REAL ESTATE: The Riley Report

Photo credit Kevin Bruce, Wolf Creek Ski Area.

Happy Holidays From Pagosa Country!

It’s snowing as I write today. We received two inches of snow overnight and Wolf Creek Ski Area got four. November was pretty mild with not much moisture. On the bright side, it’s supposed to snow over the next several days. Wolf Creek is open for skiing, but could use a good dump. Currently, the Ski Area has 29 inches midway and 59 inches so far this season.

Around town, some really good news is the construction zone downtown dealing with the McCabe Creek culvert has re-opened for four-lane traffic. The highway department has been working on it for about a year. They’ve still got a little work to do before completion next spring, but that shouldn’t affect our traffic in the future.

Another sign of progress is the opening of the new Department of Human Services building across the street from Town Hall. I went to their open house yesterday. The new building houses staff members who deal with medical and food assistance, low-income energy assistance, adult and child protective services, foster care, and child support.

Not wanting to change the tone, but a negative issue has come up which prompted me to write a letter to the editor in last week’s Pagosa Springs SUN. My concern was the high gas prices we are unfairly paying here in town. I recently returned from Denver and filled up in Del Norte, paying $3.25 per gallon, which is 65 cents cheaper than Pagosa. We are paying the highest prices in the region. Bayfield and Durango prices are much lower as well. If you would like to help with this grassroots campaign, email me — leeriley@isellpagosa.com — and I will provide you with some information on who to contact so we can fix this injustice.

Now for the latest real estate news. Not much has changed over the last few months. The market has softened from the peak last March. Overall sales are down 34%, with 811 total sales so far this year, compared to 1,236 last year. Home sales are down 25% and condo sales are down 11%. Vacant land sales are down a whopping 45%.

Inventory is up across the board. Home inventory is up 83%; condo inventory is up 400%; and vacant land inventory is up 34%. For November, we had 55 total sales versus 98 in November last year. Pending sales are way down. We’ve got 56 in the hopper today versus 142 a year ago.

The culprits for this decline are many. Interest rates have more than doubled from the first of the year. A 30-year fixed-rate mortgage is currently going for 6.14%, and a 15-year mortgage is 5.46%. Inflation and recession fears have also taken their toll.

Hopefully, with the Fed’s help, we’ll have a soft landing in the spring. In the meantime, if you are a buyer, prices are in decline. If you are a seller, values are higher than they were a year ago. Your property is probably worth double what it was in 2019. To get the complete story, make sure you check out the stats and graphs below.

So long for now. Think positive! The glass if half full! Today is the most important day of your life.

I want to wish you and your family a joyful holiday season, and I want to give a special salute to our military and first responders here and overseas.