June 15, 2010- Pagosa Area Water and Sanitation board voted for a 6 month suspension of the Water Resource Fee (WRF). ( Click here to read the article in the Pagosa Sun) This is one of the many named fees that has, how can I say it pleasantly, “not helped” economic growth in Archuleta County since being imposed in the early summer of 2006.
With the lifting of this fee, those that take advantage by building this summer, will be saving around $6,000 per single family unit or equivalent. The question asked by many is will this be temporary or will the 6 months lift turn into something more sustaining?
What does this mean for building and real estate in our town this year? Well, this REALTOR is not holding his breath for the market to break wide open due to this shift in fees. However this break, along with the correction in vacant land prices, will help to slightly increase small vacant land sales. (The price corrections in our market have more than doubled land sales in some sectors from last year.)
As far as building goes, it will stimulate a handful of second home builders to go ahead and pull the trigger this year on their retirement home plans. I will be watching very closely for a few brave souls who want to dip their toe back into the spec building market. I have had 2 conversations this week with 2 different builders who are quizzing me on the timing of this market.