Why Buy Now in Santa Fe?

"Oh the weather outside is frightful, but the fire is so delightful." If you haven't been here lately, we've been blessed with snow! The mountains are covered and the ski areas are cashing in on the white gold. Temperatures are cold, but the sun is warm. The historic plaza is starting to look a lot like Christmas and even the City of Santa Fe offers free downtown parking on certain days.

You might think that now is not the time to buy a house in Santa Fe. And making an acquisition this time of the year, just doesn't make sense.

I would have to strongly disagree with you for several reasons. Interest rates are low. Prices are way down. And in our local real estate market (sometimes an "island" from the rest of the country) has a diminishing supply of quality listings. Whether it's the coveted historic eastside, vista filled Sierra del Norte, close-in South Capitol or luxurious Las Campanas, the listings that offer value and quality are selling.

Right now, there's a good selection of properties from sellers who want to sell. Sellers keeping their homes on the market through the holidays are motivated and/or ready to sell. Typically, a lot of listings will come off the market in the winter, but I think this is a bad move if you really want to sell.

Tip to Sellers:

"Oh the weather outside is frightful, but the fire is so delightful." In our market, many sellers do not want to have their home on the market during the holidays and/or winter. I think that's great if you don't want to sell your house. But if your goal is to sell your house, you have to keep your property on the market for the duration as there's a still a chance the buyer could come through. There are a lot of sellers who still remove their property from the market during the holidays, which actually creates less competition and let's everyone know that they are not serious about selling their property. I'm encouraging my sellers to keep it on the market so they don't not miss out on buyers.

These tactics may have worked in the past, but not anymore. There will be a flood of new "old" listings coming on the in the spring, so it will be difficult to stand out.

Tip to Buyers:

Work with an agent who is on top of the market and in tune with what is coming on the market and watching the price reductions. Get out and view the inventory! Sunday afternoon is full of opportunities to view open houses all over town. Don't delay and second guess your purchase. If you find something you like and it's properly priced, go for it! If you don't, you will miss out, especially if it's a deal! Over the past 30 days, I've seen at least 3 properties that have gone under contract within a few days of being on the market. Some even had multiple offers! I'm not saying that the glory days are back by any stretch. You have to remember that there are other buyers looking for the same "deal" that you are.

In closing, here's a great article from Business Week about buying now. It shows a great comparison of buying now with interest rates low, verses waiting for prices to drop. "Let it snow, let is snow, let it snow!

What's Selling?

First of all, it's been some time since I posted on my blog and I apologize for that. Things have actually been very busy, for which I am very thankful.

If the local newspaper were all you were reading, you'd think that nothing was selling in Santa Fe. While the market is slow, properties are indeed selling. In fact, 313 properties in Santa Fe County have sold over the past two and a half months. That's exactly the same amount of homes that sold in the same time period for 2008. Could this be a signal that our market has leveled off and not declining? The devil is in the details!

9/1/2008 to 11/17/2008
Median Sales Price $379,650*
Sales Price % of List: 92.63%*
Median Days on Market: 162*

9/1/2009 to 11/17/2009
Median Sales Price: $325,000*
Sales Price % of List: 95.24%*
Median Days on Market: 137*

The trend is that the marketing time is shortening with fewer days on the market, properties are selling almost 3% closer to list price than the same time period last year, but the median price has decreased almost $45,000. The median sales price is not as much of a shocker given the 1st-Time Homebuyer Tax Incentives. In our market, most 1st-time homebuyers are buying under $350,000.

With so many properties to choose from, the ones that stand out and sell are the ones that are priced right and present a good value. I've always said, "priced right is half sold." It couldn't be more true in today's market!


We had a guest speaker from Sotheby's Mountain Region at our office meeting this morning and he shared some really good insight. In addition to the normal stats and figures, he said that just as "Cash is king, now pricing is king to get properties sold in the current market."

