We are celebrating a typical spring here in Taos of warm and not so warm breezy days, chilly nights, and bright blue skies with puffy clouds. It's that time in the high desert when the garden is calling and you're not sure how to answer. It may have been awhile or very recently that you heard from us. We are writing to you today because we would like to include you in our mailings, which we promise will not be frequent, and to keep you updated on the Taos real estate market.
The business of real estate continues to move in fits and starts here in Taos. While we are tracking some national trends of increased activity, and 2012 saw a significant 32% improvement in total dollar volume over 2011 to $95M, the average and median prices continued to decline slightly. Also, 2012 was lifted by activity late in the fourth quarter. The first quarter of 2013 was off to a good start too, it slowed again in February and March, before showing signs of recovery in April and May. Year to date, the total sales volume has increase 18% over 2012 to $31.2M, and we are finally seeing average sale prices increasing for the first time in years! The Taos County MLS tracked 117 transactions (excluding Angel Fire & Red River area) through May 15th and saw the average selling prices climb to 267K, a 12% increase over 2012 average pricing for the same period.
What it means in simpler terms is that things are starting to get better. Prices remain +/-20% off their highs of 2006/07 but have now stabilized. There hasn't been much building since 2008 and as we move into summer demand could push pricing up a bit unless inventory increases. In Taos inventory comes from spec builders (who build 1-2 homes at a time) or existing homeowners. Financing rates remain historically low for now, and could further fuel demand from Buyers. Activity is busiest below 200k, with the middle of the market ($4-600k) and the upper ($1m+) market still soft.
As we continue to show signs of stability again, and head towards improvement, there remains many opportunities for Buyer's particularly in the mid to upper range. If you are a Seller, the current low inventory numbers could work to your benefit. It may be a good time to test the market if you have been waiting.
Below are a couple of current listings that are well priced and ready for the next owners. Have a look and if you have any further thoughts, comments, questions, or curse words.. give us a call. We can work together to create a plan for you.
John & Lisa Cancro