Hello From Beautiful Pagosa Country!
Finally, the trees have all their leaves, and wildflowers are popping up everywhere. We received good rains this month along with heavy snow all winter, making emerald green the color of the day. The rivers are running at peak levels, and rafting season is upon us.
This past Memorial Day Weekend kicked off the summer season with a bang. The town was full of tourists enjoying perfect weather in the 70s with no rain. Another bright spot is that the McCabe Creek construction project downtown near 6th Street will soon be completed, after three years of work. Hooray!
I’d like to follow up on a story I reported in last month’s newsletter regarding the Casa at Two Doves development downtown. I may have inadvertently suggested the Town was being heavy-handed with the developer, and this was not my intent. In hindsight, I should have done more due diligence. After meeting with Town officials, they informed me that they treat all developments in the same manner. Their job is to make sure that every project gets done right.
Now for the latest real estate news. Total sales year-to-date are down 45% from a year ago. Home sales are down 37%, condo sales are down 61%, and vacant land sales are down 51%. Home inventory is down slightly from last year, but condo and vacant land inventory is way up. There were 56 total sales in the month of May compared to 80 last year. Pending sales today are at 82 compared to 130 a year ago.
New listings are coming on the market daily, and inventory will probably peak by July 1. We have a glut of homes priced over $1,000,000, with 48 options available if you’re looking to buy in that price range. Meanwhile, we have only 26 homes priced under $500,000.
Interest rates are back on the rise. A 30-year fixed-rate mortgage is currently at 6.51% and a 15-year is at 5.74%. We still have a lot less home inventory on the market than normal. There are 131 homes available today, compared to 262 back on June 1, 2019. Many sellers are reluctant to trade in their current 3% mortgage for a new one that might be pushing 7%. As a result, they’re not putting as many homes on the market. If and when we see 5% rates again, that will probably spur more normal home inventory.
There is a new elephant in the room in Archuleta County. Our new county property tax valuations just came in, and in many cases, they went through the roof. Property values exploded during the pandemic, and those values are reflected in the new tax valuations from the county. In some cases, valuations have doubled from last year. Property values are the basis for property taxes, so as you would expect, this has created a major uproar. My phone has been ringing off the hook. Everybody has been wanting to know how to protest their tax valuation.
The deadline for protest is June 8. I’ve spoken to the Assessor’s Office five times in the last couple of weeks, and I’m still confused…
Fortunately, Bill Hudson has been following this issue closely in the Pagosa Daily Post. In his series of articles titled, ‘How to Protest Your Property Valuation,’ he outlines the process and gives some helpful tips for navigating the County Assessor’s website. Hopefully this will be helpful if you’re considering protesting your valuation.
You can begin reading the article series here: Pagosa Daily Post: How to Protest Your Property Valuation
So long for now… I hope you have a great summer. Remember to think positive, smell the roses, and smile more. It’s contagious…
Pagosa Springs real estate agent Lee Riley has regularly been one of the area’s top selling Realtors® in recent years and offers a wide selection of real estate facts and information on his web site at ISellPagosa.com