The Riley Report – Pagosa Daily Post News Events & Video for Pagosa Springs Colorado

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Hello From Beautiful Pagosa Country!

And happy 249th birthday, USA! Let’s get ready to celebrate!

It’s going to be a very busy weekend, but this year will be different from the past 42 Independence Days I’ve experienced here in Pagosa. With the Highway 160 construction going on downtown, the parade is a no-go. Instead, we will have a Stars & Stripes Stroll — a walking parade honoring our veterans and first responders.

This will happen at Yamaguchi Park, which is located just east of the high school on the river. Yamaguchi Park will also be hosting an event with food, beer, and a free concert starting at 5:00pm. Then later on at 9:30pm, the fireworks should go off, depending on fire conditions. There will also be a concert earlier in the day at the Springs Resort featuring patriotic music beginning at 2:00pm.

If you need to cool off, join in on the Freedom Float. Grab an inner tube and your best red, white, and blue and jump in the river. That starts at 1:00pm. Of course, we will still have the Arts & Crafts Fair with lots of food and a beer garden that goes for three days starting at 10:00am on the 3rd through the 5th. Last but not least is the 75th Annual Red Ryder Rodeo which is also a 3-day event on the 3rd, 4th, and 5th.

I want to remind you that the downtown merchants have been struggling to survive due to the major reconstruction of the highway in front of their businesses. Please go out of your way to shop and eat and drink with them. They really need your support.

Now for the latest real estate news. Total year-to-date sales are up 3%, with 302 this year versus 292 last year. Home sales are up 12%, condo and townhome sales are up 3%, and vacant land sales are down 5%.

Looking at the numbers for the first half of the year shows two different stories. In the first quarter, sales were up, and in the second quarter, sales were down. Sales and pending contracts have both been soft for the past three months in a row.

June sales were down 25% with 45 this year compared to 60 in 2024. Pending sales are the same story; down 25% with 65 this year compared to 87 last year and 117 back in 2023. With pending sales low, it’s likely that sales next month will be down again.

This downward trend in the market coincides with the announcement of tariffs and the accompanying stock market turmoil. Many people’s 401Ks took a hit during this time. The good news is that the market has since bounced back, but there is still uncertainty as to what the effect of the tariffs will be. In the meantime, the Fed is sitting on the fence holding off on lower interest rates in order to see what the tariffs will do to the economy.

In the meantime, mortgage rates which had been hovering in the 7% range have recently started to come down. A 30-year mortgage is currently at 6.67% and a 15-year is at 5.91%. This is the lowest we’ve seen for several months.

Accompanied buy a slowing job market, this may give the Fed a reason to drop the prime rate as early as September. I’m expecting one or two rate cuts this year and more to come in 2026. All this being said, I don’t expect much of a rebound in our local real estate market until mortgage rates get below 6%.

We’ve been talking about sales, now let’s talk about inventory. Home inventory is up about 26% with 255 homes on the market today compared to 202 a year ago and 168 back in 2023. Inventory for condos and townhomes is flat along with vacant land. There have been 56 building permits issues for new homes so far this year compared to 78 at this time last year. Make sure to check out all of the charts and stats included here.

We are now in a buyer’s market. Buyers are still willing to pay top dollar for a cherry, but they are cautious and looking for a good deal.

My sellers fall into two camps. Some of them have to sell, and some of them will only sell if they get their price.

The majority of sellers think their home is the prettiest one on the block, and they are hoping to get top dollar. Unfortunately, this leads them to overprice in a down market. They think that they are leaving themselves room to negotiate with an offer on the table, but the reality is that this strategy rarely works.

The truth is that you get the most attention and the most showings in the first week your property is on the market. If your property sits on the market too long, buyers begin to think there is something wrong with it, and they’ll offer less than they otherwise would have. If you price aggressively from the start, you have a much better chance of getting multiple offers and putting more money in your pocket in the long run.

So long for now! I hope you and your family have a fabulous 4th of July. I want to give a special thanks to our military, their families, and our first responders.