Taos New Mexico Real Estate Shows Promise For Buyers

Located on the base of the beautiful Sangre de Cristo mountain range in northern New Mexico, Taos is among the most beautiful places in the southwestern United States. Well-known as a tucked-away artist enclave, there has not been as good a time as now to get into the Taos New Mexico real estate market. Although the market there is still a bit stagnant, average single-family home values remain far above the national average. More importantly, it's a buyer's market, so you can find deals to be had. It is important to keep in mind that this is a relatively 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 in a stagnant market.

Generally, most potential real-estate buyers are waiting in the wings. Nobody is quite positive that the market has bottomed out or if it will continue to fall. Buyers in Taos appear to be demanding better deals or just 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. Additionally, year-to-date home sales are up over 8 percent, while the dollar volume for those sales has increased over 7 percent. Taos condos haven't fared as well, though; these are still down 36 percent for the year. But compare the typical single-family home cost 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 of this points to the fact that the real estate market in Taos is improving, at least with regard to single-family homes. Even though the town has experienced foreclosures, the speculative practice of flipping properties never really affected this town, 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 certainly equally because that construction costs have not dropped and that the prices for existing homes have flat lined or decreased over the past few years. Since a new construction might possibly be worth less than the cost of labor, land and materials, there is little financial incentive to construct. A better option is undeveloped land; not only are there no maintenance costs and few taxes (if any), land is bound to increase 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 vacation 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 entice 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 recoup some of the initial investment cost. Another investment choice is to go into business. From quaint bed-and-breakfasts, restaurants, art galleries as well as other shops, there are many opportunities to become self-employed. It may put off retirement for a little bit longer, but it also brings one closer to the goal of settling down within this peaceful community known for its great ski slopes, beautiful natural surroundings and art.

It's still tough to secure financing for real estate, especially for second-home buyers and those taking a look at condo properties. Interest is down, and many are waiting for prices to drop further. Taos real estate for sale might 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.

Reproduction permitted only when all active hyperlinks are included. 2010 All rights reserved.

More Information:

If you are seeking 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 you're looking for a long-term residence or a vacation home.