Should I buy? Should I Sell? Navigating the Santa Fe housing market

Just wanted to share some interesting information as the rates fluctuate and the housing market normalizes.

Some interesting factors to take into consideration: There has been an increase in inventory of 10-12%. This also aligns with the days on market. Which is what we would expect to see with the rise of interest rates. The days on market have also increased over 100%. These are averaging around 40 days. So take that into consideration, it’s more of what we would see in a normal market. We have also seen increasing prices of 15%. So this tells us there’s an opportunity for sellers and buyers to potentially capitalize.

There are always micromarkets within the market, some areas yield higher prices and still get multiple offers, while other neighborhoods are normalizing. We are not seeing major jumps in some of these price points. What does that mean for you as a buyer? Well, it could mean a lot of things, the main question to ask yourself is if you can still qualify for a house. The only way to check on this is by having a mortgage professional evaluate your financials for a #preapproval.

We have had clients solidify buydown points, and other different types of loans around 4%, there is also the opportunity to refinance later, which is what some clients are doing as well. For the seller pricing a home is becoming more of a strategy to optimize the best return. Before there were some crazy prices thrown in the market and we weren’t getting a lot of pushback because of the of interest rates.

I had an interesting conversation with one of our clients. We were discussing rental properties and they told me that they were not comfortable purchasing now with the interest rates. I told them that they told me the exact same thing when the interest rates were lower because there was way more demand and there were multiple offer situation’s.

So when is it the right time to buy? I don’t know if there’s really an answer to that it’s all subjective. It’s when it’s comfortable for you and you can make those situation work successfully. If you’re looking for investment properties, you need to consider what your rate of return will be and that is all relevant to the property. Some properties will yield more than others, and those type of calculations can’t be done until you have solidified a idea of what your monthly mortgage payment will be.

If you’re renting a home right now and you’re thinking about purchasing, and the interest rate is stopping you think about this, 100% of your rent is interest… So investing in yourself, and purchasing a potentially appreciating asset can be extremely valuable!

Just wanted to share some thoughts with this update. Feel free to send me a direct message if you want more information. Thank you!