The Latest Trends in the Taos Real Estate Market

Like many areas across the rest of the country, the Taos real estate market has experienced some notable changes over the past several years. As interest in buying and selling the town’s historic adobe buildings continues to rise, more real estate transactions than ever before are set to happen. However, before making any offers, it is essential to learn about area market conditions to make the best choices for you and your family. Whether planning to buy or sell your home, take time to explore the latest trends in the Taos real estate market.

Since 2020, home listing prices across the country have skyrocketed. The same is true of Taos real estate. Over the past year, residential property values in the area have increased by an estimated 13.6 percent. This trend continues to persist and will likely result in continued home value rises through the end of the year. For sellers, this is great news; buyers, however, will need to prepare for increased down payments and monthly mortgage payments, especially given the market’s high mortgage rates.

 

So, when are home prices projected to plateau — or possibly begin to decrease? Compared to the past year, the market is undoubtedly showing signs of calming down. But this claim is based on a real estate market that was out of control for months on end. Any cooling off that is currently taking place is serving to bring buying and selling back only to a more “normal” state. While there have been guesses, no one officially knows whether prices will either remain the same or when they may take a dip. Of note, though, is that most reliable projections show home prices as far more likely to plateau rather than decrease.

With the changes to real estate markets nationwide over the past several years, many people have been priced out of buying homes. Dozens of cities across the country now see median home values ranging from the high six-figures to even over $1 million. These include San Jose, Boston, Seattle, and Ventura. Even areas once considered affordable by real estate agents and buyers alike now have sky-high sale prices.

 

There's great news for those looking to purchase a home in Taos, though. Residential properties in the area have a median price of $599,000 as of July 2022 and there are plenty of excellent deals to be found around town. Taos stands as one of the few remaining locations where you can find a beautiful home with ample square footage and acreage for a fair price. Additionally, residents in Taos are treated to serene and private neighborhoods, awe-inspiring natural scenery, and a wealth of nearby conveniences.

Nationwide home inventory reached all-time lows over the last year. With such increased demand to buy homes, it was extremely challenging for potential buyers to find a new residence. As the real estate market has begun to shift back to more standard status, inventory has seen increases in tandem — both across the country and in Taos. Upon browsing what’s available in town, you’ll find a healthy inventory of homes spanning all sizes and styles. Individuals who’ve had their hearts set on purchasing an adobe-style home will discover more options than in recent years. And as this year goes on, more sellers will likely list their homes, further increasing the available home inventory in Taos.

Right now, mortgage interest rates are incredibly high. Whereas back in December 2020, interest rates plummeted to 2.68 percent, now, less than two years later, average rates have exceeded six percent. Long story short, it is incredibly expensive to borrow the money needed to buy a home right now.

 

So, this begs the question: What are the best ways to avoid paying more than you should on your home purchase? Ideally, all-cash offers are the way to go in today’s market. Not only do they help you stay mortgage-free and thus avoid massive monthly interest payments, but they also provide you with added negotiating leverage. Since it is, realistically, challenging to save hundreds upon thousands of dollars, an all-cash offer might not be practical for you at the moment. If that’s the case, work to save up the highest possible down payment you can afford. Doing so will significantly reduce your debt and help you avoid paying thousands extra in mortgage interest. If you do have to take out a mortgage, ensure that your credit score is in top shape. The higher your credit score, the lower your rates will be.

Over the past decade, the population of Taos has remained relatively steady. In 2018, there was a small yet noteworthy bump in the size of the population (going from 5,687 to 6,021 residents). Since then, the total number of people living in Taos has continued to hover near the 6,000 mark. This consistency is a positive trend for both home buyers and sellers.

After reviewing the latest Taos real estate trends — nationwide and locally — it is easy to see that much has happened and changed over the last two years. Due to continued economic shifts, it’s easy to deduce that the market will continue to adjust and fluctuate over the coming years.

 

As a result of these constant changes, taking on the home selling or buying process alone will prove to be incredibly challenging. To make the process easier, it’s important to have a reliable, knowledgeable, and experienced Taos realtor to help you navigate the current and forthcoming ups and downs. If you’re planning to sell or buy a home in Taos look no further than Jennifer Hoffmann with The Hoffmann Team. Ranked in the top one percent of Coldwell Banker realtors internationally, with $81+ million in sales, you can rely on her expertise. Contact the team to get started today.


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