THE CONTRARIAN VIEW FROM THE SOURCE
With rising mortgage interest rates, high inflation, energy costs, poor stock market performance, and a continuing war in Ukraine, why would anyone want to look at buying real estate in Pagosa Springs? Good question, and I have good answers below:
All the above influences have reduced the number of Buyers in the marketplace. The middle price range, now $400,000-$800,000 is more interest rate sensitive. Dozens of Buyers are no longer qualified to purchase, and they have left the market.
Energy prices have changed the behavior of consumers, in our case, the families with more limited discretionary incomes have found it too expensive to drive, let along fly to Pagosa for a summer vacation, so the demand has lessened for vacation rentals. With less rental income, several Owners with large mortgage payments, have decided to sell.
Upper-end Buyers are more influenced by what is happening to their stock market investments than rising interest rates. Returns of late have been disappointing. As a result, is higher-end homes on the market than a year ago.
All these forces are shifting the market to the beginning of a Buyers’ Market. Those that see this early on are going to benefit from greater negotiating leverage, due to more choices, and less competition. In short, smart Buyers, working with a good Real Estate Advisor, will make exceptional buys during this period, when the market has not recognized the shift. Call Pagosa Source now, at 970 264-7000 and let us discuss your situation.