Buyers

The Santa Fe, NM real estate market is the best I’ve seen in my 25+ years for buyers—whether you are looking to buy a home for your family, or as an investment. Here’s why:

The economic downturn is temporary. But you can be sure that when it begins to stabilize, the two BIG factors in purchasing a home: prices and interest rates, will increase.

Buying for investment is a little different than buying to live in. If you are investing, make sure you work with a professional Realtor who  knows the local market, and invests in real estate themselves. Then, take the emotion out of the purchase. Worry about the age of the roof, appliances, furnace, water heater, etc. as well as the type of construction to determine what kind of building maintenance would need to be done. Don’t worry about things such as how the the back yard looks from the window above the kitchen sink. Analyzing investment property is much different than for a full-time residence. It more or less boils down to your rate of return, as opposed to what similiar properties have sold for.

In the case of purchasing a home in Santa Fe, you should have your Realtor provide you with comparable sales that have recently sold so that you are aware of values and do not bid or purchase an overpriced home.

Tagged as: Santa Fe pending home sales

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Santa Fe NM Real Estate Transfer Tax Win

Baro Shalizi - President - Santa Fe Association of Realtors (SFAR)
I am pleased to report that the city proposed real estate transfer tax ballot initiative failed on a vote of 4,557 ballots (54.2%) cast against the tax and 3,845 ballots (45.8%) cast in favor of the tax. It was a tremendous victory for the Association which had taken a very public position against the proposal as well as the many Realtors and members of the business community who worked so hard to help educate the community on why the tax was so inequitable. We are thankful that voters agreed with our message that the proposal was unfair, targeted older homes, did not provide enough specifics on how the money would be used, was possibly illegal and would not address our long term housing needs. The Association is reaching out to the community to bring all the stakeholders together to advance affordable housing solutions that are both effective and fair. In the coming months, we will be working collaboratively with all stakeholders to help identify methods to increase housing affordability that will certainly include helping Santa Feans buy existing market rate affordable homes and encourage them to take advantage of the $8,000 First Time Homebuyer Tax Credit. Efforts are already underway to demonstrate that the housing community can work together to help stimulate our local housing economy. In a recent meeting with Mayor Coss, he agreed to participate in our local affordable housing outreach plans.

Tagged as: Santa Fe NM Real Estate, transfer tax

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NM Real Estate-Related Bills Passed by the Legislature

The following bills were passed by the Legislature and are on the Governor’s desk awaiting his approval or veto:

–HB 261: Disclosure of Property Taxes. The bill requires the seller or seller’s broker to obtain a written estimate of future property taxes from the County Assessor and that a buyer acknowledge receipt of the disclosure. The Realtors Association of New Mexico (RANM) insisted on amendments that required the County Assessor to provide the projected tax information, and on the addition of a provision that protects real estate brokers from liability.

–SB 342: Mortgage Loan Originator Act. This bill requires licensure of those engaged in the business of making residential home loans, but the original version did not exempt seller financing. Amendments offered by RANM were accepted in the bill and seller financing is now preserved in the version approved by the Legislature. The legislation was modeled after the Federal SAFE act, enacted by the U.S. Congress last year. At RANM’s request, the National Association of Realtors. NAR is now working to ensure that seller financing is exempt in federal legislation as well.

–HB47: Indian Subdivision Notification. HB 37 requires county commissioners to request opinions concerning a proposed subdivision from each Indian nation, tribe or pueblo that submits a written request for notification. RANM amendments accepted by the Legislature require a tribe to indicate how a cultural resource may be impacted by a subdivision, so that a subdivider may respond adequately to an adverse opinion. (the original wording by the author required only that the tribes indicate whether there was a negative impact.)

–HB 862: No Penalty for Mobile Home Payoffs. This bill prohibits lenders from applying a prepayment penalty on mobile home loans. Current law only prohibits prepayment penalties on a home loan.

NOTE: Only HB 37 has been signed into law by the Governor. The Governor has until April 10, 2009 to sign, veto, or pocket-veto the other measures.

To see  bills acted on by the Governor of New Mexico during the current legislative session, visit the NM Legislature site.

Tagged as: new mexico real estate legislation

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Santa Fe Voters Defeat City Proposed Transfer Tax

Excerpt from the Santa Fe Association of Realtors

Santa Fe voters rejected a proposed transfer tax Tuesday evening, with 54% voting against the tax to just 46% in favor. Working closely with NAR (National Association of Realtors) and RANM (Realtor’s Association of New Mexico), the Santa Fe Association of REALTORS ran an aggressive grassroots campaign against the tax that featured targeted direct mail, radio and face-to-face communications. We are thankful that voters agreed with our message that the proposal was unfair, targeted older homes, did not provide enough specifics on how the money would be used, and would not address our long term housing needs. In the coming months, we will be working to advance a variety of methods to increase housing affordability and stand ready to offer our leadership by working with all stakeholders.

