There are so many events going on in the month of July, I get tired just thinking about it! In spite of morning smoke from fires to the south and west, Pagosa is THE place to be in the summer. While we are fortunate, neighboring communities who are battling fires are in our thoughts and prayers. For starters, there's the best 4th of July Parade this side of the Rockies, the Park to Park Arts and Craft Festival, the Town Carnival, and the Red Ryder Rodeo. And that's just on the 4th of July!

Some of the other events this month are the Pagosa Duathalon, Wyndam Arts and Craft Festival, Renaissance and Pirate Festival, Cruise-A-Thon, Music Booster's "South Pacific", Pagosa Center for the Arts "Sylvia" and live music all over town. Whew! So, I hope you are enjoying all Pagosa has to offer. ...But now about the real
estate market.

                                             2010                     2011

Homes Sold ~                          93                        110          UP 18%

Average Selling Price ~          $315,265              $303,864      DOWN 3.6%

Homes currently on the market ~  395 

Condos Sold ~                          13                         12          DOWN 7.6%

Average Selling Price ~          $146,780              $115,125      DOWN 21.5%

Condos on the market ~   93 

Vacant Land Sold ~                   41                        52            UP 52% 

Average Selling Price ~         $69,740                 $51,473        DOWN 26%

Vacant land on the market ~  766 (under 35 acres)

Commercial Sold ~                     6                          7            UP 16.6%

Average Selling Price ~               N/A                     N/A           UP 31%

Commercial on the market ~  89

As you can see, with the exception of condos, the number of sales are up across the board. However, you'll see selling prices are down in every category.

The conclusion I come to is that there have been too many foreclosures sold in the first half of the year that have affected the "average" selling price. We still have a way to go with foreclosures. I understand that August will be the peak month for 2011 for foreclosures coming on the market.

The up side is that I have been busier this quarter than I have been in years. There were days that I worked with three different buyers. Even though I was showing properties up to $5 million, the best selling price range for homes remain between $100,000 and $200,000. There are properties that are currently under contract.

CRYSTAL BALL REPORT
I think we still have two years to go before we stabilize. Lending is still tight, foreclosures abound, but... I am hearing more often than not from buyers they feel mortgage rates will rise and they feel better with a tangible asset than parking it in a negative inflationary CD or risk it in the stock market. I think there will be a time when people had wished they loaded up on real estate now.

Thank you for taking the time to study this newsletter. My goal has always been to educate you about my market. If I can be of help to you and yours with Pagosa Springs real estate, I'd considerate it an honor.

Kindest regards,

JoAnn Laird ABR, CRS, GRI, SRES
Broker Associate
Mobile: 970.  946.9700                             
Office: 970. 731.4065
Email: joann@joannlaird.com