Truth in Taos Real Estate – Know Who You’re Talking To

Posted by Jim Kimmons, Broker/Owner • October 30, 2008 • Printer-friendly

dollars Truth in Taos Real Estate Know Who Youre Talking To I'm a stickler for numbers, and you'll find a great deal of statistical data on this site. And, if you stop me on the street and ask me a question like "How is the market doing compared to last year for prices?" I'll likely give you my last recollection, but more likely want to run the numbers before I can answer. Numbers should be right, especially if someone could repeat them or make a decision based on what I've said. Not so for some in Taos real estate.

It's probably not malicious, but more listening to someone else who is giving out the wrong information. Or, it's the real estate party line to try and keep up appearances and not discourage a purchase or listing. However, while standing in a one hour+ line to get my Ranchos de Taos mail this morning (another story), I was just in front of a local broker who was conversing with the gentleman behind him. The question I wrote above came up. The answer was that "homes in Taos have appreciated 7% this year, and the bottom feeding is over."

I couldn't wait to get back and actually do what should be done before those kind of statements; run the statistics in the MLS. So, here I am with the numbers in hand:

In order to try and be "in the market" so to speak, I searched for homes with 3 bedrooms and two baths and under two acre lot sizes. That's a big part of the market.
I didn't set any other criteria, like price ranges.
For all of 2007, the average sale was $340,728, a 4% average discount to list price, and the median sale price was $344,000.
I ran Jan 1 this year through today, and the average sale was $317,221 at a 6% discount to list. Median price is $300,000.
It looks like the 7% was right on the money, just in the wrong direction!

Yes, you could choose another price range, or home size range, or any other possible grouping. However, a lot of our market is homes like those whose bedrooms, baths and lot sizes I chose. By limiting the report to a static 3 BR, 2 BA selection, I could make a better comparison to see the price trend.

When you're standing in line, hopefully not an hour, be careful who you ask about real estate. Or, at least get someone who is willing to run real numbers for you. Listening to what I heard might make you think that you better hurry, as bargains are disappearing fast ... or maybe that was the intent. I won't call it bottom feeding, but prices are still dropping here, and I think it's a great time to find a bargain. At least it is if you work with a broker who knows the market and will help you to identify true value.