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 . . .