Tagged as: Santa Fe housing, santa fe nm transfer tax

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6 Tips for Homebuyers Seeking a Mortgage

Here’s a warning for potential borrowers: Nervous lenders have tough new rules and are paperwork crazy.

“Borrowers are going to have to prove they are the borrower they say they are,” says Keith Gumbinger, vice president of HSH Associates, a mortgage-industry publisher in Pompton Plains, N.J.

Gumbinger says homebuyers should consider these things before they apply for a loan.

1. Down payments are critical. Borrowers should expect to put down at least 10 percent for a “conforming loan” – a mortgage that Fannie Mae and Freddie Mac will purchase.

2. Credit scores count. A 720 on the 850-point FICO rating scale will get a borrower access to the best rates. Rich Bira, branch manager of FCM Direct Lender in Chicago, says: “A score between 720 and 739 gets 0.125 percent added to the rate, a score between 700 and 719 gets 0.375 percent added to the rate, and a score between 680 and 699 gets 0.5 percent added to the rate.”

3. Consider VA and FHA. Borrowers without down payments or with less than stellar credit scores should consider these government-insured loans offered through the Federal Housing Administration of the Veterans Administration.

4. Unearth the records. Before applying, borrowers should organize tax, banking and other records that prove income, savings and debts. They should also expect to be patient about what may seem to be endless requests for information.

5. Get rid of debts. Limiting debts, including what borrowers expect to pay for the mortgage, to less than 43 percent of gross income is important.

Chicago Tribune, Mary Umberger

and…..6. Don’t go shopping for a new mortgage before you know exactly how much you can spend.

Tagged as: homebuyers, mortgage, santa fe nm

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4th Quarter 2008 Santa Fe City Overall Median Price Remains Steady at $350,000 While Sales Drop in Both the City and County

(Santa Fe, NM - January 14, 2009) The overall median price of a home in the City of Santa Fe held steady at $350,000 in the 4th Quarter of 2008 compared to similar 2007 home sales data. Sales in the City for the 4th Quarter 2008 decreased from 141 sold during the 4th Quarter in 2007 to 131 this Quarter - a 7% decrease. Condo sales in the City closed from 89 in the 4th Quarter of 2007 to 75 in the current 4th Quarter, but values also remained strong.

In the County of Santa Fe, price reductions occurred in all but one market area, resulting in a median price of $427,000 in the 4th Quarter of 2008 compared to $549,125 in the 4th Quarter of 2007. County home sales also remained sluggish in the most recent 4th Quarter at 106 compared to 132 in the 4th Quarter of 2007.

“Home values are remaining steady compared to last year during the same period for City homes and condos with sales off only modestly,” stated Lois Sury, 2009 President-Elect of the Santa Fe Association of REALTORS®, “However, the County is still experiencing slower sales and more price adjustments during this same period. The current national economic slowdown may be depressing sales in certain markets,” she added.

“Overall inventories are dropping as buyers are snapping up bargains as well as some buyers deciding to take homes off the market due to the economic uncertainty. Yet, inventories remain higher at the end of 2008 than reported at the end of 2007,” shared Ms. Sury.

A complete chart of the median sales prices for the 4th Quarter of 2008 and accompanying graphs are attached.

“One of the first keys to truly resolving the housing crisis - eliminating the repayment provision for the first time home buyer tax credit - is now in the hands of Congress,” she added. The National Association of REALTORS® is urging Congress to amend the current first time buyer tax credit by eliminating the repayment requirement to provide a more beneficial stimulus. In addition, the credit should be available for all purchases of a principal residence and not restricted solely to first-time homebuyers. It should also be extended through December 31, 2009.

If you are interested in purchasing a Santa Fe NM luxury home, condo or townhome, this winter is the time to make your purchase. It would be my pleasure to assist you. Visit my web site to view available luxury homes, or contact me directly at 888.300.5580.

The median sales price is determined from only those sales listed on the Santa Fe Association of REALTORS® Multiple Listing Service, which does not include every sale in the area but has been used historically to track trends in the home buying market.

