2009 Compared to 2008
Residential
| Price Range |
Number Sold Since 1/1/09 |
| $0-99,999 |
21 ~ Down 8% (3 Foreclosures) Lowest sales price ~$35,000 |
| $100,000 - $250,000 |
98 ~ Down 2% (32 Foreclosures) |
| $250,001 - $350,000 |
48 ~ Down 2% (5 Foreclosures) |
| $350,000 - $500,000 |
19 ~ Down 21% (5 Foreclosures) |
| $500,001 - $650,000 |
10 ~ Down 28% (0 Foreclosures) |
| $650,001 - $800,000 |
3 ~ Down 78% (0 Foreclosures) |
| $800,001 - $1,000,000 |
3 ~ UP 50% (0 Foreclosures) |
| $1,000,000 + |
6 ~ Down 33% (0 Foreclosures)
Highest sales price - $1,800,000 |
| |
|
| Average List price for 2009 |
$480,221 ~ Down 001% |
| Average Selling price for 2009 |
$285,001 ~ Down 15% |
| Average Days on Market for 2009 |
576 Days - Up 174% (actively listed) |
Commercial statistics, which just show real estate, business opportunity or both.
| Number Sold Since 1/1/09 |
Average Selling Price |
| 9 ~ Down 40% |
$276,222 ~ Down 32% |
Vacant Land statistics show all lots and acreage up to 34.99 acres.
| Number Sold Since 1/1/09 |
Average Selling Price |
99 ~ Down 23% |
$83,2762 ~ Down 40% |
- There were 36 building permits issued for new, single family homes in 2009.
- There are 517 homes on the market and 910 pieces of land for sale. This is considerably down from 2008.
So…the short version is the number of sales are down, selling prices are down, foreclosures are up and the time it takes to sell a property is higher than I’ve ever seen it.
The Good News
One of the perks to buy in 2009 was the Home ownership Assistance Act. This allowed buyers who had not owned a primary home for the last three years an $8,000 tax credit. Recently extended and revised, homeowners who have owned a primary home for at least five years, sell it and purchase another primary home, may receive a $6,500 tax credit.
Purchase contracts must be finalized by April 30, 2010 and the transaction must be closed by June 30, 2010. The income limits for sales occurring from January 1, 2009 to November 6, 2009 were $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns. For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.
We saw sales directly attributed to this program in the lower price ranges and I feel we will continue to see more until this program expires.
The Not So Good News
I have two concerns in our real estate market for the short-term future.
While banks will be forced to free up lending, interest rates will rise. I think this will get some buyers off the fence but it will prevent others from being able to afford what their buying power can buy them at today’s rates. So buy today!
As of January 31, 2009, Wells Fargo is quoting 30 year fixed, conventional rate loans at 5.375% for homes under $417,000 and 6% for Jumbo loans, those over $417,000.
My second concern is a buyer’s ability to finance a second or retirement home. Lending will remain stringent and currently lenders do not care about assets. They only care about income. Retirees typically don’t receive a large monthly income because they don’t need it. They may have IRAs, stocks, real estate and mutual funds but they won’t qualify for a mortgage because of a lack of “income”. If you question my thinking, try to refinance your existing home loan. The one you’ve never had a late payment on. It will be a shocker.
2010 will see lots of challenges. There are several new developments on the slate, which may or may not break ground, including the Village at Wolf Creek. These decisions will have a bearing on employment, tax revenues and business growth.
The Good News Again
As dire as all this sounds, there is light at the end of the tunnel. Really. Lending will become more available toward the 2nd or 3rd quarters and that period is always a good time of the year for our market. Properties will sell if priced competitively. There are great deals out there. Buy now! Buyers will buy because after all, it is Pagosa! The really good news is that if we need to ride out this horrible economy, what better place to do it in!
I sincerely hope this coming year will bring you peace and abundance. If I can help with that in the real estate department, I’d be happy to be of service.
Kindest regards,
JoAnn Laird ABR, CRS, GRI, SRES
Broker Associate
Mobile: 970. 946.9700
Office: 970. 731.4065
Email: joann@joannlaird.com |
