Sierra del Norte Area

1st QUARTER 2009 SANTA FE CITY SINGLE FAMILY AND CONDO MEDIAN PRICES SHOW MODEST GAIN WHILE SALES DROP IN BOTH THE CITY AND COUNTY

(Santa Fe, NM - April 8, 2009) The overall median price of a home in the City of Santa Fe showed a modest gain to $308,000 in the 1st Quarter of 2009 compared to similar 2008 home sales data. Sales in the City for the 1st Quarter of 2009 decreased from 138 sold during the 1st Quarter in 2008 to 95 this Quarter - a 31% decrease. Condo sales in the City slowed from 61 in the 1st Quarter of 2008 to 27 in the current 1st Quarter with values again increasing a modest 8%.

In the County of Santa Fe, price reductions occurred in all but one market area resulting in a median price of $440,000 in the 1st Quarter of 2009 compared to $480 in the 1st Quarter of 2008. County home sales also remained slow in the most recent 1st Quarter at 82 compared to 103 in the 1st Quarter of 2008 - only a 20% decrease.

“We are beginning to see a very modest increase in home values compared to last year during the same period for City homes and condos but sales remained slow,” stated Mary Schroeder, 2009 President of the Santa Fe Association of REALTORS®. “Sales and values in the County appear to be stabilizing with sales off a smaller percentage and values by only 8%. Our March data was the strongest and more on track with 2008 home sales data. I think we’re beginning to see some positive momentum in home sales.”

“It is a fabulous time to buy a home in Santa Fe. There are real bargains in every area of the City and County with a great selection of homes to choose from,” said Ms. Schroeder. She added, “We believe the newly passed First Time Home Buyer Tax Credit of $8,000 and current low interest loans will certainly help to get buyers back into the housing market.”

The First Time Home Buyer Tax Credit is one of ten key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on February 17, 2009. The bill provides for an $8,000 tax credit that will be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. The credit can be claimed on a tax return to reduce the purchaser’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser. You should consult with a tax professional to determine how best to take advantage of the Tax Credit relative to your personal situation.

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. A complete chart of the median sales prices for the 1st Quarter of 2009 and accompanying graphs can be found at the Santa Fe Association of REALTORS® website.

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.

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.

Believe it or not, the IRS site is a great resource.

I’ve been making a list of questions to ask our CPA, Bill, about real estate transactions that have occurred in our lives over the past year. Out of curiosity, I checked the IRS site, and BINGO. I found all the answers, plus more things I hadn’t thought about—increases for dollar limitations on benefits and contributions, IRA contribution and deduction limits, etc.

Knowing it would take Bill a few days to return my call during the tax season, I’ve bookmarked the site and think you may want to do the same. Here’s a link regarding Seven Things You Should Know When Selling Your Home. It’s pretty basic, but will hopefully generate more questions and answers while you gather your paperwork and head to your accountant’s office this year.

We have to be realistic about what a home is actually worth in today’s real estate market, what a buyer will pay for it, the value an appraiser will attribute to it, and the value an underwriter will accept on behalf of the lending bank. Buyers are looking for deals; many are finding them. Banks are releasing foreclosed homes onto the active market from their inventory on a regular basis and more are coming. Conventional sales do have to compete with these sales regarding price, and appraisers are using these sales to attribute value to your home sale.

Appraisers are working with sets of guidelines issued to them by the lenders they represent. Prices are changing so rapidly they usually will not accept comparable sales older than 2 months when determining value on your home. If you priced your home 4, 5 or 6 months ago and have not aggressively reduced your price in tune with the market, then there is a possibility that you could have an appraisal problem if you do receive an offer. Perhaps you should consider having your Realtor prepare a current CMA or have your home appraised by a certified appraiser.

So, what is it going to take to sell your Santa Fe, NM home if you have to sell?

It’s going to take a comprehensive online marketing package designed to place your beautiful home in front of buyers’ eyes where they are shopping - on the search engines, by a seasoned Realtor who has the sites and the ability to achieve that on your behalf. It’s going to take a marketing expert to weave the right mix to place your home front and center where it needs to be. There is more to this than meets the eye. It takes expertise, knowledge of SEO (search engine optimization) and it takes several powerful sites.

Over 25% of all home buyers FIRST saw the home they purchased on the internet. If your Santa Fe home is not heavily marketed on the internet, you are missing thousands of potential buyers. I believe in marketing your home for all that it is worth!

Visit our Santa Fe Exclusives web site for more helpful information and updates.

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.

