REAL ESTATE: The Riley Report

Hello From Pagosa Country!

The skies are bright blue today – not a cloud in sight. It was chilly last week, but we are about to rebound. It should be a balmy 52 degrees today. There is still plenty of snow on the ground. Wolf Creek Ski Area has 93” midway and 100” at the summit. The snowpack in the mountains is at 78% of median for this time of year. The Spring Breakers will be headed to town next weekend, and the town should be very busy for the next couple of weeks.

Pagosa continues to re-open. Restaurants are able to seat 50% capacity if they have enough space to do so.

Now for the latest real estate news. Four words sum it up: It’s Nuts Out There! I can’t keep up with the changing times. The market has changed a bunch in the past 60 days. Lack of inventory is what it’s all about. Currently, we have 69 homes on the market compared to 161 this time last year. There are only 6 homes under $400,000 versus 53 in 2020. There are only 3 condos or townhomes on the market versus 30 in 2020. Land inventory is down 35% with 334 parcels on the market versus 513 last year.

Sales are way up by 69% – 144 versus 85. Pending sales are double from last year at 207 compared to 102 in 2020. Prices are skyrocketing. Buyers are sitting on the sidelines waiting for new inventory to arrive on the market and pouncing on it from afar with bidding wars being the norm. Interest rates are still at historic lows, but are starting to rise. A 30-year fixed-rate mortgage is currently at 3.0% and a 15-year is 2.25%.

After 30 years of doing business a certain way, I’m having a hard time adjusting. I have people asking me if we’re in a bubble and whether they should wait to see if things settle down. I don’t think so. In order for the market to change, it may take a major stock market crash or some geopolitical event to take place to have such a correction. I would love to see a bunch of new homes being built at a reasonable price, but I don’t see this happening. Lumber prices are still sky high. Land prices are going up.

There is a lack of manpower to keep up with demand.

Now for some good news. I’ve had both my COVID shots. My wife, Laurie, gets her second shot soon. Then we are headed for an all-inclusive trip to a Sandals resort in Jamaica. I feel like I’m a little kid again waiting for Christmas, and the beach is my present.

Hopefully all is well with you and your families. Normally I include a Featured Home at the end of my monthly newsletter, but for the second month in a row, I don’t have any homes or condos available! I do have a nice four-acre parcel that borders National Forest which will be our Featured Property this month.