If you're a seller, pricing above the market is a waste of time. "Priced right is half sold" is the way to go. Put yourself in the buyer's shoes. If you were looking for a home, you'd be looking for the same thing--price and value. And more importantly, look at your home relative to the properties selling around you (the key being selling, not active listings). Look at your house from the buyer's perspective, because in a buyer's market, the buyer is always right!


If you're a buyer, know that just because there are a lot of properties on the market, doesn't mean they are all a good value. It's my experience that of all the listings, about 10 to 15% are "quality listings", meaning that they are a good value, in relatively good condition and priced right. Trying to weed through the abyss of listings is why you want to work with a broker who knows the inventory. Looking at the quality listings will give you the right take on the market.



As we wind down 2009, we are seeing pricing close to what we saw six to nine years ago! Don't miss this window of opportunity! If you find a property you want, go for it. Or some other savvy buyer will.

*Data deemed reliable, but not guaranteed.

Sellers, Make Your Home Shine Brighter than the Competition!

With so many homes for buyers to choose from, sellers, now more than ever, have to make their home shine brighter than the competition.

Here's a link for some great ideas to set the stage. And remember, in a "Buyer's Market", the buyer is always right!

This has been a busy summer and have not had time to post. The 2009 Indian Market was a huge success in Santa Fe and business has ticked up a bit. I am keeping busy with more buyers and several really nice listings. Still swamped with real estate work, but thought I would share some more positive news in my industry from this recent article:

Positive Signs: Home Prices on an Upswing in Second Quarter 2009Read more:

RISMEDIA, August 26, 2009-Data through June 2009, released by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, show that the U.S. National Home Price Index improved in the second quarter of 2009. The S&P/Case-Shiller U.S. National Home Price Index- which covers all nine U.S. census divisions- recorded a 14.9% decline in the 2nd quarter of 2009 versus the 2nd quarter of 2008. While still a substantial negative annual rate of return, this is an improvement over the record decline of 19.1% reported in the 1st quarter of the year. The 10-City and 20-City Composites recorded annual declines of 15.1% and 15.4%, respectively. These are also improvements from their recent respective record losses of -19.4% and -19.1%.
“For the second month in a row, we’re seeing some positive signs,” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “The U.S. National Composite rose in the 2nd quarter compared to the 1st quarter of 2009. This is the first time we have seen a positive quarter-over-quarter print in three years. Both the 10-City and 20-City Composites posted monthly increases, as did most of the cities. As seen in both seasonally adjusted and unadjusted data, there are hints of an upward turn from a bottom. However, some of the hardest hit cities, especially in the Sun Belt, show continued weakness.”
As of the 2nd quarter of 2009, average home prices across the United States are at similar levels to what they were in early 2003. From the peak in the second quarter of 2006, average home prices are down 30.2%.
The 10-City and 20-City Composites posted their second consecutive monthly increases. Both indices were up 1.4% in June over May, and up 0.5% in May over April. Eighteen of the 20 metro areas saw improvement in their annual returns compared to those of May. Looking at the monthly data, the same 18 metro areas reported positive returns in June.
In spite of the recent positive data, the overall numbers remain weak, with all metro areas and the two composites posting negative annual returns, and 15 out of the 20 metro areas reporting double digit annual declines. While not alone, Las Vegas and Detroit continue to be two markets that are struggling severely. These are the only two markets that fell in June and saw deterioration in their annual rates of return. Since their relative peaks they have fallen 54.3% and 45.3%, respectively.
More upbeat news is seen in the monthly data across other markets; Dallas and Denver have reported four consecutive months of positive returns. In addition to the two composites, 13 of the MSAs reported positive monthly returns for June that were greater than +1.0%.
The table below summarizes the results for June 2009. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data.