Luxury Homes Sold Feb 2009

Area*     Type    List $     Sold $    SP% LP   SP$/SF  Days   Age  Acre

3               SF       595,000      530,000       89%       $175            237       1975    .47

3               SF       630,000      555,000       88%       $185            125         1966   1.5

3               SF       675,000      622,000       92%       $325                             New

25             SF       599,000      556,000       92%       $210            100       2003   2.5

1               SF       635,000      605,000       95%       $271              69        1984    1

1               SF       1,050,000   920,000      87%       $246            115       2006   0.5

3               SF       895,000      822,913        91%       $242            271                        2.2

25             SF      699,000       699,000     100%       $220             77        2006  2.5

25             SF     795,000        730,000       91%       $202            476        1990   2.5

25             SF      1,150,000    1,005,000    87%       $290              67        New    1.5

26             SF      1,185,000    1,080,000    91%       $308              99        2007   12

1               SF      749,636       749,636        100%                                             New

*Area 1: Santa Fe City Limits Northeast - (Santa Fe River (East Alameda Street) on the South, St. Francis Dr. on the West, City Limits North and East

Area 3: Santa Fe City Limits Southeast - Santa Fe River on the North to I-25 on the South, St. Francis Dr on the West to City Limits on the East

Area 25: Northwest of City Limits - (including but not limited to); Tano Road, Casas de San Juan, Sangre de Cristo Estates, Aldea de Santa Fe, and all subdivisions of Camino La Tierra

Area 26: Southeast of City City Limits - (including but not limited to); Cloudstone, La Vista, Coyote Mountain Rd, Double Arrow Road and east, La Barbaria, and Overlook

Note: Numbers have been provided by the Santa Fe Association of Realtors Multiple Listing Service. There are approximately 25 areas in the by the Multiple Listing Service. The above report covers only homes sold/closed in excess of $500,000.

All information herein has not been verified and is not guaranteed.

To view available luxury homes/condos/townhomes in Santa Fe, click here.

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.

If you’re thinking of selling your Santa Fe home, but don’t need to make a change right away, don’t forget to fully protect your investment. It’s still surely one of your greatest assets. By ‘protecting your investment’, I mean don’t wait until there’s a problem to correct it.  Damage caused by neglect will cost you far more in the long run.

You may also want to get creative and consider a minimal remodel to customize your home so that it suits your lifestyle and makes living in a smaller space a little less painful. According to many, frugal is the new fashion. Following is great advice about which remodeling projects still make sense. Visit This Old House for ideas on the best new products for easy upgrades.

Jim Gordon

Washington Post

2/28/2009

WASHINGTON - Frugal is fashionable when it comes to remodeling, according to William Millholland, executive vice president of Case Design/Remodeling. The effects of the economic downturn have trickled down to the Bethesda, MD-based home improvement company, where business has slowed and 20 employees have been laid off, leaving a staff of 275. New projects are coming from homeowners who are staying put and taking the opportunity to make their homes more comfortable.

Case, which was founded in 1961, also owns Case Handyman Services, a franchise operation with 39 locations nationwide. Millholland says the company is reacting by changing the way it does business.

“Remodelers traditionally suffer during economic downturns, but not as much as home builders or car dealers,” he says. “People are trying to stretch a dollar, and they are not embarrassed about spending less. They almost celebrate it. as long as we are proud of our work and its quality, this is OK for us, too.”

We spoke with Millholland at Case headquarters about the new remodeling reality.

Question: What changes have you seen in your business in the past six months?

Answer: We have seen a fairly dramatic decrease in the average project size. We still do kitchens and baths but are doing them less expensively. There has been a significant drop in what people want to invest or are able to invest in their homes. People were accustomed to ever-increasing home values and were able to pull money out in home-equity loans. Now, these are harder to get. Clients are slowing down and taking longer to make decisions. People are buying their own kitchen appliances. In some cases, they are doing their own painting. They are stretching the budget as much as they can.

Question: How has the Handyman division been affected?

Answer: That business is stable. Homes still need to be maintained. We are doing $500 to $1,500 projects, things like fixing electrical problems, plumbing, caulking, winterizing and replacing gutters after ice storms. We install grab bars in bathrooms a lot and put in dog and cat doors.

Question: When will this all get better?

Answer: We used to pride ourselves on the ability to predict the future. The world has turned upside down, and our ability to project where we will be six months to a year from now isn’t there. There are no recognizable signs that it’s hit the bottom. When you are faced with this, you try to get creative and do more small-scale things: universal design, energy-saving improvements and sustainable, green design.

Question: What are the most requested projects?

Answer: The kitchen is still number one, whether it’s adding a new one or just a cosmetic cleanup. Bathrooms are a close (second).

Question: What projects, if put off,  could actually damage your house?

Answer: You can put off a new kitchen, but loose bricks or stone on your stoop or water infiltrating the basement or attic is dangerous. Water issues not only damage the house but can develop into mold problems. You should not put off electrical issues, such as bare wires and overloaded panels. Address roofing issues, gutters and downspouts, and have your furnace cleaned and inspected annually. The majority of homeowners don’t spend until there is a problem.

Question: Are many homeowners knowledgeable enough to do maintenance themselves?

Answer: Every generation is less and less into DIY. Compare what your grandparents knew how to do, to your parents and then you. and what do your kids know? I can’t imagine my daughter painting a room. Every generation, people do less. Remember when people used to change their own oil and tune up their own cars?

DIY