Spring Thaw

Spring is here and the tremendous amount of snow we received this winter is starting to melt. As the water trickles down, it fills the area rivers and streams. It's only a matter of time before this peaceful looking river will become a raging torrent!

Kind of the same picture of buyers in our current Santa Fe, NM real estate market. Slowly, they're trickling into our market. But the real question is, will there be a flood of buyers taking advantage of low prices and cheap interest rates?

While I don't see there being a raging flood of buyers, I have seen a lot more activity in our market - properties going under contract, more active buyers at open houses, more showings on my listings. Just recently, I wrote two offers in one day! Have not seen that in a long time.

I hope that this is a good indication that we'll have a lush market this summer. So even though the snow has been piled high, things are starting to give way to water which is life. In Northern New Mexico, a good spring run-off often means a lush, bountiful summer. Let's hope that holds true for our real estate market. There's still a lot of work to be done, but results are starting to show. Have a great spring!

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