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Inside Chama Real Estate

Your Hip Pocket Guide to the Chama River Valley!

• Featured Article: The Truth about Today's National Real Estate Market
• Valley Market Update: Where We Stand in Today's Market
• Chama River Valley History Fact
• Associate Tip: Stage Your Home Quick Tip

In order for us, whether a seller or buyer of real estate or just a plain-jane consumer, to make appropriate decisions, we need to know the facts.  It is as important today as it was in years past to see a clear picture of our real estate market.

 

Facts vs. Fear: How did we get here?

 

Never underestimate the power of historical data. Amity Shales new book, The Forgotten Man, a New History of the Great Depression, focuses on economic realities and consequences of the Great Depression. The news media likes to compare today's recession to the Depression of the 30's.  (Yes, we are in a recession- this is not rocket science!)

 

 

A couple of points to remember rarely mentioned in the media: 

1. In the 1930's there were a number of restricted tariffs and policies in place that do not exist today.
2. The banks of the 1930's practiced Isolationism- operating in a vacuum, per se, where our banks today operate in a Global Economy (with some nudging!)
3. More than 1000 banks closed in 1930- three years before the FDIC was created.
   • Only 14 US banks have been taken over in 2008-no lost deposits either.
4. There are 76 million households in the US that own their home.
   • 24 million of these homes are free and clear.
5. There are 52 million homes with mortgages.
   • 97.2% of these are not in foreclosure.
   • 93.8% of these homes are current on their payments.

1. Over 20% of homeowners with a mortgage owe more than their home is worth.
2. 40% of all foreclosures are non-owner occupied. This means rental property, second homes, vacation homes and speculation.  Of this 40%, 10-15% is Speculation only.
3. In 1999, the US passed a series of laws that greatly expanded homeownership.

1. No money down loans
2. Nothing value loans
3. Live beyond means by taking money out of a home with an easy refinance
4. Continue to refinance based on the increase of  'market equity' of the home

1. In the 1970's the average number of homes re-sold per year was 3 Million with the highest number during that time being 3.9 Million transactions.
2. In the 1980's the average number of homes re-sold per year was 3.3 Million with the highest number during that time being 4 Million transactions.
3. In the 1990's the average number of homes re-sold per year was 3.9 Million with the highest number during that time being 4.9 Million transactions. *This was during the dot.com boom
4. In the 2000's the average number of homes re-sold was 5.6 Million with the highest number during that time being 7.1 Million transactions (2005). 40% of all these sales were non-owner occupied!

• Staging your Unique Property
• Our Home Mortgage and Land Finance Programs
• Our Vacation Rental Services
• Our Specialized Marketing targeting the Rural America Lifestyle
• Our many other quality assistance programs

1. Ability to Sell
2. Ability to Borrow
3. Security of Possession

You probably heard the term 'marketability'.  In real estate it refers to the "speed or ease with which a property can be sold at or near its market value; its expected market appeal".*  When you hear the term marketable title, it means the 'title to a piece of real estate that is reasonably free from risk of litigation over possible defects, and while it may not be perfect, it is free from plausible or reasonable objections, and is one that a court of law would order the buyer to accept".** 

Title that is clear of all claims or disputed interest is referred to as Clear Title. It is necessary to have clear title to a piece of real estate before it can be sold by one party to another. In order to obtain a clear title, it is usually necessary to have a title search performed by a title company, which may find various clouds on the title such as an incomplete certificate of occupancy, outstanding building violations, claims by neighbors for pieces of the property, or an inaccurate survey. Once these objections have been resolved, the owner will have a clear and marketable title.***