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Taos New Mexico Real Estate Market Is Supported By Above-Average Prices

Author : Stephen Daniels

Located on the base of the beautiful Sangre de Cristo mountain range in northern New Mexico, Taos is among the most incredible areas in the southwestern United States. Well-known as a tucked-away artist enclave, there hasn't been as good a time as right 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 values remain far above the national average. Most importantly, it is a buyer's market, so you can find deals. It is important to keep in mind that it is a rather small town, so there's never an abundance of homes available on the market at any given time. This will act to keep values reasonably stable, even during a stagnant marketplace.

In general, most potential real-estate buyers are waiting in the wings. No one is quite sure if the market has bottomed out or if it will continue to fall. Buyers in Taos seem to be demanding better deals or simply biding their time. But for the month of October 2010 compared to 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 those sales has increased over 7 percent. However, Taos condos haven't been as successful; they are still down 36 percent for the year. But compare the average single-family home price of just over $319,000 through the first three quarters of 2010 to the national average of $200,000, and one can see that things aren't so bad in this city.

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

New construction of single-family homes and condos, meanwhile, is stalled. This is equally due to the fact that construction costs have not dropped and that the prices for existing homes have flat lined or decreased over the last few years. Since a new construction might end up being worth less than the cost of labor, land and materials, there is little financial incentive to build. A better option is undeveloped land; not only are there no maintenance costs and few taxes (if any), land is bound 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 looking to invest in a second home. They are a diverse lot, coming from nearby states like Texas and Arizona, both coasts, and even the Midwest. Since jet-setters aren't as drawn to Taos as they are to Aspen or Vail, few of the buyers are foreigners. Some estimate that nearly 65 percent of homeowners either rent their property out to vacationers or have a rental agency take care of it. That's a great way to recoup 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 many opportunities to become self-employed. It may put off retirement for a while longer, but it also brings one closer to the goal of settling down in this peaceful community known for its great ski slopes, stunning natural surroundings and art.

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

Author's Resource Box

If you are interested in Taos real estate for sale, internet marketing strategist Stephen Daniels recommends Page Sullivan Real Estate Group. Their real estate agents can help you find the best property for your needs and budget, whether youre looking for a permanent residence or a vacation home.

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Tags:   Taos New Mexico real estate, Taos real estate for sale, Taos condos

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Submitted : 2010-12-30    Word Count : 1    Times Viewed: 325