We are seeing the pendulum pointing at a Buyer’s Maket, but is it starting to swing the other way? Unfortunatly I can not predict the future but I can look at a few indicators.
|2cd Qtr 06||2cd Qtr 07||Unit % Gain/Loss|
|Residential Homes||39||29||DOWN -25.64%|
|Vacant Land Lots (< 1acre)||71||51||DOWN -28.17%|
|Vacant Land 35 acre tracts||20||15||DOWN -25.00%|
MEDIAN SOLD PRICE
|2cd Qtr 06||2cd Qtr 07||Median Price % Gain/Loss|
|Residential Homes||$290,000||$310,000||UP 6.90%|
|Vacant Land Lots (< 1acre)||$52,900||$40,000||DOWN -24.39%|
|Vacant Land 35 acre tracts||$249,000||$285,000||UP 14.46%|
It’s obvious that we have seen a weaker spring this year than we did in 06. While individual unit sale are down , pricing structure remains relativly high. Looking at this one might think that there are worse days ahead, but there is one factor that points to a different outcome.
The average contract will close in a 6 week time period in Pagosa Springs.
Looking at the most recent 6 week period (end of may until now) our area MLS show 81 closed transactions. Currently there are 108 Pending Contracts. This tells me that we are currently seeing a 33% increase in market activity. Now, before you get too excited, this is NOT seasonaly adjusted. We are just now into our “Selling Season”.
Another factor in our market hinges on our current inventory. There is roughly twice as many homes on the market now as there was this time in 2006.
Put all of these factors in a basket and shake them around and what do you get? My best guess…and thats what it is, we will continue to see a slightly sluggish market for 9 to 12 months. Not a DEAD market but it will take a little time to see the slack come out of our current inventory.
If you are a seller reading this take heart. The market is still fairly fluid.To ensure a sale you just need to make sure that you are priced correctly and have your property ready to show easily.