Posts Tagged ‘Taos New Mexico real estate’

Taos New Mexico Real Estate Shows Promise for Buyers

Tuesday, May 31st, 2011

Located on the base of the beautiful Sangre de Cristo mountain range in northern New Mexico, Taos is one of the most incredible locations in the southwestern United States. Well-known as a tucked-away artist enclave, there has not been as good a time as now to find yourself in the Taos New Mexico real estate market. Although the market there is still a bit stagnant, typical single-family home prices are still far above the national average. Moreover, it is a buyer’s market, so you will find deals to be had. It is important to also remember that this is a relatively small town, so there is never an abundance of homes available on the market at any given time. This will act to keep values reasonably stable, even in a stagnant market.

On the whole, most potential real-estate buyers are waiting in the wings. No one is really sure if the market has bottomed out or if it will continue to fall. Buyers in Taos appear to be asking for better deals or just biding their time. But for the month of October 2010 when compared with October 2009, both the number of sales and dollar figures were up 27 percent for single-family homes. Moreover, year-to-date home sales are up over 8 percent, while the dollar volume for all those sales has increased over 7 percent. Taos condos haven’t fared as well, though; they are still down 36 percent for this year. But compare the typical single-family home price of approximately $319,000 through the first three quarters of 2010 to the national average of $200,000, anyone can see that things aren’t so bad in this city.

All this points to the fact that the real estate market in Taos is improving, at least for single-family dwellings. Even though the town has experienced foreclosures, the speculative practice of flipping properties never really impacted this town, so it didn’t crash like it did in other places. As they do today, people were mostly in the market for a vacation home they wanted to keep.

Brand new construction of single-family homes and condos, meanwhile, is stalled. This is equally due to the fact that building costs haven’t dropped and that the prices for existing homes have flat lined or decreased over the past few years. Since a new construction might prove to be worth less than the expense of labor, land and materials, there’s little financial incentive to develop. A better option is undeveloped land; not only are there no maintenance costs and few taxes (if any), land is likely to go up in value, especially in Taos.

There are few pure investment property buyers who look in this desirable mountain region. Most buyers are retirees or those contemplating investing in a second home. They are a diverse lot, coming from nearby states like Texas and Arizona, both coasts, and even the Midwest. Because Taos largely doesn’t appeal to the jet-setters like Aspen or Vail do, few buyers are foreigners. By some estimates, up to 65 percent of homeowners either rent their purchase to vacationers or hire a rental agency to make it happen. This is a good way to get back some of the initial investment cost. Another investment option is to go into business. From quaint bed-and-breakfasts, restaurants, art galleries and other shops, there are lots of opportunities to become self-employed. It might put off retirement for a little bit longer, but it also brings one closer to the goal of settling down within this peaceful community famous for its great ski slopes, stunning natural surroundings and art.

It’s still hard to secure financing for real estate, especially for second-home buyers and those considering condominiums. Interest is down, and many are expecting prices to drop further. Taos real estate for sale may continue to fall slightly, but it’s not likely to drop drastically. This, along with rock-bottom interest rates, makes it a good time to get into the market. Plus, with common actual prices more than 11 percent lower than asking prices for October 2010, it’s a good time to find a deal.

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