Housing Market Trends in Santa Fe, NM
The real estate experts and media have continued to affect mortgage market trends in their sensitive sentiments concerning sharp declines in home values, and the entire housing sector. They tend to generalize the highs and lows for the whole nation, which is not the case, each area experiences the falls and rises In respect of the respective geographical location. A national home value average is meaningless to your area of interest. It may predict a different figure while at your area has another figure. What mostly matters in the value of a home is not the sales rate but the economy and the main attractions to the area.
An example is the California capital Sacramento with a population of about 37 million, an employment rate of around 5% that is very close to its 4.7% in 2006. Median income was $49,894 in 2004 compared to the current $575,000. The economy depends mainly on agriculture and industries like electronics, aerospace, oil, and tourism.
California is a known destination for tourists. It is the first nation that rakes in earnings from the travel of the local and foreign visitors. Tourism alone contributes 6.5% of the States gross product. California has 12 regions. The many attractions offered in California include recreational and amusement parks such as Disney World and Yosemite National Park among others. There are beaches, mountains, desert and a wine country to mention a few of them
The California real estate boomed with an all-time home average value high in the 2000s. This was because of the thriving tourism. Many people moved to California to acquire second homes and the inventory sold very well. Realtors had predicted a downshift from 2006. They predicted a 2% in home value and 7% decrease in home sales compared to 2006.
Vince Malta, the C.A.R president believed that buyer-seller expectations have slowed down the market. The sellers await the highest possible home value in 2006, while the buyers’ urgency declined due to the range of choice in the market. An Economist noted that the slowdown which started in 2005 was worsened by two disasters on the gulf coast as a result of decline in consumer confidence, rising raw material cost and FRI rate hikes which started in 2004. The economist argued that mortgage rates passed a threshold making homes unaffordable.
The association of realtors in California expects central valley San Diego and Riverside to realize a further decline in home sales and home value than in the rest of the state. This means sellers will hold onto their homes to speculate a higher price as opposed to the current low value coupled with the inflation. They hold for two years to see what may happen. This is the time for buyers to buy homes that they can reside in for the long run. You cannot predict what would happen to your home in 10 years since the real estate market is unpredictable. What we can say is that buyers have clear light at the moment than the sellers.
Let the buyers carry out their research online and if they are lucky to get a good home, they purchase and live in it or rent it as they speculate that the home appreciates. These trends especially apply to houses for sale in Santa Fe, NM.