Tagged as: nm market report, santa fe, santa fe nm market report, santa fe nm real estate market conditions 4th quarter 2008

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Dream Commute - Albuquerque to Santa Fe, NM

At last, we have a fast, safe track to and from Santa Fe/Albuquerque, NM via the New Mexico Railrunner

Trains from Albuquerque to Santa Fe began running during the Christmas holidays and they were packed! Need additional inspiration for a return trip to Santa Fe? Here are some great photos of scenes along the way, taken by winners of the New Mexico Rail Runner Express Photo Contest. Although it may be tempting to review your notes about all of the things you’re looking forward to experiencing while you’re in Santa Fe, as well as the home you plan to purchase, remember—-it’s a new year–you said you were going to relax—this is a chance to absorb a huge part of what we love about New Mexico—the outdoors. Look out the window and enjoy the ride. Aaahhh…

To learn more about how to get around on this beautiful beast, check out the NM Railrunner site for schedules, maps and news. Of significant importance is how to get from the Albuquerque airport to your Santa Fe hotel of choice. Although I’ve yet to try it, there are shuttles available from many locations, making it easy to settle in once you’re here.

Tagged as: nm, NM Railrunner, Railrunner to Santa Fe

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3rd QUARTER 2008 SANTA FE OVERALL MEDIAN PRICE INCREASES IN CITY WITH SALES STEADY AS SALES REMAIN SLUGGISH IN COUNTY

“There is a good news message in the 3rd Quarter housing statistics in that City sales have picked up and are now on track with 2007 sales for the same Quarter. Also, the median price has increased, clearly showing that many homes in Santa Fe are maintaining their value in this market, ” stated Baro Shalizi, 2008 President of the Santa Fe Association of REALTORS®. “At the same time, the County is showing some modest price reductions with properties generally holding value but fewer sales this Quarter, ” he added.

The overall median price of a home in the city of Santa Fe increased by 16% in the 3rd Quarter of 2008 compared to similar 2007 home sales data. On a bright note, sales in the City for the 3rd Quarter 2008 are on par with sales from the 3rd Quarter in 2007. While condo sales in the city and County combined remained at nearly the same level in the 3rd Quarter 2008 to the 3rd Quarter of 2007, prices were down by approximately 15%.

In the County of Santa Fe, price reductions occurred in all but one market area, resulting in a median price of $425,000 in the 3rd Quarter of 2008 compared to $450,000 in the 3rd Quarter of 2007.

A complete chart of the median sales prices for the 3rd Quarter of 2008 and accompanying graphs are attached.

Santa Fe, NM real estate is home to the southwest’s most incredible real estate investments. Set in central New Mexico, we enjoy moderate temperatures year round, sweet mountain and sunset views, and a relaxed atmosphere. With our purchase prices so reasonable and phenomenally low interest rates , is it any wonder snowbirds are flocking here?

If you are interested in purchasing a Santa Fe, NM luxury home, condo or townhome, this winter is the time to make your purchase. It would be my pleasure to assist you. Visit my web site to view available luxury homes, or contact me directly at 888.300.5580.

Tagged as: Santa Fe NM Real Estate Market Conditions

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Is This a Good Time To Buy a Home, and When Will the Market Bottom?

November 23, 2008

• How long will the turmoil in the housing markets last? This is the first time in our country’s history where home values have declined nationally without a corresponding large rise in unemployment. During the Great Depression, the unemployment rate was around 25% compared to approximately 6% today! Therefore the challenges being faced today are different than the challenges that were faced in the 1930s. Today, states like Michigan and Ohio have high rates of unemployment, and this is causing many people in those markets to default on their loans and go into foreclosure. Those markets will not likely rebound until the employment situation improves. On the other hand, states like Florida, Arizona and California have stronger employment. Home prices in those states have declined largely due to unsustainable speculation on the part of investors who over-extended themselves by betting that housing prices would always rise. Those markets have a glut of investor-owned properties that are going into foreclosure. The downward pressure of housing values due to foreclosures will likely last in most markets across the country throughout 2009, and in some markets, perhaps even through 2010. This does not necessarily mean that home prices will decline another 12-24 months. This simply means that home values are not likely to recover quickly due to the downward pressure on home prices.

New Mexico Expands While Other States Recess

Signs of recovery in pockets nationwide. On October 21, ABC News reported that 27 states are now in a recession. The story also stated seven states were expanding including New Mexico, Colorado, and Texas. As a matter of fact a slew of good news came out this Fall buried beneath the depressing news of the stock markets in October. Did you know that existing home sales and new home sales rose nationwide in June, July and August? Henry Paulson commented, “The biggest part of the housing decline will be over by the end of the year.” CNN Money reported that 55% of homes sold nationally this summer were affordable to families with household incomes of $61,500 and less. Even mortgage lenders have enjoyed rates in the 5’s and 6’s ( including Jumbo’s) with money to lend and a resurgence of 100% loan programs being offered with MFA, Hero, VA, USDA and minimum down Flex and FHA loans!

