Southwest Colorado News

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

SOUTHWEST COLORADO LUXURY HOME

MARKET SNAPSHOT JULY 14, 2025

HIDDEN VALLEY RANCH HOME MARKETED BY MIKE HERATY

Though the sales within the Pagosa luxury second home market have slowed, properties are selling, and prices are up slightly from the prior year. (Median Selling Price YTD is $1,562,500 as compared to $1,410,000 at this time last year.)

There are 23% more homes on the market than a year ago. We continue to work through the increase in inventory resulting from the diminished impact of the home buying frenzy created during Covid.

Some buyers and sellers are pensive about the overall direction of the economy, this is spite of record stock market valuations, and overall employment growth. Expectations for a downward trend in mortgage interest rates have also impacted buyer behavior.

What lies ahead?

Affluent sellers and buyers are less impacted by the short-term difficulties of the economy. They have more liquidity, a more diversified portfolio of assets and income, and little or no debt. In softening markets, they are more empowered to drive harder bargains. As the saying goes… “Cash is King.” For sellers, bumpy market periods require more patience and less panic. Consult with your trusted real estate advisor to understand the elements in the market that are most important, whether you are buying or selling. Do not make rash decisions, access accurate and timely market data your Realtor will prepare, review, and interpret for you to get a clear picture of where the market is, and where it is headed.

We think it is unlikely interest rates will decline much ahead of sometime in the fourth quarter. The cost of new home construction continues to increase, which limits downward risk of existing home values. Here in Pagosa, the better custom builders have a two- or three-year backlog. If you can make a few compromises, you will save tons of money, years of time, and lots of headaches by purchasing an existing luxury home. If you are set on building the home you have always dreamed of and have set aside the money to pay for it, I understand.

Call me to learn valuable tips on the new home building process, contractor selection, and to explore the best existing luxury homes and the best values.

Mike Heraty, License Partner- ENGEL & VÖLKERS Pagosa Springs today. Take advantage of his 30 years of successful local experience and expertise.

Cell:     970 946-6030

Email:  Mike@pagosarealestate.com

*Pagosa Springs luxury homes are priced $1,000,000 and above.

If you have seen news headlines saying home sales are down compared to last year, you might be thinking – is it even a suitable time to sell? 

Here is the truth. Yes, the pace of the market has cooled compared to the frenzy we saw just a few years ago, but that is not a red flag. Market activity is trending towards normal. And normal does not mean nothing is happening. Buyers are still in Pagosa and coming to Pagosa – and homes are still selling.

Why? Because few people can wait for perfect conditions. There are always people who need or want to buy – and this year is no exception. Buyers who are in the middle of a tremendous change in their lives, a growing family, a new job, a recent inheritance, still need and want to acquire a place in Pagosa, no matter where mortgage rates are. And they may be looking for a home just like yours.

The Right Broker Makes All the Difference.

If you have been holding off on selling your house because you think buyers are not out there, let this reassure you – there are still buyers looking to buy.

But since the market is balancing out, selling today takes more than just putting up a sign in the yard and entering it in the MLS. You must know and understand the market conditions, your home must have the right pricing strategy, it must be marketed well, and you need to know how to reach the buyers who are ready to act. That is where a Trusted Real Estate Advisor at Engel & Volkers Pagosa Springs comes in. They will help you navigate this market, position your home to stand out, and guide you through every step. Call us on 970 264-7000.

Bottom Line

The market has not stopped. Buyers are still buying. Life is still happening. And if selling your home is part of your next chapter, we can make it happen.

11,000 homes in America are selling every day – and yours could be next. Connect with a Trusted Real Estate Advisor at Engel & Volkers so you have an Advisor to create that perfect strategy.

Here is something you need to know. The housing market is getting back to a healthier, more normal place. And even though it may not sound like it, this shift is a good thing.

It is what you should expect. It is just that our expectations have been skewed by the intense seller’s market over the past few years. But what you need to remember is: there is still plenty of opportunity to be had if you are thinking about selling – whether that is next month or next year. You just need to stay up to date on what is happening in the market and have a strategy that matches the moment. Call us today at 970 264-7000 or email me at Mike@pagosarealestate.com.

SOME SECOND HOME MARKETS SLOWING DOWN

Mike Heraty, License Partner-Engel & Völkers Pagosa Springs

The recent reduction in the Federal Funds Rate, helped lower 30-year mortgage rates down to the 6.0%-6.25% range. Though above the Covid-triggered rates of 2.5%-3%, the new rates on an historical basis, are reasonable. It may take some time, but if rates stay at or around this level, consumers will accept them and that should free up more inventory.

