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