Tag Archives: Santa Fe NM Living

Home prices finally returning to normal by CNN Wire, 03/05/13, Santa Fe expected to be big gainer and rise 8.1% by year end

Santa Fe photo old doorThis article is syndicated from abc15.com. To read the original article, click here.

CNN Wire reports:  “After years of wild swings, the U.S. housing market is slowly returning to normal.

The latest forecast from Fiserv Case-Shiller predicts home prices will increase by an average of 3.3% annually over the five years ending September, 2017.

“2012 was the first year since 1997 that the housing market has resembled something [close to] normal,” said David Stiff, Fiserv’s chief economist. “For the past 15 years, home price changes and sales volumes have either been boosted by a bubble mentality or crushed by crash psychology.”

From 1998 until the housing bubble peaked in 2006, home prices grew by 5% or more a year. But once the bubble burst, home prices plunged, falling 30.5% through the end of September 2012.

It wasn’t until late 2011 that markets started to stabilize, according to Stiff. Between September 2011 and September 2012, average U.S. home prices rose 3.6%. By then, 62% of the 384 metro areas Fiserv tracks reported rising home prices, up from just 12.5% of all markets during the same period a year earlier.

Many of the metro areas hit hardest by the housing bust recorded the biggest price gains during those 12 months. In Phoenix, for example, prices climbed back by nearly 21%; prices in Detroit rose almost 16%; and homes in San Jose, Calif., gained 12.5%.

Values continued to decline on Long Island, N.Y., however, where prices fell 8.1% and where Stiff said the turnaround in median income lagged the rest of the nation by about a year. Brunswick, Ga., also saw declines, down 7.1%, as did Valdosta, Ga, off 6.9%. Both areas saw jumps in foreclosures.

By the end of this year, Fiserv predicts that home prices will be heading higher in almost every metro area it tracks. Medford, Ore., is expected to gain 9.7% in the 12 months through September, the highest of any city. Other big gainers are expected to be Santa Fe, N.M., up 8.1%, Billings, Mont., 5.5% and Syracuse, N.Y., 5%.

Fiserv expects Miami home prices to sustain a 10.7% loss over the same period, the largest drop of any market. Stiff said a steady stream of foreclosures will keep prices soft in the area during that time.

While Stiff said home price gains will be similar to those experienced back in 1997, he noted the similarities stopped there. Currently, millions of homes are either in foreclosure or on the verge of it.

Otherwise, there are many positive trends in today’s market, he said. Prices are extremely affordable and mortgage rates are at or near historic lows. Overall, Fiserv Case-Shiller expects stronger demand for housing, and the sector should, once again, have a positive impact on the economy.”

Green Chile Stew

GREEN CHILE STEW

Serves 8.

Note: You can substitute canned green chile peppers for the roasted. From the Santa Fe School of Cooking.

  • • 1 1/2 lb. beef stew meat, pork or chicken, cut in 1/2 -in. pieces
  • • 1/4 c. oil
  • • 2 onions, diced
  • • 4 c. chicken or beef stock
  • • 2 tsp. salt
  • • 4 potatoes, cubed
  • • 1 red bell pepper, diced
  • • 2 garlic cloves, minced
  • • 3 c. chopped roasted green chiles
  • • 2 tbsp. cilantro, or more to taste

Directions

Brown meat in oil in large saucepan. Add onions and continue to cook until onions are brown on edges. Add stock and salt; bring to boil. Add potatoes and simmer 1 to 2 hours.

Add bell peppers and garlic. Cook for another 30 minutes. Add green chile and cilantro and cook another 15 to 20 minutes.

Variations: Add any or all, to taste: posole, pinto beans, corn, tomatoes, chipotles en adobo and crushed coriander seed.

SANTA FE HOME MARKET SHOWS SIGNS OF STABILIZATION

By:  Bruce Krasnow | The New Mexican
Posted: Wednesday, January 13, 2010
Article syndicated from The New Mexican, click here to view the original article.
The best news Santa Fe Realtors have about 2009 is that it’s over.

The fourth-quarter median price for single-family homes sold in the city and county declined 9 percent to $335,000. But buoyed by a federal tax credit, the number of sales increased from a year ago by 16 percent to 274 in October, November and December. Still, the sales were less than half what they were in 2005, the decade peak.

In addition, the number of housing starts in the city of Santa Fe hit a 40-year low with 180 permits in 2009. Reed Liming, a planner with the city, said one has to go back to 1969 before finding new home construction starts at that level.

The number of agents who renewed their membership in the Santa Fe Association of Realtors declined 15 percent to 795 as of this month, said Lois Sury, the new association president, and the group has trimmed its budget to adjust. The nation has gone through an historic economic downturn — “one I’d rather read about in history books than live through again,” she said.

At the quarterly breakfast meeting Wednesday where the statistics were released, Sury said the housing market in Santa Fe has adjusted. The final sales price of a home was at 93 percent of the listing at the end of 2009, up from 80 percent a year ago — and that shows sellers have adjusted their expectations, she said.

“Affordability continues to improve, with more sales at the lower end of the market affecting the overall median price of homes,” Sury said.

Jane Trusty, an appraiser at the breakfast, called the first half of 2009 difficult, and with sluggish sales it was often hard to find comparable homes for valuation.

“We’re breathing quite a sigh of relief,” Trusty said. “What we found in the last two quarters is that things have stabilized quite a bit.”

The first half of 2009 saw stability in median sales prices — but agents say many homes were not being sold because sellers were not prepared for lower offers.

That was not the case in the third quarter, in which the median price of houses sold declined 20 percent. The just-ended quarter saw the median sales price in the unincorporated area drop 18 percent to $350,000 for single-family homes. Prices of sold homes in the city of Santa Fe fell 6 percent to $329,500. The median price in the city reached $470,000 at the end of 2005.

“Prices have reset,” Sury said.

Many sales under $500,000 are a result of the federal tax credit that was passed as part of the economic stimulus plan. The credit is now open to existing homeowners — but buyers must be under contract by April 30 to receive the money, up to $8,000 for new buyers and $6,500 for repeat buyers.

And it’s not just for move-up buyers. Sury is seeing longtime homeowners who want to downsize take advantage of the program to purchase something smaller, she said.

“It’s your tax money,” she said. “You might as well use it.”

Gary Miller, a mortgage specialist with Century Bank, said there is an upward trend in mortgage interest rates from Wednesday’s average of 5.2 percent on a 30-year fixed rate loan. That means the first quarter of 2010 brings a convergence of low prices, low borrowing costs and the tax credit. He tells potential buyers that it won’t last.

“It’s important to take action now,” he said.

For more information on the tax credit, go to www.federalhousingtaxcredit.com.

By:  Bruce Krasnow | The New Mexican
Posted: Wednesday, January 13, 2010 -