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December 2008 ~ Volume 1, Issue 2 | |
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Inside Chama Real Estate Your Hip Pocket Guide to the Chama River Valley!
Merry Christmas!
I recorded a special Christmas greeting for you. Please click here to play it now.
United Country gave back to our Community this Christmas with donations in the names of our Clients and Customers to both the Chama Valley Chamber of Commerce Christmas Box Drive and to the Chama Valley Humane Society. I want to say THANK YOU to all of you who contributed to these charities with us.
In the true spirit of the season, wishing you peace and joy. What you'll find in this issue:
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| Chama's Own Grocery Store - Back in Business! |
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Last January, the weight of the snow caved in the roof of Chama's only grocery store. (The next nearest one is 25 miles away!)
We are looking forward to its reopening on December 17th. It's been a long year (and a lot of extra driving!)
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 Featured Article |
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Is There Any Truth in Today's National Real Estate Market?
Part 2 of 2 |
Predicting the Future
Now I've been accused of doing magic but I don't have a crystal ball! However, we can get a better perspective to see where this Real Estate Market is going by:
- Studying our national and local data
- Looking at the Federal Reserve
- Looking at the history of the last 100 years
If I could tell fortunes (new career?), I would certainly bone up on the following statistics before making an opinion. As I learned in high school, the basic principal of supply and demand is the foundation of every economy the world has known.
1. Demand
People are living longer and our population is growing. In fact, the world population is growing by 90 million people a year! And they need a place to live!
2. Supply
In January 2008, all major development loans came to a complete, screeching halt. The FDIC took over IndyMac Bank, the largest new construction lender in the world. In January 2008, with the constriction on new home sales, it was estimated the nation had a 3-year housing inventory.
Nonetheless, by August, (the latest numbers available) the Housing Inventory declined; 4.26 million existing homes on the market -equivalent to a supply of approximately 10.4 months at their current sales price.
Supply and Demand in the housing market is considered balanced when the inventory settles at about six (6) months according to the National Association of Realtors.
3. Banking
The lending industry is much more difficult and complicated than ever before in our history. In the first 242 days of this year, one major lender reported 247 underwriting changes! No wonder we had 3 to 4 transactions within the last month terminate for lack of financing.
Nevertheless, our banking industry today quickly admits that they are part of the problem- another first in our history. They are being more cooperative with short sales, loan modifications, re-caps and dealing with foreclosures. Actually, they are more humble to deal with (but we still lost those transactions)!
I believe, though, the lending industry will figure this out and hopefully we'll see the financing packages a little easier to obtain by mid 2009. IndyMac is looking at every single loan they have- state by state- essentially re-doing their loan ratios. In other words, they are adjusting payments to fit people's current incomes in a '38% loan to income ratio' instead of the many loans of up to 50% of income! This will keep the percentage of foreclosures from hitting the market all at once, which helps to keep the housing market stable.
4. Baby-Boomers
Last year AARP estimates that $73 trillion of asset base was in the hands of the Baby Boomer Generation (born between the years 1946-1964). Today AARP estimates that portfolio is closer to $55 trillion.
Baby Boomers own more homes than the national average with one out of four owning more than one property and they appreciate real estate as a great investment. 13% of the nearly 76 million baby boomers own land and 7% own a vacation home or seasonally occupied property.
However, with the recent economic meltdown, baby boomers reaching retirement have seen their portfolios shrink by a third and are expected to continue working 2-5 more years to make up for losses.
To sum it up, looking at our supply and demand, our financing and economic issues, our past history of the cycles of economic growth, boom, recession, it is estimated that our housing market will return to the levels we saw in 2005 in 10 years! Yes sir, that is what I said - 2018!
On the other hand, I think we will see 4.5 to 5 million transactions nationally in 2009, which is more than we saw in the 70's, 80's and the 90's.
*The facts and figures in this article are from the same sources used by CNN and the national networks. An interesting point is that the news media concentrates on gloom and doom; it will take one fact and exploit it while ignoring the corresponding fact next to it. Sources: Buffini and Compnay; Wall Street Journal; Moody's Economy.com; RealtyTrac; National Association of REALTORS; Forbes.
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| About Susan |
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 Susan Jane Mundy is CEO of United Country-Northern New Mexico Real Estate, Inc. a consulting and service oriented real estate Company devoted to delivering a stress-free buying, selling and living experience in the Chama River Valley.
If you would like to share in our paradise, be sure to visit us online at www.ChamaNewMexicoRealEstate.com.
If you would like to find out more about our many services:
- 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
Please email me or any of my Real Estate Specialists at info@nnmre.com. |
| Valley Market Statistics |
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What does this all mean to the Chama River Valley? Below, you will find some charts I made illustrating the Chama River Valley  Residential Market at the end of 2008 as compared to 2004. (I will recap the Vacant Land Market next month.)