• Has a Bottom in the Housing Market been established? We may have hit the bottom this last June, believe it or not. As housing sales increased this summer, we saw problematic areas such as Southern California see its first increase since 2005- a whopping 16%, Phoenix up 17% Florida showing signs of leveling off. National homebuilders are back to buying land-Lennar Corp., K.B. Homes, Hovnanian and Meritage are shifting from defense to offense and scooping up land for future developments. Even Mad Money, Jim Cramer of CNBC in his Mad Money Blog states, “I am now telling you that between now and the next six months you have to buy a house!”. Barry Habib of the Mortgage Market Guide and frequent commentator for CNBC addressed a Las Vegas conference last week with his forecast of a stock market bottom in January as fourth quarter news are released with Christmas sales and a possible downturn in real estate in October testing the June bottom as we saw down payment money freeze up when the stocks tumble in October. Habib continued with his assessment that we may see a 7800/ 7400 Dow as market lows are tested. Most important, Habib stated historically the real estate market usually bottoms six months before the stock markets. If this theory holds true then a forecasted January stock market low could signal last June’s real estate low or re-test its lows.

• Is this a good time to buy a home? This is definitely a buyer’s market! Your negotiating power in this market is greater than at any point in the last several years. If you are interested in buying a home for the long-term, this is a great time to do so. First Time Home Buyers- 2009 should be a banner year for you to buy homes and you will need to act quickly. Not only does the market afford great opportunity now, you also have till June to take advantage of the $7500 Tax Credit approved by Congress. Investment Property buyers-2009 is the time to enhance your wealth. Foreclosures and reduced priced homes are availailable today for you to find properties to cash flow or benefit you tax wise with minimum down programs. Brian Buffini, real estate and mortgage trainer, recently said at a conference, “In every downturn cycle, there are EIGHT times more millionaires created! Now is the time to take advantage of today’s opportunities.”

John D. Rockefeller said, “The time to buy real estate is when blood is flowing in the streets.” There has been much panic selling in the real estate market where today’s deals will not likely be around in the future. Of course, there will always be deals available, but the type of deals available today are not going to last forever. Everyone talks about buying low and selling high and picking that magic target of market bottom. But a common sense approach to picking the market bottom has always been helpful. When you see consumer despondency and depression, then NOW is the time to buy! We definitely are experiencing this today and months ago.

• Interest rates for 2009 and when should I refi? Many times in 2008 we saw a recurring pattern when low 5’s are reached for the 30 year-fixed, then we immediately see rates move to the 6’s. This holds true today. 30-year fixed rates can be sought in the low 5’s with points and higher 5’s with no points. What a bargain! Jumbo’s in the high 5’s and low 6’s for 30-year fixed. What a deal! When we see real estate sales increase and economic news improve, then expect to see interest rates rise. As we see the pendulum swing back to a stronger economy one day you will see interest rates rise on the prospect of this news. Hence, now is the time to refi while you have these incredible lows.

• Stocks/ Mutual Funds/CD’s versus real estate? Last eight years real estate has afforded the best growth with positive returns while the Dow, Nasdaq and S&P500 showed negative returns. Buy real estate!

As long as your time frame is greater than two years, now is probably the best real estate buying opportunity in over two decades. The best thing to do is work with a team of professionals to help structure your home purchase transaction in ways where you could save the most money. Strategies for you to consider include seller-paid closing costs and discount points to lower your long-term rate even more. Maximize acquisition indebtedness to create tax benefits.

• Structuring down payments and even 100% loans to buy property you thought you could not buy? It is always advisable to consult with a Certified Mortgage Planning Specialist when navigating in today’s markets. As a CMPS professional, I am committed, qualified and equipped to help you evaluate your options!

Francis Phillips, CMPS, Senior Loan Officer,
First Metropolitan Mortgage
Manager, Sr. Loan Advisor
Office: 505-982-3400
ABQ: 505-350-1587
Las Cruces 575-202-8351
Fax: 505-820-0641

Francis Phillips has been recognized by 1st Metropolitan Mortgage as its Lender of the Year in 2006 and 2008 in top volume produced of 3000 agents nationwide. In 2007 he was awarded Branch Manager of the Year. Francis is a certified Real Estate Continuing Education instructor for the States of New Mexico and Texas. Allow Francis to offer a consultation to determine and structure which loan product is best for you as you consider a home purchase or refinancing along with strategies to increase your net worth.

Licensed in the State of New Mexico. Licensed by the California Department of Corporations under the Residential Mortgage Lending Act Empire Equity Group Inc. d/b/a 1st Metropolitan Mortgage is licensed by the Virginia State Corp. Commission (Lic. N. MB-1432).

Tagged as: buy a home in Santa Fe, Good Time to Buy A Home in Santa Fe

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