There’s no question that the blistering housing market of the past three years was hard on homebuyers. By October 2022, the average mortgage interest rate for a 30-year fixed was 7.24%, more than double the 3.22% level in January 2022.

According to Fannie Mae, the combination of high inflation, monetary policy tightening, and a slowing housing market is “likely to tip the economy into a modest recession in the first quarter of 2023.”

Many economic forecasters believe housing prices will decline, but that homebuyers shouldn’t fear buying during a declining market. Morgan Stanley predicts a 7% dip in home prices for 2023 that would return housing prices to where they were in January 2022 – 32% higher than prices were in March 2020 when the pandemic began. Economists with Goldman Sachs and Moody Analytics are predicting 5% to 10% declines in home prices, based on lack of homebuyer affordability, slowing housing sales, fewer mortgage applications and a looming recession, however mild.

BusinessInsider.com reports that the Federal Reserve’s overnight rate hikes have raised mortgage interest rates, pushing affordability to new lows, but that a recession could bring interest rates down again. That combined with softer homebuying demand due to inflation and sellers lowering their prices would make spring and summer 2023 great times to buy a home.

Click Here for the above photo info:  Valverde Commons Co-Housing Community: $1,100,000 MLS 109544

Click Here for: "What does a Cooling Market Mean?"

Click Here for: NAR Lawrence Yen "Today's Market is not like 15 years ago!"

Single Family Homes:  January to December marked another year of record breaking activity in the Taos market with historic average sales prices for Single Family homes @ $584,999 to the Sales Volume of the market increasing +107% from pre-Covid (2019) comparables.

If your home was worth $400,000 in 2019, the +46% increase in average sales price in 2022, it may have sold for $584,000.  The popular price range has been $400,000 - $600,000 with heavy increased units in the higher ranges.

Activity has slowed abit down with Active Listing units down since Q3 by -26% and Pending units down since Q3 -114%.  

Condos: Covid has pushed the units sold and the average sales price up just like single family homes.  Average sales price is $398,215 with 25% of the units selling being in Taos Ski Valley, which saw a slopeside condo sell for $1,937,000.

Earthships:  7 sold this year, averaging $408,250.  Earthships have come a long way from Mike Reynolds of the late 60's.  They have class, are comfortable and still maintain lower utility costs.

 

Click Here:  Total Market Synopsis for 2022 including all charts.

It's been quite the ride these past few years with buyers taking advantage of lower interest rates and a robust stock market.  With historic activity, the average sales price of a luxury home above $1M was $1,476,000 with the top sale @ $2,800,000.  There were 33 sales above $1M.  For the Taos real estate market, these figures are monumental.

Currently, we are seeing a change in the luxury market with slower activity starting the new year.  With the above outlook, spring always rejuvenates the sales market and with this year's outlook, maybe some lower prices. 

Click Here: Des Montes Enchanting Lifestyle Awaits $1,800,000. MLS 109202

LAND: Building Sites, less than 5 acres:The Average Price Sold  is Up to $107,303 as well as Units Sold.  Both categories have seen a steady climb in recent years but have not reached the height of the market activity in the early 2000's.

Larger parcels of land are selling, too, giving extra space and views for that dream home to be built.

Total Land sales are alive and well with the pre Covid (2019) Units Sold UP +65%.

COMMERCIAL:  With many transactions not reported in the MLS, we still find a busy market with small businesses closing as well as two historic lodges:  San Geronimo Lodge and the Hacienda del Sol B&B.

The TOTAL MARKET:  Units Sold are UP but the Sales Volume has reached an historic high these past 2 years comparing to Pre-covid (2019), the volume has increased +107%.

BHHS Taos Real Estate remains #1 in the real estate company in the Taos MLS.

Click Here for above photo info:  Taos Tennis @ Quail Ridge $1,900,000 MLS 107967

January:

• New Year's Day Celebration Dance at the Taos Pueblo  www.taospueblo.com
• Winter Writers Series  www.somostaos.org
• Winter Wine Festival  www.taoswinterwinefest.com                                      

February:

• Winter Writers Series  www.somostaos.org
• President's Day Weekend on the slopes
• Taos Wedding Expo 

March:

• TSV Freeride Championships www.skitaos.com
• Ridge-a-thon Fundraiser at Taos Ski Valley  www.skitaos.com

April:

• Annual Taos Shortz Film Fest   www.taosshortz.com
• Annual Home & Garden Expo  www.taoschamber.com
• Poetry Month at SOMOS   www.somostaos.org

 

Click Here for article on Julian Robles (above painting by Julian Robles, Taos)

The Amaryllis: A show piece of many colors, marks the oncoming of the Holidays.  Not only is it fun to watch it grow so fast to such a beauty, but you can care for it during the year for more special blooms next year.  

#1.  Fertilizer and water after it stops blooming for 2 months. #2.  Stop.  #3.  Place outside in the summer in partial sun.  It will enjoy the fresh air and sunshine.  Of course, water if your natural rain doesn't do enough.  #4.  In the fall, bring back inside.  Cut back, and let it dry out for a dormant period for a month.  #5.  Water. 

Of course, it will enjoy the 12 /12 hour light.  Relish the show!  You then will have bragging rights.