2009 Q2 2009 Q2/2009 Q1 2009 Q1/2008 Q4 1-Year

Level Change (%) Change (%) Change (%)

U.S. National

Index 132.64 2.9% -7.4% -14.9%

June 2009 June/May May/April 1-Year

Metropolitan Level Change (%) Change (%) Change (%)

Area

Atlanta 107.52 1.5% 0.5% -13.7%

Boston 152.71 2.6% 1.6% -5.9%

Charlotte 120.66 0.7% 0.9% -9.6%

Chicago 124.99 1.1% 1.1% -16.7%

Cleveland 106.38 4.2% 4.1% -3.0%

Dallas 119.68 2.7% 1.9% -2.2%

Denver 126.92 2.5% 1.3% -3.6%

Detroit 69.49 -0.8% 0.2% -25.0%

Las Vegas 107.31 -2.0% -2.6% -32.4%

Los Angeles 160.90 1.1% -0.1% -17.8%

Miami 145.37 0.5% -0.8% -23.4%

Minneapolis 113.48 3.1% 1.1% -19.8%

New York 171.49 0.4% 0.2% -11.9%

Phoenix 104.73 1.1% -0.9% -31.6%

Portland 148.47 1.0% 0.1% -15.2%

San Diego 147.31 1.6% 0.4% -16.0%

San Francisco 124.70 3.8% 1.4% -22.0%

Seattle 149.53 0.4% -0.3% -16.1%

Tampa 140.90 0.4% 0.0% -19.5%

Washington 174.32 2.8% 1.3% -11.8%

Composite-10 153.20 1.4% 0.5% -15.1%Composite-20 141.86 1.4% 0.5% -15.4%

For more information, visit http://www.standardandpoors.com/.

Read more: http://rismedia.com/2009-08-25/positive-signs-home-prices-on-an-upswing-in-second-quarter-2009/#ixzz0PIMrKYHC

What's Going on with Inflation and Interest Rates?

Whats Going on with Inflation and Interest Rates?by Barry Habib, Chairman, Mortgage Success Source

With concerns over inflation increasing, FOX Business News called in Mortgage Success Source’s Barry Habib to break down what’s really going on and what it means to consumers. Watch as Barry Habib, who is chairman of Mortgage Success Source, explains how inflation impacts rates and what to look for in future!

Watch This Informative Video Now!

As Chairman of the Board, Barry Habib is the driving force behind Mortgage Success Source. With more than 23 years experience in the mortgage industry, Barry is recognized as an expert in mortgage and housing. In addition to his mortgage experience, Barry has successfully managed a Hedge Fund, authored a stock advisory newsletter, owned an insurance agency, and acted as managing partner in a real estate investment company. Barry’s financial advice and experience is highly sought after by major news networks, like CNBC and FOX, and he is a highly recognized speaker in the banking and mortgage industry.

Existing-Home Sales Rise 3.6% in June

Things are looking up!

Ok, I'm a little lazy with this post, but I have actually been very busy with real estate. A good read none-the-less.