On a national level some second home markets have cooled down during the past year, due to the high rates and shifting buyer habits. There have been more all-cash purchases, but there have been fewer investment buyers in the second home market, causing prices to soften in some markets. Rental rates have stagnated, or in some instances, declined. This may be due in part to the trend away from remote work when larger companies are calling all employees back to the office. The vacation rental market in some areas became oversupplied from 2021-2023 and that factor also affected prices.

REAL ESTATE IS LOCAL

What about the market in Pagosa Springs? The Median Selling Price for single family detached homes in Archuleta County sits at $665,000, compared to $600,000 one year earlier, an increase of 11% year over year. So, the Pagosa market is bucking national trends. Why is this? Two big factors. First, limited inventory- we do not have production builders in our market, adding supply. Building costs are still high, there is a shortage of skilled construction workers and the time to complete a new home is significantly longer than in metro markets. Second, demand is still strong, despite higher prices and interest rates. Comparatively speaking, homes here are an excellent value in comparison to other mountain second home markets, and home prices in Pagosa are about 15% below Durango. Second home Buyers that have been priced out of Vail, Summit County and other mountain resort areas are finding their way to Pagosa Springs, where their money goes much further.

WHAT LIES AHEAD?

On the national level, economists at Goldman Sachs are predicting home appreciation levels of 4.4% for 2025. Expect mortgage rates to trend a little lower, but we also expect demand to continue to grow as the Pagosa area becomes more discovered. Meeting with a highly qualified, seasoned area real estate professional, who consistently studies the market is the most valuable first investment you can make in any real estate transaction. To discuss your circumstances and real estate goals, give me a call for a free consultation. I can be reached at 970 946-6030 or email me at Mike@PagosaRealEstate.com.

“ Frontline Heroes of our community: Health Care Workers, EMS, Law Enforcement, Fire Department, Emergency Services, Teachers and School District employees– be sure to visit The Lift Coffee House next to Mountain Pizza for a free coffee or espresso drink this month with thanks from Pagosa Source Real Estate Advisors.”

Will our national and local economic recovery be “V-Shaped” or “U-Shaped”? Will it be a quick and steep bounce out of the bottom, or will it be a slower, more gradual climb back up. Will the furloughed and laid-off employees gain their jobs and pay back, or will employers find they need fewer workers as things start to re-open?

Trying to formulate an educated guess of what a recovery will look like is no easy task and requires a coordination of three different sciences. This approach was proposed by some sharp real estate journalists that closely monitor changes in home buying behavior.

Business Science: How has the economy responded in the past to similar crises? How long did it take for employment to recover? This is a tough question to answer. We have never had this type of pandemic, this level of job loss and rapid decline in economic activity.

Health Science– How long will it take for Covid-19 to be controlled, and to research, develop and implement a vaccine? Will there be a second wave of infections, or will the virus mutate and return?  Health science is working around the clock to understand this virus and to find an effective treatment and vaccine.

Behavior Science—Once businesses open back up, how long will it take for people to feel safe and comfortable to return to their normal consumer behaviors?

How quickly will visitors feel safe taking a commercial flight from Dallas or Phoenix to Durango; enjoying a cold beer in a crowded local brewpub, attending a concert on Reservoir Hill, getting into a raft with ten other adventurers to ride down the San Juan River, or slipping into the Hot Springs with 6-8 friends and fellow visitors?

Trying to combine these three sciences to forecast the future of the economy creates lots of uncertainty and differing estimates.  Many Economists and Analysts project the recovery will take between 6 and 18 months. That seems like a reasonably educated guess. This will be a different real estate environment for sure.

Interested in knowing when it makes sense to request mortgage payment relief from your Lender and what impact that would that have on your credit? Do you want to know how local residential and commercial landlords are responding to the abrupt decline in local business activity and huge jump in unemployment claims?

What are the three most important factors if you are selling in this market? For Buyers- how do you know you are buying right in this kind of market? Learn how smart investors keep emotions from turning against them during these uncertain times. Watch for Part Three and Four, or call or text me at 970 946-6030, email me: Mike@PagosaRealEstate.com

Something Pretty DOWP is Here in Pagosa

I take my coffee and grab a seat. Before me sits a bright-eyed, curly-haired, handsome young man. He’s full of energy and ambition, and I can already tell he has the kind, considerate nature of a Pagosa Local. I have the pleasure of talking to Julian Caler, the co-founder of DOWP a snowboard group. 

As soon as he starts talking about his snowboards, I don’t have to do anything to urge him on. From the beginning, his passion comes through with every word. 

