It’s Trickle-Up for the Taos Real Estate Market

Posted by Jim Kimmons, Broker/Owner • May 21, 2009 • Printer-friendly

: Image by jimkimmons via Flickr

Recovery in Taos real estate isn't about the national trend. Taos real estate sales will rebound in a trickle-up way. And, it won't be quick I think.

I'll stick by my "Dow at 9500 means buyers will return" posts. However, who knows when the stock market can get there. What is more obvious, to me at least, at this point, is that there is already a bottom-up improvement in the Taos real estate market. But, it's just a shadow of previous good times.

Here's an article that poses a possible "bottom in the markets." Right now, homes at the low end of the Taos real estate pricing spectrum are moving. There is a watching audience, and when the price drops to the right level, they're being scooped up. Another one yesterday that I've been watching for a year, finally hit the magic number, and it's under contract. These tend to be in the low $200k range at this point.

So, there are two major opinions discussed by those wanting to buy, sell or broker real estate in Taos, NM.

We're in for another year, into 2010, without improvement in the Taos real estate market ... they're right.
We're seeing improvement right now that will continue ... they're right.

What we'll see, in my opinion, is an increase in number of sales, but not much of an increase in dollar volume. This will be brought about by an increase in pricing concessions mostly on the lower end. And, until the rest of the economy looks brighter to those who still have a little money to buy a vacation or retirement home, price concessions in the $400k up range (a big part of our market) will have to get pretty aggressive to lure a buyer.