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We have come to the end of a rather lackluster 2011 and are filled with optimism for the new year. Some of the indications from the real estate media are encouraging this cautious optimism in scattered markets around the country. Since our market is historically linked to real estate in other parts of the US, that creates a sense that improvements elsewhere wil translate to buyer enthusiasm for Taos! It is still a buyer’s market with a scarce amount of buyers. Those properties with “motivted sellers” are the ones that are selling. Financing in some instances is extremely tedious or non-existent, however, the qualified buyer can certainly find incredibly low interest rates and availabale lending. Sellers looking to reinvest in another market are in a great position to maximize their buying potential as well.
The overall Taos market including land and commercial as well as residential was down about 29% from the previous year (2010) and is less than half of what is was in 2007. We are seeing sales dominated by low end properties, some foreclosures and short sales with only about 20 homes sold over $500,000 in 2011. It requires patience and motivation on the part of the sellers. Keeping the property in pristine showing condition is essential. Buyers are illusive and in most cases totally unmotivated unless they are searching for a primary residence and in need of a home. The rental market is also difficult and the available rentals are mostly not so great at a high price. One would think this would translate into more sales!
Eventually, the real estate climate will shift and although it is impossible to predict, waiting for the absolute bottom of the market to try to buy is going to be too late for some of those on-the-fence buyers. Here’s to a most exciting and busy 2012!
Taos is blissfully experiencing some lovely snow storms for pre ski season accumulation! After a warm and sunny fall, the snow has started to fall in a kind of regular rotating pattern contrary to all the weather predictions for a dry winter. Keeping our fingers crossed for the best opening day in a while on November 23rd. Check out the webcam on www.skitaos.org for a great view of the slopes. “La Nina” please stay away!
The real estate market has been a bit more active in the fall season as well, although overall down around 27% from 2010 year to date. The Hondo Land Grant issue drags on in the courts with no decision forthcoming from the judge. However, title companies are insuring over the Land Grant deeds if previously insured and not exceeding the present value of the title insurance policy. The La Serna Land Grant issue has been resolved favorably.
Improvements in the pace of the market and, hopefully, the motivation of potential buyers is anticipated and expected in 2012. And a fabulous ski season is always extremely helpful to the overall economy of our resort town! Think snow!
An update for the first two quarters of 2011: The market in Taos has remained quite interesting so far in 2011 with the overall Taos market down 28% year to date over last year (2010) and average days on the market slightly longer at almost a year. It is overwhelmingly a buyer’s market with amazing opportunities for courageous buyers who are willing to dip their toes into the real estate market. The interest rates remain at record lows but lenders are not exactly easy to work with and down payment minimums may be rising which does eliminate some buyers from loan qualification.
Since Taos is primarily a resort marketplace, our condo sales have dramaticlly slowed over the last two years–some excellent deals out there! Land sales have slowed as well with siginificantly less new construction and difficult financing for vacant land (but not impossible).
The latest information on the national level regarding real estate sales is that prices will be stabilizing by the end of the year. This would indicate that the bottom of the market has been reached and it is really and truly time to buy!! And our sellers should be very motivated, flexible and realistic in their pricing–cherish each and every buyer who may come along.
The saga of the deeds filed in Taos County on behalf of the heirs of the La Serna Grant and the Hondo Grant has continued to inch along toward an eventual resolution. The 7,000 or so property owners who are affected by these actions still have problems with obtaining clear title and therefore the ability to sell, refinance and obtain title insurance in an already compromised real estate market.
However, proactively the title insurance companies have filed suit against the heirs as has the Town of Taos which has essentially created a temporary solution for most situations through an Endorsement over the Exception in a title insurance policy. This seems to satisfy most buyers and lenders allowing for the business of real estate to continue on a case by case basis. We are encouraged that these avenues are being pursued actively by various entities with resources to produce a resolution.
Again, this is a very complex issue which is being addressed in several different ways in order to reach a legal decision that will solve the problem now and in the future. Hopefully, legislation will be introduced in the next New Mexico legislative session (2012)that will create legal consequences for those who attempt to file fraudulent deeds in the future.
We want our real estate clients and customers to be informed so that they can make good decisions regarding property in these grant areas. It is most informative to follow the Grant Deed Saga in the Taos News online at: www.taosnews.com.
The most recent updates on the issues surrounding the filing of fraudulent deeds for the La Serna and Hondo Land grants can be found in the Taos News online at www.taosnews.com. The Town of Taos is working to have the La Serna grant deed recinded and voided which will also require a court order from a judge.
In the meantime, the various title companies and their underwriters are working to accomplish a temporary fix so that real estate in the disputed areas can continue to be viable. This involves insuring around the exception for the subject deeds which is called an endorsement. We are awaiting a decision by the state insurance commisson on this endorsement which is rumored to be forthcoming within the next 2 months.
The real estate industry is in the midst of a very complex and difficult issue in Taos County regarding historic Land Grant issues. Two deeds have been filed by members of the Hondo Land Grant and the La Serna Land Grant encompassing over 40,000 acres of privately owned property. These deeds have placed a cloud on the title of many thousands of properties causing title companies to be unable or unwilling to insure properties, lenders to refuse to lend funds for purchase or refinance and an inability to sell these properties.
Governor Martinez has just vetoed a bill passed by the legislature which would have nade it illegal to file fraudulent deeds. The fight to void or invalidate these deeds will continue in various legal ways and from various sources such as the Town of Taos, Taos County, individual and collective title companies and their underwriters, and private parties.
As this is a very complex issue, it is a good idea for interested parties to consult the Taos News website (www.taosnews.com) for updates and clarification as well as speaking to local realtors, title companies and local government officials.
All the indications for 2011 continue to show that the buyers are in control. In an entirely price driven market, we are seeing generally the most agressively priced properties receiving attention from potential buyers. The days of overpricing in anticipation of receiving a “lowball” offer are gone.
With very little new residential construction on the market, the inventory of existing homes must be in top condition and show like a model home. Now that spring is arriving (even in northern New Mexico), it is a great time to work on the curb appeal and landscaping of your home.
The numbers are in for the first quarter of 2011 and the news is mixed. The first two months of the winter were particularly dismal but things seem to be picking up in March and April. It is still very much a buyer’s market and the overwhelming majority of the residential sales are in the lower price range indicating that it is truly a price driven marketplace.
As a seller, your property must be priced well, you must be ready to negotiate, and the condition of the property should be flawless. Repairing a home reassures a potential buyer during the initial showing. One of the most difficult things facing a seller is the possibility that they paid more than the present market value of the home. The buyer has no interest in what the seller might have paid and will not pay an extra $15,000 just because the seller bought at the top of the market. The realtor’s job is to give the seller the concrete facts and price the property according to the comparable sales and homes on the market.
Sellers must be motivated, flexible and willing to price their properties correctly in order to convince buyers to engage in the buying process at all. In this resort/second home enironment in Taos, the buyers generally do not need to buy and not all sellers really need to sell. However, there has never been a better time to find a fabulous deal and an even more amazing interest rate!
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