Signs of Change: Existing-Home Sales Rise 3.6% in June

RISMEDIA, July 24, 2009-Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June, according to the National Association of Realtors®.
Existing-home sales-including single-family, townhomes, condominiums and co-ops-increased 3.6% to a seasonally adjusted annual rate of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2% lower than the 4.90 million-unit level in June 2008.
Lawrence Yun, NAR chief economist, is hopeful about the gain. “The increase in existing-home sales occurred in all major regions of the country,” he said. “We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions. Despite the rise in closed transactions, many Realtors® are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year.”
A June survey of NAR members shows 3% experienced at least one lost sale as a result of the new Home Valuation Code of Conduct, with seven out of 10 reporting an increased use of out-of-area appraisers. Seventy percent of NAR appraiser members said consumers were paying higher fees, while 85% report a perceived reduction in appraisal quality.
“Clearly the process needs to be revised, but the most logical approach is to use appraisers with local expertise, industry designations and access to local data, who make a physical examination of the property and use apples-to-apples comparisons with nearby home sales,” Yun said. “In many cases, normal homes are being compared with distressed homes sold at a discount, which often are in subpar condition-this is causing real harm to both buyers and sellers.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.42% in June from 4.86% in May; the rate was 6.32% in June 2008. Mortgage interest rates have trended lower in recent weeks.
Total housing inventory at the end of June fell 0.7% to 3.82 million existing homes available for sale, which represents a 9.4-month supply at the current sales pace, down from a 9.8-month supply in May. Raw inventory totals are 14.9% below a year ago.
“This is another hopeful sign-if we can keep the volume of sales above the level of new inventory, prices could stabilize in many areas around the end of the year,” Yun said.An NAR practitioner survey in June showed first-time buyers accounted for 29% of transactions, unchanged from May, and that the number of buyers looking at homes is up nearly 12 percentage points from June 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are very good opportunities. “Despite some of the challenges, the housing market continues to demonstrate signs of recovery,” he said. “The temporary first-time buyer tax credit is clearly helping people make a decision and is contributing to the overall stimulus impact, but since it’s taking longer to close transactions, many would-be beneficiaries may not be able to take advantage of the credit before the December 1 expiration date. As a consequence, consumers need the expertise of Realtors more than ever to navigate both the obstacles and opportunities in today’s market.”
The national median existing-home price for all housing types was $181,800 in June, which is 15.4% below June 2008. Distressed properties, which accounted for 31% of sales in June, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.
Single-family home sales rose 2.4% to a seasonally adjusted annual rate of 4.32 million in June from a level of 4.22 million in May, and are 0.2% higher than the 4.31 million-unit pace a year ago. The median existing single-family home price was $181,600 in June, which is 15.0% below June 2008.
Existing condominium and co-op sales jumped 14.0% to a seasonally adjusted annual rate of 570,000 units in June from 500,000 in May, but are 3.1% below the 588,000-unit level in June 2008. The median existing condo price was $183,300 in June, down 18.9% from a year ago.
NortheastRegionally, existing-home sales in the Northeast rose 2.5% to an annual pace of 820,000 in June, but are 4.7% below a year ago. The median price in the Northeast was $249,400, down 5.9% from June 2008.
MidwestExisting-home sales in the Midwest increased 0.9% in June to a level of 1.10 million but are 1.8% lower than June 2008. The median price in the Midwest was $157,000, which is 9.1% below a year ago.
SouthIn the South, existing-home sales rose 4.0% to an annual pace of 1.81 million in June but are 3.7% below a year ago. The median price in the South was $163,200, down 11.9% from June 2008.
WestExisting-home sales in the West improved by 6.4% to an annual rate of 1.16 million in June, and are 11.5% higher than June 2008. The median price in the West was $214,800, which is 24.9% below a year ago.
For more information, visit http://www.realtor.org/.Read more: http://rismedia.com/2009-07-23/signs-of-change-existing-home-sales-rise-36-in-june/#ixzz0MEinhc7f

Market Confusion?

In a CNN interview, Warren Buffet was talking about coping with the current economy. He said, “If you are fearful and confused, you don’t get over being fearful until you get over being confused.”

Not all homes are created equal in the Santa Fe market. For people looking to buy a home here, the cost per square foot is all over the board. The range can be anywhere from $180 per square foot to over $1,000 per square foot! "On paper" a listing may look great when you're calculating price per square foot, but when you actually see it, disappointment settles in.

So how do you avoid the confusion? So many things need to be factored in when trying to determine market value: location, views, finish level, details, materials used, single or two story, lot size, floor plan, design, functional and economic obsolescence and more. Work with a professional who knows the market inside and out.

Now to address the other part of Buffet's statement: getting over being fearful. Start by defining what you're fearful of. Are you terrified of overpaying and not buying at the very bottom of the market? Do you think a better house will come on the market if you wait? Are you thinking interest rates will go down even further?

Remember, there won't be a red light indicator to announce that we have finally arrived at the bottom of the market. You have to watch the market closely and look for the indicators. Things like prices stabilizing, more properties selling, fewer discounts, and a closer balance of supply and sales.

Santa Fe was relatively insulated from the rest of the country with foreclosures and rapid appreciation. Unlike the Las Vegas, Miami and California markets, Santa Fe grew at a conservative, steady pace. I believe that built stability into our market and helped preserve equity.

