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.