Pagosa Area Condo History:
The first condominiums in Archuleta County were built north of State Highway 160 and east of City Market, shortly after the Pagosa Lodge was completed in the mid 1970’s. Initially the units were marketed primarily to residents of Arizona. Most of the early condominium units were primarily intended as summer homes for those escaping the desert heat. The original developer of the area west of town known as Pagosa Lakes was Navajo Trails, which later sold to another developer from Arizona, Eaton International. Initially the condominiums sold in the range of $50,000-$70,000. The developer provided in-house property management to oversee rentals when owners were not using their units. The extra income generated made the condominium units affordable to a greater number of second home buyers. Eventually this management company, known as “Sunetha” was purchased by members of management and became independent of the developer. (Later it was sold to Vacasa, now Casago an international resort rental management company).
The Present-
So far this year, 20 sales closed, up from 14 for the same period in 2024. The long-term average number of sales closed by this date is 21, so the transaction volume in condominium sales is normal for this far into the year.
The Median Selling Price ($295,000) declined by 7% from the prior year, while the average price per square foot ($295) increased by 7%, these figures are a bit of a mixed signal. Inventory is up slightly as is the median number of days on the market. Over the period from 2015 to 2025, the Median Selling Price for condominiums increased just under 200% or, an average of 20% per year. After adjusting for the increase in property taxes, monthly assessments, and other costs of condominium ownership, this is still an elevated level of genuine appreciation.
The Future:
The prohibitive cost of new condominium and town home construction remains a strong headwind which protects the value of existing units. The required front-end investments in utility infrastructure as well as the ever-increasing cost of construction materials and labor has kept new developments on the sidelines. Until much higher selling prices are achievable we do not expect the supply of condominiums and townhomes to increase. Owners’ right to rent their unit when they are not using it is an especially crucial factor to protect some level of affordability and to enhance values. For these and other reasons, we expect existing condominiums that are updated and well maintained should continue to increase in value in the years ahead.
Othe Factors Impacting Condo Market:
Monthly condominium associations assessments in Pagosa currently range from $400 to $600 per month. Typically, the assessments cover items such as exterior building and landscaping maintenance, building insurance, snow removal, parking area maintenance and trash collection. Most of though not all condominium associations keep a prudent reserve built up for large future outlays such as roof and exterior siding replacements. These annual expenses have increased overall during the last five years and higher monthly assessments should be expected. Well-governed condo associations understand the wisdom of keeping reserve balances based on the projected future capital outlays. This is the preferred alternative to “surprise” special assessments.
Call, Text, or Email me for a confidential discussion of your real estate matters. With over 30 years of successful real estate experience, I am your Trusted Real Estate Advisor.
Michael R. Heraty
Managing Broker-Owner
ENGEL & VÖLKERS Pagosa Springs
Cell: 970 964-6030
Email: Mike@PagosaRealEstate.com