No one likes to overpay and everybody wants the lowest interest rate. I believe that our market hit the bottom about 2 months ago and has stabilized. While I think prices will be somewhat flat for the next 3 years, interest rates will not. Look for increases in the next 9 to 12 months. And when rates go up, I believe it will be so fast, almost overnight and with a 1 to 2% move. Take advantage of the low prices and maximize your buying power with low interest rates.

Hope you're a little less confused after reading this. I'm always happy to meet with you in person and talk in-depth about the various factors in the Santa Fe real estate market. I love the City Different and am happy to help demystify your home buying or selling process however I can.

Time to Buy!

Timing is everything! A few weeks ago on a Friday, we were blessed with a foot of fresh snow at Ski Santa Fe. The bummer was that the ski area had closed two weeks prior, so to take advantage of this "gift," you had to hike up the mountain on your own. Not an easy task considering the elevation starts around 9,500' above sea level up to over 12,000'!

On Saturday, the weather cleared with lots of sun and just a little bit of wind. The conditions were perfect. Waiting another day would turn the light, fresh powder into mush which wouldn't be worth skiing. I seized the opportunity and had a blast, not to mention a great workout.

Our current real estate market conditions are somewhat the same. Timing is everything. The upside today is that home prices have come down and interest rates are ridiculously low. But there's a downside looming around the corner--inflation. The current administration is spending so much money that inflation is inevitable. Your hard earned dollar will have less buying power with inflation.

So what does inflation do for the real estate market? My research indicates that one way inflation will affect the real estate market is by causing interest rates to go up. Some estimates indicate that by the end of the year, we'll be looking at 6.75% on a 30-year fixed mortgage (non-jumbo). Today, they're around 4.75%. So what will a 2% shift cost you? Well, on a $400,000 mortgage, that 2% difference will cost you more than $500 more per month! Here's a link to a great article with more details.

Talk about less buying power! That same mortgage payment on $400,000 at 4.75% is equal to, more or less, about a $320,000 mortgage at 6.75%, so you just lost $80,000 of buying power. Not my idea of a good deal!

The time is NOW not only to acquire real estate at a low price, but also to get the most out of your money with a fixed mortgage at a low interest rate. Carpe Dinero!

Spring Snow Storms

Spring time in New Mexico! You just never know what the weather will do. Last Monday, I thought that I had skied my last run at Ski Santa Fe by hiking up (ski area closed April 5th) and skiing the fresh foot and a half of snow they received. Then, another storm rolled through on Friday and dumped another foot of powder. Just too much to resist, so hiked up again with a few friends and, as you can see from the picture, had a great run down Parachute.

The local real estate market is kind of like the weather, somewhat unpredictable, but exciting none-the-less.

There seems to be a bit of a positive shift in the market with buyer confidence gaining ground. With tax day behind many buyers, they are getting out and about and taking advantage of low prices, good selection and low interest rates. Showing activity is up on my residential listings, but land is still very, very slow.

The second home segment of the market is lagging behind, so prices are more negotiable than they have been in the past. So if you're considering a second home, now is a great time to cut a deal.

Santa Fe offers a great quality of life, a lot to do for the active lifestyle, incredible weather, world-class dining, culture and natural beauty. What more could you want? Live your dream!

What's the Buzz?

As a hobby beekeeper, I'm preparing for the bees to emerge from hibernation. On some of our recent sunny, warmer days, the bees have come out and about from their slumber. It's usually not the whole brood that emerges, just a few, unless they find something interesting.

Case in point, yesterday was a beautiful day and I noticed a few bees buzzing about. So to give them a little boost, I put out about a cup of honey water. It didn't take long for the word to get out about this gourmet treat. In no time at all, lots of bees were buzzing about this delectable deal. I was amazed that the bees were able to retrieve all of the honey water within a few hours.

This is a great way to picture the current real estate market in Santa Fe, New Mexico. Buyers are starting to emerge and realize the great opportunities out there. Although not currently a feeding frenzy, great deals are being snatched up. Once these deals are gone, they're gone. It's only the buyers who are willing to take advantage of the deep discounts, low interest rates and good selection who will benefit the most.