For five years now, Caler has been teaming up David Yerton. They design custom-made, one of a kind snowboards right here in Pagosa Springs. They build the brand around the energy and culture of snowboarders. The duo is funny and edgy and always ready to take on the next adventure. 

For Caler, snowboarding has always been a passion. It’s something that helps him relax and get away from stressful days. But designing snowboards is something he had to get talked into. 

It was David Yerton who talked Caler into designing and selling unique snowboards. Caler took a ski and snowboard business class in Steamboat Springs. He learned a few marketable skills and landed several internships in major companies. But after a company wanted him to move to New York City, he returned home to Pagosa Springs. 

That’s when Yerton convinced Caler that they should create their own boards. The ski and snowboard industry is one that’s hard to get into. So Yerton and Caler knew they would have to carve their niche to get a foothold in the market. 

They succeeded. Their boards are one of a kind from the design to the build to the backstory. Though Caler says their business isn’t enough to cover all the bills yet, it’s slowly but steadily growing and gaining a following. 

 What Makes DOWP Unique? 

They’re committed to creating high-quality homemade products. It sets them ahead of the pack, and their attention to detail shows. 

Yerton provides snowboard designs. But he’s been doodling them since he was ten. In the team’s first meetings he brought sketches and designs from over a decade go. His signature was always DOWP, and the duo knew they would stick to it for their company name. 

They make the boards from bamboo. This keeps the board light for the rider. But it also makes them more flexible, and more resilient than boards from other materials. 

To make the boards even better, they apply a polyurethane coat as a liquid. It dries as part of the bamboo board. Other boards have the polyurethane coat glued to the board. DOWP’s method makes the boards more flexible, more durable, and more resilient. 

But they also have a unique shape. Caler told me about two unique designs, for his boards. The first is square edges. At first, they were looking to create a unique-looking board. 

But when they tested the product, they found out the square edges gave the boarder better grip on the snow. This comes in handy when the rider goes to land a jump or another stunt. 

Other boards have a unique beavertail design. It’s designed to look like the mammal’s big flat tail. The beavertail design makes it easier to stay on top of fresh powder. The tail sinks in the back, giving the board more air over powder. The concept originated from a similar style on surfboards. But it applies to snowboards too, so the team ran with it. 

Each design is unique and full of personality. One design has Bigfoot eating a chocolate bar. Presumably, he tied the Boy Scouts behind him to the tree. 

Another depicts a bear sitting next to a roaring campfire. The smoke depicts a battle against the night sky. 

These boards have some of the coolest designs I’ve ever seen, and you’ll love them too. (Check out more cool styles on their Instagram here.)

Each board is a limited edition masterpiece. Once a snowboard sells out, they don’t make more. DOWP wants to see people who love their current board come back for a newer version, and ideally start a collection of DOWP snowboards. 

If you have a particular design you want on a snowboard, DOWP can make it happen for you. 

Why Pagosa Springs

Caler has lived in Pagosa since he was a kid. He moved away for a while going into college in Steamboat Springs. “It was more like two years of skiing and internships than college,” he tells me. 

But he didn’t like being away from this unique mountain town for long. Pagosa Springs is home for him. After a few years, he moved back and intends to stay. 

We talked for a while about how unique and special Pagosa Springs is. From its mountain views to rural ranches, Pagosa Springs calls to people from all over the world. There’s no other town like it. 

While Pagosa is a tourist town, it doesn’t feel like a tourist hot spot. Tourism is the industry, and yet, Pagosa Springs still keeps its own small-town culture. 

And Caler is a perfect example of its friendliness. I mentioned I drove my scooter to meet with him (in the rain) and without hesitating he let me know he’d be happy to give me a ride. 

Caler wants to see Pagosa grow, and he’d love to see DOWP grow as a part of it. But even if it doesn’t Caler says it’s something he knows he’ll always have. 

When he’s stressed, he can go work on a new snowboard and test it out on the slopes. He admits running and managing the business can get hard sometimes. But its also something he loves. When things get tricky, his passion helps him push through. 

No matter how big it grows, he wants to keep DOWP snowboards local. While he thinks it would be great for DOWP to get big enough to export production, he plans to keep his business here. 

How Can I Get a DOWP Snowboard?

You don’t have to be a local to love DOWP. These boards are great for anyone who loves to get into the mountains and into the snow, even for a few days a year. DOWP snowboards are a Pagosa treasure with a unique Pagosa Springs story behind them. 

Right now, boards run between $300 to $600. Prices are sure to go up soon. To get your hands on a snowboard of your own, contact DOWP a snowboard group on their site or via Instagram. 

Written by Juliara Baeten, Staff Writer for Pagosa Source Real Estate Advisors