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.