From time to time, we check in on the real estate and new housing markets in Southwest Colorado. This week, Black Canyon Builders focuses on Pagosa Springs. Not only do we travel to Pagosa for our custom home business, the area is also part of our territory as an independent builder dealer (distributor) for Wood House Timber Frame Homes (which we can build or sell to your contractor).
Pagosa is located approximately 60 miles east of Durango, in Archuleta County in Southwest Colorado. The Continental Divide traverses the town with the southern tip of the San Juan mountain range framing the vistas in most directions. It’s a laid back town with a mixed population of vacationers, athletes, outdoor-oriented people and nature lovers. Outlying the town are working ranches, dude ranches and the infamous Bootjack Ranch, one of the most expensive properties ever sold in Colorado.
Real Estate Sales: Like most areas, Pagosa was hit by the housing bubble and economic slowdown. It’s still very much a buyer’s market. In general, prices have dropped, but not as precipitously as other areas. The pace of sales has slowed notably. Unfortunately, the town has been hit particularly hard with foreclosures.
According to realtor Lee Riley’s article in the Pagosa Daily Post, home sales for 2011 were up 32-percent above the same time in 2010 for the first half of 2011. Sixty percent of properties sold below asking price, at an average rate of 93-percent of asking. Approximately 10-percent of sales were for vacant lands, indicating that it’s a great time to buy land too.
With the market changing daily, 2009 numbers may be out of date. However, these mean prices were reported for Pagosa in 2009:
- All housing units: $405,376
- Detached houses: $443,206
New home starts: The Archuleta County Building Department reports that, as of the end of October, 31 permits had been issued for single family residences. That number is compared to 36 permits through the same period in 2010. The average construction cost per single family residence permit is $223,000. (This measurement may be inaccurate, as it refers to average, not mean costs.)
There is clearly optimism in Pagosa commercial market. Nine commercial permits have been issued to the tune of total construction cost over $1.1 million dollars. Same period in 2010 saw seven permits issued at only $228,000 (total).
All figures point to the same conclusion: it is a buyer’s market with amazing deals on vacant land and existing homes. Since the foreclosure rate in Pagosa was nearing 40-percent, some opportunities may be bank owned, while others may be just in time to strike a mutually beneficial deal with a person who needs out of a property.
Thanks,
Jared
