REAL ESTATE: The Riley Report

Hello From Beautiful Pagosa Country!

I’m looking at a winter wonderland out my window this morning… it’s snowing hard! We’re expecting 5 inches of snow from this storm, and Wolf Creek should get a foot of fresh powder. Currently, the ski area has 27” of snow at the top of the mountain, and 90% of the terrain is open for skiing.

Driving around town at night is gorgeous with all the beautiful lights and Christmas décor. Town is pretty mellow for the moment, but things will pick up quickly in a couple of weeks as the holiday skiers arrive, along with all the families coming into town to celebrate the holidays. This is a very important time of year for our local merchants, hotels, and restaurants. All our local businesses are hoping to find some tourist dollars under their Christmas trees this year.

The Riley clan will all be at my house this year. It’s our turn to have all four grandkids around the tree. Santa is working furiously to prepare for the occasion.

Now for the latest real estate news. Little has changed over the last couple months. Compared with this time last year, total sales are down 21%. Home sales are down 11%, condo sales are down 35%, and vacant land sales are down 27%.

Inventory is up across the board. Home sales are down across nearly all price ranges, with one notable exception being the $500,000 to $600,000 range, where sales are up 66%. (To see all the details, make sure you check out the charts and stats, here.)

The good news today is mortgage rates are down from where they were a month ago. A 30-year fixed-rate mortgage now goes for about 7% compared to 8.25% last month, but this is still far above the 3% rates we were seeing at the beginning of the year.

With a typical purchase price of $600,000 and 20% down, here are the monthly payments on a $480,000 mortgage with a 30-year fixed rate, with estimated taxes and insurance included:

Even though rates have fallen, they are still too high for most buyers to jump into the market. Cash is king! Hopefully next spring or summer we’ll see rates in the 6% range or below. I think this would spur buyers and sellers in our market to become more active.

If you are a potential buyer, this is typically the time of year when prices are at their lowest. Sellers who listed their property in the spring or summer are getting tired of waiting, and they don’t want to hold and maintain their property through the winter months. Prices are typically at their peak in the spring, when the grass is growing, the flowers are blooming, and seller optimism is high. Most years, if you’re looking for a deal, this is the best time to buy.

So long for now! I wish you and your family a wonderful holiday season! A special thanks goes out to our military and first responders.