REAL ESTATE: The Riley Report

Hello From Pagosa Country!

It’s cold outside! This morning it’s -4 degrees and one of the coldest days of the year. We got a fresh dump of snow a couple days ago, which totaled about 6 inches down here in town and 27 inches up at the ski area. This was the first measurable snow in about a month. It was great news for our drought conditions, and the skiers are loving it.

In local news, a petition regarding short-term rentals was just presented to the Town Council which will go to a vote on April 5. In general, the petition proposes a monthly fee of $150 per bedroom for VRBOs whose owners don’t live in their home at least nine months per year. This revenue would be put towards workforce housing.

The Loma Linda subdivision just south of town is considering a proposal to ban all vacation rentals of less than 30 days. This kind of thing is happening all over the state due to a severe lack of affordable housing.

Now for the latest real estate news. I’m having a very hard time fathoming the latest numbers and the lack of inventory. The last I checked, there were only 12 residential properties listed under a million dollars in the Pagosa Lakes area, which is where we sell most of our homes and land. That number includes trailers, condos, and stick-built homes.

Yesterday, there were only 40 residential properties for sale in the entire county, compared with 197 before the pandemic began.

There were 29 new listings entered in our MLS system in January. Out of those, 20 are already under contract or have sold. Most of the 40 properties available today have been on the market for quite a while. This is likely due to them being overpriced.

The last home I put on the market was a week ago. It was a 1400-square-foot home bordering National Forest with two bedrooms, two bathrooms, a one-car garage and a loft. We received five offers within 24 hours of listing the home, and it will end up selling for well over asking price.

Vacant land prices are also rising quickly. Spec builders are bidding up land prices, as they are anxious to get new projects off the ground so they can cash in on rising home prices.

Interest rates are on the rise. A 30-year fixed-rate mortgage is currently going for 3.75%. A 15-year fixed-rate note is at 3.125%.

The bottom line is the real estate market is on steroids. I just sent out 10,000 pieces of marketing mail which includes a nice calendar inside. If you receive one, I hope you enjoy it. My purpose was to solicit some new inventory for me to sell. If you know anyone who is ready to cash in on this windfall, please send them my way!