Much of my writing over the last couple has been on the residential real estate market within Pagosa Springs. Much of our reader interest has focused on this component of the market and recently others have inquired as to the market conditions for home sites, small acreage and larger land parcels in the Pagosa Springs area.

I reviewed the sales statistics for land transactions for the last 12 months as well as the same periods going back for five years. No real surprises in that the market transaction and dollar volume peaked in 2005 and has been a steady downward trend ever since. Year to date sales figures reveal the market is down by 50% in transaction volume and 86% in dollar volume as compared to the same period one year back. This is bad news for Sellers, but good news for Buyers. There is plenty of inventory to choose from and land prices have come down from the peak period, with Sellers starting to aggressively re-price their listings now that spring is here.

Yes, there are still a lot of land offerings that are unrealistically priced, and, often the Sellers are either not informed as to where the market has moved, or they are not really serious Sellers and have decided to wait as long as it takes for the market to meet their price expectations. For Buyers that are serious about becoming involved in land ownership, we think this is a good time to start looking. We do have a couple of caveats.

First, don’t be concerned about trying to pick the perfect bottom of this market cycle. If you do, you will likely miss it, never invest, and become one of many “I could have’s” that you hear about at cocktail parties and other social gatherings.

Second, market conditions are not conducive to the buy and flip strategies of the past. You should be prepared to buy and hold your land investment for 3-5 years.

Third, when looking at land, remember that here in Pagosa Springs, what sells is location and view. You also want to be sure the property has good utility service, especially central water, and good maintained access.

And Fourth, use an experienced Broker that really understands the land market. It is not the same as the residential market. Use the research a good Broker can provide in terms of price trends and help with locating the areas that are likely to appreciate the most when the real estate cycle starts upward again. A good Broker will save you time and make you money. Use their services.

Call me anytime to discuss any real estate ideas or concerns you may have.