The Stock Market and Taos Real Estate

Posted by Jim Kimmons, Broker/Owner • December 5, 2008 • Printer-friendly

I've written before about the special characteristics of vacation and resort home markets, and how the trends influence Taos real estate. In speaking to clients and buyer prospects, it is clear that those who can

Stock Market Rise

afford second and vacation homes in the Taos real estate market are usually invested in stocks, bonds or REIT's.

When the market blows off 30% to 40% of portfolio value, we notice it in the Taos real estate market. Discretionary spending on a ski condo or getaway home is placed on hold. I'm going out on a limb, but I believe that any Taos real estate market turnaround will be more related to the stock market than mortgage relief or other national news. When the DOW maintains steady closes above 9500, I believe we'll see the return of buying in this market. If you're in the wings trying to find the bottom for Taos real estate, you might want to watch the DOW for clues.