It's my opinion that there are some great deals for buyers and this condition will not last. Interest rates are incredibly low, often with a window of a few hours of being able to lock in the 4 5/8 % range. If you find a deal, don't delay.

I believe that pricing discounts for buyers will not be as great from about late spring through summer, as that's one of the most beautiful times in Santa Fe. Properties show better with the landscaping at its best. Lilacs are beginning to bud out, and tulips, daffodils and many other bulbs are blooming. Fruit trees and aspens are just about ready to leaf out as well, so don't delay in buying. Carpe Diem or more appropriately, Carpe dinero.

Top 10 Things to Expect in the Housing Market in 2009

Today's entry is an easy one as I'm recovering from a day of spring skiing in Taos, New Mexico. Just trying to help stimulate the local economy. Great weather and ski conditions.

The question that everybody wants answered, "What's going to happen in 2009?" Here are some interesting points. Have a great weekend!

Click here: Top 10 Things to Expect in the Housing Market in 2009 : HGTV FrontDoor Real Estate

Some Market Movement?

At the time of this posting, a few areas of Santa Fe have experienced some positive movement over the past week. This is NOT an April Fool's joke. It's encouraging to see this type of activity. So where's "the action"? The Northwest quadrant (excluding Las Campanas) seems to be gaining some steam with 3 properties in the $600,000 to over $800,000 range that went under contract. Having viewed a good bit of the inventory in this area, I feel that properties that priced to sell are finally paying off and buyers are taking advantage of the deals out there. Like I always say, "priced right is half sold."

Another area enjoying some activity is Eldorado, and surprisingly, 4 properties above $450,000 went under contract last week! A bit surprising considering that the median price in Eldorado is currently $419,000 and of the 16 homes that have sold so far this year in Eldorado, the average sales price is just over $367,000. This upper-end shift in sales is encouraging and believe that it gives some insight to this crazy, unpredictable market.

These are just two areas that stood out as far as activity is concerned, but looking at the market as a whole, what I see selling are homes for full time users. People still have to have a place to live and what better time to buy it than now--low prices, low interest rates and pretty good selection. The second home market seems to be quite slow as people are being very cautious in spending those discretionary dollars. In my opinion, primary residence sales are out pacing second home sales.

Where are the prices going? I can only estimate that the typical primary residences will be holding their values and we will see fewer deals out there. Typical vacation homes will be a little more unstable. Santa Fe offers a great quality of life with four "gentle" seasons. People relocating here are living their dream now, versus waiting for the bottom or the economy to improve or a number of other things. You can't spend your life waiting for everything to be perfect. Often that's the best way to miss the boat entirely. We only have a certain amount of time on this planet, so live your dream now!

New Federal Tax Credit Provides Opportunity For First-Time Homebuyers

Effective January 1, 2009, qualified first-time buyers may be eligible for a federal tax credit of up to $8,000.00. Some highlights below:FOR FIRST-TIME HOMEBUYERS ONLY:Qualifying homebuyers have not owned a principal residence during the three-year period prior to the purchase.AMOUNT OF THE TAX CREDIT:Equals ten percent (10%) of the home's purchase price up to a maximum of $8,000.00.LIMITED TIME ONLY:The tax credit is available for homes purchased on or after January 1, 2009 and BEFORE December 1, 2009.NO REPAYMENT REQUIRED:Unlike the previous tax credit, this tax credit does not have to be repaid, but homebuyers must use the residence as a principal residence for at least three years OR face recapture of the tax credit amount.TAX CREDIT IS REFUNDABLE:The Homebuyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. A refund check may be issued to the taxpayer for a portion or even all of the refundable tax credit (depending on the taxpayer's tax liability).INCOME RESTRICTIONS:Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. (Partial tax credits may be available for taxpayers with incomes over these limits. Restrictions apply and the borrower should consult their tax advisor for details).2008 TAX RETURNSTax credit can be claimed on 2008 federal income tax returns IF the home was purchased on or after January 1, 2009.

