council member Nicole DeMarco, who works in the real estate industry, told the retreat participants that the Pagosa Springs real estate market has, over the past month, seen its highest level of property sales — possibly ever? This comment aligns with the report shared by realtor Lee Riley in his recent Daily Post article, when he wrote:
This is the busiest I have seen the market since 2005. Pending sales are through the roof. There are currently 219 properties under contract, compared to 128 last year at this time. Multiple offers are much more common than I’ve seen in the past. Inventory is way down, which keeps prices very strong due to supply and demand. This is great for sellers, but not so good for buyers.
The big jump in activity is due to a combination of several factors. Interest rates remain at unheard of lows. A 30-year fixed-rate mortgage is currently 3.0% and a 15-year is at 2.5%. We’re seeing an exodus of people from the big city headed for small town charm, a safer place to live, less crime, and less stress. This is creating a perfect storm for a real estate boom.
A perfect storm? Well, not exactly “perfect” if you are a working family with hopes of owning a home in Archuleta County. But certainly a “storm” in the sense of “an unwanted disturbance.”
So… looking at the list of ‘priorities’ that the Town government might choose to address over the next year or two… do we have other community issues that might be defined as “a perfect storm”? Other than our housing crisis?
Is ‘broadband’ unfolding as a ‘perfect storm’? Would we define the desire to update the Town Land Use and Development Code — to better align it with the 2018 Comprehensive Plan — as a ‘perfect storm’?
What other Council projects might rise to the level of a ‘perfect storm’? Completion of the controversial and long-delayed ‘Town to Lakes Trail’? More river access for recreational rafters and kayakers? The development of additional Town parks? Remodeling of Town Hall? All of these things were mentioned as possibly more important than addressing the community’s housing crisis.
The Council discussed the idea of purchasing additional vacant property for municipal uses. The Town has made a couple of land purchases recently — one, several miles down Trujillo Road to meet the “take out” needs of recreational boaters, and another $400,000 expenditure to preserve a traditional swimming hole called Cotton’s Hole at the east end of downtown. If you are a taxpayer who puts recreation at the top of your list of priorities, you have reason to applaud. The Town is also considering a massive investment in building the multi-million-dollar Town to Lakes Trail, and the expansion of Yamaguchi Park onto the former sewer lagoons property. Other big municipal investments, currently underway, include a multi-million-dollar shop facility and a planned trail from Town Park to Cotton’s Hole.
When the agenda came around to the subject of affordable housing, about five hours into the seven-hour retreat, almost the entire discussion was focused on the ongoing conversion of single family homes into ‘vacation rentals’, and whether the Council really ought to do something about the (massive?) loss of residential options for local families. The general consensus seemed to be, “Well, let’s wait and see how that goes.”
As far as I can tell, that’s going rather badly — for local residents — and just fine for the tourism industry.
The Council did, however, generally agree that the Town ought to contract with a local realtor, who might be able to provide information about vacant properties coming onto the market. In fact, just such a request was announced by the Town staff yesterday. (You can learn more about that request here.)
Not many builders or developers in Archuleta County are focused on work force housing these days. One developer making an effort at addressing our lack of affordable homes is BWD Construction, owned by Jack Searle. According to real estate website Zillow, BWD is in the process of building a handful of 800 square foot, one-bedroom one-bath homes in a small subdivision tucked behind the Best Western Pagosa Lodge, near Pinon Lake.
Nestled on Pinon Lake with an extraordinary view of the San Juan mountain range; Mountain Lake Villas subdivision offers the perfect combination of luxury and convenience. We have a variety of floor plans to choose from, some single level and some multi story. Floor plans range from 800 Sq Ft 1 bed 1 bath to 2500 4 bed 3.5 bath. HOA takes care of snow removal, landscaping, studs out insurance, maintenance and repair. Location is perfect for the healthy lifestyle of Pagosa Springs as it is walking distance to grocery store, restaurants, amenities, hospital, etc. Reserve yours today!
The design of these relatively small homes could be categorized as “21st Century No-Frills Affordable.” Except that few working class jobs in Pagosa Springs — especially, jobs in the tourism industry — would qualify an individual for a $232,000 mortgage. Such a purchase would put considerable stress on the family budget, particularly during a global pandemic. Particularly if your employment insurance has run out. I suspect a cute little $232,000 home like the one illustrated above will likely be snapped up by a middle-class retired couple from Phoenix or Dallas.
Can a municipal government do anything to help out, in such a situation?