- Residential Sold Listings 2004-2008 (click here for chart)
- Residential Active Listings 2007-2008 (click here for chart)
- Average List Price vs. Average Sales Price (click here for chart)
- Total MLS Residential Properties (click here for chart)
- Average Days on Market (click here for chart)
In summary:
- Twice as many residential properties hit our market in 2008 than 2004
- 2008 shows a closer ratio between Listing and Selling Price indicating that Sellers are pricing their homes closer to the market value than in both 2006 and 2007
- Twice as many Active Listings remaining on the market at 2008 year end than in 2007
- 2008 reveals listings in the $600,000 and up range
- More residential properties sold in 2007 than in 2006, 2005, and 2004
- More higher valued properties sold in 2008 than in previous years
- Properties average days on the market are LESS in 2008 than any previous year.
I believe the most important statistic is on Chart #3. 2005 shows properties selling slightly above the listing price indicating that Properties were priced close to their market value. If Sellers want a quicker sale, then some price adjustments will be necessary in 2009 to meet market value.
The Santa Fe MLS shows 29 residential listings sold in 2007 and 25 residential listings sold in 2008. Since there are 41 Active Residential Listings remaining on our market, I estimate the Valley has a 1.5+ year inventory as of December 2008.
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| Today's History Fact |
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From 1610 to 1680, hundreds of colonists moved to New Mexico. Franciscans went among the far-flung pueblos converting Indians to Christianity and building missions. But there was great unrest in the colony. Civil and religious officials quarreled about who had the superior authority. The Indians were often mistreated, and many of them resented the new religious faith.
At this time, Pope, a celebrated Tewa medicine-man and native of the Pueblo of San Juan living in Taos, preached for the independence from Spanish authority and the restoration of the old Pueblo life. Met with enthusiasm as it spread among the Pueblos, the 'sermon' developed into a plot to murder or drive from the colony the 2400 Spanish colonists and priests.
 The day chosen for the attack was August 13, 1680. The news was communicated to the Pueblos by runners, even as far as the Hopi in Arizona, by means of a knotted string. Every precaution was taken to keep the Spaniards 'in the dark' of the proposed revolt; no woman was permitted to know of it! Pope even suspected his brother-in-law of treachery so he put him to death.
Nevertheless, the news leaked out, so Pope struck at once. On August 10, four hundred Spanish colonists, including 21 priests, were murdered. Santa Fe was besieged with a thousand inhabitants taking refuge with Governor Antonio de Otermin in the official buildings. They stayed there for 10 days until, on August 20, a sortie of 100 men routed the Indians, killing 200 and hanging 47 in the town plaza. The next day the Spaniards abandoned Santa Fe retreating down the Rio Grande. Governor Otermin established his headquarters in El Paso (now Juarez) Mexico.
Ruling from the Palace of the Governors in Santa Fe, Pope set out to realize the rest of his dream. Those baptized as Christians were washed with yucca suds; the Spanish language and all baptismal names were abolished; churches were burned and all Christian objects were destroyed, effectively obliterating everything Spanish. Pope dressed in ceremonial garb as he went from Pueblo to Pueblo and was received with honor.
However, his success 'went to his head'. He became a despot, putting to death those who refused to obey him and he took the most beautiful women for himself and his captains. The old enemies of the Pueblos intervened; drought and the Apache and Ute assumed their forays. Internal dissension began with the Keresan tribes, Taos and Pecos people fighting against the Tewa and Tanos, with the latter deposing Pope and electing in his place Luis Tupatú. Tupatú ruled the Tewa and Tanos until 1688 when Pope was again elected. However, Pope died before the re-conquest of New Mexico by Captain General Diego De Vargas. The Captain led a bloodless recapture within 4 months after his small army left El Paso in August, 1692.
*Eagle Dancer, Ohkay Owingeh (San Juan Pueblo), Mike Spieth, Flickr
**Access Genealogy Office Indian Tribal Records
***Land Title Study, White, Koch, Kelley and McCarthy, New Mexico State Planning
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| Associate Quick Tip: Stage Your Home to Sell |
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Each month, one of my Real Estate Specialists will give you one quick advice tip on having a stress-free real estate transaction. Here is December's tip...
CHRISTIE ANDERSON, MANAGING BROKER SAYS: Let the sun shine in! Buyers love light and airy living rooms, but dark and dingy isn't on their list. Open up your window shades to let some light in. Cheat some sunshine with a light-colored paint and lots of artificial lighting. You can never have too many lamps. Last, arrange the space with lightly colored furniture, and you'll have a living room that brightens your chances of a sale.