Troy Lepisto
Home Loan Consultant
Santa Fe, NM 87505
505-984-0297 Office505-670-6399 Cell
1640 Old Pecos Trail Suite D
Mail Stop: MSN-BR465-8Santa Fe, NM 87505

Spring Real Estate Market 2009

Spring has sprung and our real estate market is still moving along at a slow-and-steady pace. What I've noticed most is that the inventory levels of quality, well-priced properties are few and far between. This is proving to be frustrating for the buyers out there (and yes, they are out there) to find the right property.

My Advice to Sellers
If you're considering listing in the late spring like the rest of the world, get a jump on the competition, as the demand is still there. If you're thinking that you'll just rent your property instead of listing, be prepared for competition. The rental market has a large inventory to choose from which could prove difficult to procure a tenant. Prices seem to be declining in some areas, but I feel that we're at the bottom. Just because we're at the bottom doesn't necessarily mean that the prices will shoot up. My feeling is that prices will be flat for the next 2 or 3 years, so if you're thinking of waiting, consider the time frame. Our prices seem to be anywhere from those of 2003 to 2005. If you have not owned your home for that long, the current market could be the same as what you paid or even below that. If that's the case, all is not lost. You've had a place to live, probably an interest tax deduction and the "loss" is somewhat relative as chances are the market you're moving to has also decreased in value so your loss will be somewhat of "a wash."

My Advice to Buyers
Now is the time to take advantage of incredibly low interest rates and the large selection of homes. We're looking at historic lows and even tax credits for first time home buyers. Although we've been very fortunate in our market for foreclosed properties, be cautious about waiting for "Bank Owned Properties" as there is usually a reason why they haven't sold - bad floor plan, poor quality construction or bad location.

If you've found a property that you're interested in, make an offer, even if it's low. Give the seller a chance to respond and maybe work out a deal. If you can't come to terms, at least you know that you tried. Don't delay on properties that are a really good value, as another buyer will most likely snatch it away from you. I had that happen to some buyers of mine on a $1,125,000 property. Don't delay! Good houses sell more quickly.

To wrap it up, we're emerging from "the mud season" here. Trees are budding, bulbs are blooming and the beautiful city we live in still offers a great quality of life with some of the best weather and scenery around. Live the dream now!

Two steps forward, one step back

Movement in the market continues to be two steps forward, one step back. The upper end ($1M and up) market seems to have returned after a 30-day hiatus. However the properties that are going under contract seem to be very well priced and discounted to prices that we have not seen since 2000 to 2003. So there are some really good buys for those who have been waiting to buy into our market.Tax season is in full effect and will expect a little bit of a slow-down until the dreaded April 15. But with interest rates still very low, the buying opportunites are still out there and would expect this years tax season to be stronger than last year. I would expect mortgage interest rates to drop a bit and then remain stable. Also, jumbo loan rates will still be a bit higher. However, Countrywide Home Loans ( www.countrywidelocal.com/troylepisto ) is being rather aggressive in the jumbo market and have seen some of the best rates from them. It really makes sense to go after that share of the market as the jumbo borrowers typically are stronger financially and less likely to go into foreclosure. Lastly, tax incentives will be helpful for first-time homebuyers, but with a median home price around $400,000 in Santa Fe, some of those buyers will be squeezed out of our market and most likely to Rio Rancho or Albuquerque.

Cheap money, low prices

The real estate market is still fluctuating throughout Santa Fe with certain price ranges being more affected than others. The upper end market continues to move forward, but has begun to see some deeper discounts for those sellers wanting to expedite the sale of their home.For those buyers looking for the lowest payment possible in their price range, well, they should have locked their loan in January with some of the lowest rates I've ever seen. The rumor is true, some were getting loans with zero points for 4.75% on a 30-year fixed! For those buyers looking for the lowest price possible, now seems to be the time to do so. We are seeing prices that we haven't seen since 2003 and, in some cases, 2000! Trying to find the bottom is what all buyers are trying to do and cannot think of a better time to try and be at the bottom. More to come . . .