I did a quick review of the Pagosa Springs Area MLS Stats through the 3rd Quarter of 2012. The numbers were not too impressive. When compared to the same period of last year, Total Dollar Sales Closed was off by 13%. Looking more closely at the figures and isolating the Single Family Residence data showed more unimpressive numbers. As compared to the prior years’ first three quarters, the Closed Sales Dollar Volume was down by just under 16%. The total number of units sold were also off, 173, versus 197 for the prior year. As expected, the median and average selling prices were down as well. To some degree these figures reflect the continuing negative impact of foreclosure or distress sales. On the positive side, the inflow of foreclosure properties into the Archuleta County pipeline is lessening and we expect to see a greatly reduced impact on prices as we go into next year.
The figures here at Pagosa Source for the first half of the summer were discouraging as fewer people were in the area looking at property, due in part perhaps to the fire in the Upper Piedra as well as the negative publicity surrounding the terrible fire northwest of Colorado Springs. For the second half of the summer, our numbers here at Pagosa Source turned around significantly as we closed the sale of three or our $1 million + listings within a two week period. We worked hard to achieve those sales and are continuing to be as creative as possible to generate more sales. The number one source of new business for Pagosa Source is referrals from past and present clients and customers, for which we are extremely grateful.
A positive factor at work in the market place is the extremely low mortgage interest rates available to qualified borrowers. Currently, lenders are quoting rates at or slightly below 3.5%. By anyone’s measure, that is extremely cheap money. When interest rates were at 5.5% (still cheap by historical standards) the monthly payment required to service a mortgage of $200,000 was $1,135. At 3.5% interest, the monthly payment amount is $898, a savings of $237. For anyone that does not currently own a home, now is the time to buy. There is a good selection of inventory, with very favorable pricing, compared to where the market was in 2005-2007. Additionally for those that qualify, interest rates the lowest they have ever been. If you are looking at buying, carefully consider several important features. Location: buy where you have well-maintained access and good central water and other utilities. Consider owning within an area that has protective covenants. Historically, values do better with land use protections than without. Also, stay within a reasonable distance from town and the conveniences of shopping and medical services. We have seen a continuing trend for a closer-in preference among Buyers over the last five years. Be very careful buying bank-owned properties and don’t go that direction without using the services of a qualified broker with experience dealing in that type of property. It is a totally different experience than buying from a private party. If you have questions or concerns, give me a call without cost or obligation at 970 264-7000.
