The real estate market 2012 is up overall about 5% when compared to the first quarter of 2011 while the average sale price is down about 12.5% for residential sales; condominium sales remained the same with prices declining 20.1%.  Land sales are up as well with prices declining 26.8%.  Some of these numbers reflect the trend toward lower priced sales, both bank owned and privately owned properties.  Approximately 25% of the residential transactions were bank owned (REO) properties.  The residential average sale price was $206,000!

It seems that the general resort buying public is still a bit reluctant to jump into the second home/retirement market inspite of the perception of slow recovery in the economy and prices trending upwards in many markets in the country.  There are definitely many great “deals” out there with mortgage interest rates at historic lows and more inventory coming back on the market now that Spring has arrived.  What a great time to consider buying or investing.

Our Hondo Land Grant issue has not yet been resolved in the courts.  The title companies have challenged the validity of the deed filed by the Hondo Grant heirs in the fall and the federal court is questioning the validity of the damage to the title companies cited in their suit.  Meanwhile, a cloud on the title of the various landowners in the Hondo Grant area (around 20,000) still exists and affects their ability to sell, refinance, acquire funds to build etc., but the title companies in most instances are insuring over this cloud where properties have previous policies of title insurance.   This is a complex issue requiring further and extensive explanation–but the above is a basic summary and update.

As we approach the Spring and Summer seasons, we remain optimistic that the real estate market will continue to improve and grow considering the progress made in the first quarter. Coldwell Banker experienced a 20% improvement in business and was #1 for sales in our market!

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!

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!

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.

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.

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.

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.

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.

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!