Click each picture below to see this month's Featured Homes!
 
We expertly staged both these unique homes and hired an award-winning professional photographer to present them to the marketplace. These are complimentary services included with your listing contract. Contact us today via email at info@nnmre.com or call toll free 800-288-1363 for a free listing consultation. |
| Your Questions and My Answers! |
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Q. What's happening with Canyon Ridge? (Thank you, Dwayne Dickerson, for your question!)
A. Since some of you may not be aware of the new community in the Chama River Valley, I'll give a brief explanation of the residential project.
Canyon Ridge was once a part of my family's 18,000+ acre ranch. My father-in-law, Bill Mundy, bought the original ranch property in 1949 and added this piece in the 1960's. Sheep and cattle were the primary sources of income for the Mundy Family, along with select mule deer and elk hunting.
 In 1995, we sold this 5700+ acres to an orthopedic surgeon from San Angelo. United Country sold the ranch for him to Rare Earth New Mexico in June 2007. Rare Earth's Canyon Ridge starts at an elevation of 9,000 feet to soar to 10,500 feet above sea level. 81 families will have access to over 5700+ acres of pristine wilderness. (Ranch sites range between 10-60 acres.)
The main access road from Highway 512 (Brazos Lodge Road) winds it way through the Mundy Ranch and is almost complete except for its gravel dressing. On your way to the Ranch sites, this impressive road will take your breath away as you gaze at the commanding views of the Chama River Valley. Tract 1, comprised of 24 Ranch sites, is on the market with one sold and five pending transactions. Ranch prices start at $550,000.
Some of the mountain bike and equestrian trails, access to the Indian Camp on Chavez Creek and the clearing of the lodge site on the Red Bluffs, began this season (June to first snow). If you drive east on Highway 512, you will see the entrance gate on the left. It still needs its finishing touches, and the logos for both Canyon Ridge and Mundy Ranch need to be installed.
 Of course, now we have snow and are expecting another foot this week. Nonetheless, Canyon Ridge plans to keep the road open as long as feasible, and then they will offer snowmobiles to get customers on the property. Last year, they used a helicopter and a snowcat (an enclosed-cab, truck sized, fully tracked vehicle designed to move on snow)!
Be sure to send your questions to me at Susan@nnmre.com. If I don't answer them here, I will send a personal email to you with an answer!
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| About United Country & Northern New Mexico Real Estate |
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For over 80 years, United Country has helped people like you rediscover a dream  that's as old as America itself; love of the land, and the dream of owning property. United Country has been uniting buyers and sellers of country real estate since 1925.
Northern New Mexico Real Estate, Inc. will celebrate its 50th anniversary in 2009! Our affiliation with United Country connects us to the most sophisticated marketing systems for rural properties in the U.S. Together we've grown into the largest, most respected real estate firm in the Chama River Valley.
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| Susan Recommends |
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Introducing My Business Directory! |
Given that Northern New Mexico Real Estate has been in business in the Chama River Valley for over 50 years, I'm able to compile a list of quality business referrals  to pass onto my clients. If you had a personal, quality experience with a local service provider that you can recommend, why not pass along their contact information to me? I will add them to my Business Directory. You can send their contact information to me at Susan@nnmre.com.
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| Today's Testimonial |
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Sent to Michelle Marino, Realtor/QSC, Associate Broker
"Dear Michele,
We very much appreciate the gift card - Thanks! We are at Lowe's several times a month. We so appreciate your friendship & service to us. You were so supportive, understanding, & the best agent we have ever had! Thanks so much for all of your hard work and time....no one could ask for more than what [she] did for us!!!"
- Larry and Dottie Austin
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We now have a Testimonial Line that you can call and record your own comments about your agent, our company, or the experience you have had with us. We'd love to hear what YOU have to say. Call 214-615-6505, extension 2280!
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| Our Easy Exit Guarantee |
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What is your biggest fear when you list your property with a real estate agent? Is it you worry about being stuck in a prolonged listing agreement with an incompetent agent, costing your property precious market time and exposure on the market?
 Well, worry no more. The Real Estate Specialists at United Country-Northern New Mexico Real Estate take those worries and concerns out of listing your property with a real estate agent through our EASY EXIT GUARANTEE!
The reason why United County-Northern New Mexico Real Estate offers the EASY EXIT GUARANTEE is because our business is built upon referrals from our clients. We believe that if a client is unhappy with their agent, they should have the right to fire them!
It takes supreme confidence in the way you treat your clients and in the results you can produce to offer this type of guarantee. I am confident that you will be 100% satisfied selling your property with United Country-Northern New Mexico Real Estate!
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Susan Jane Mundy
United Country - Northern New Mexico Real Estate, Inc.
1-800-288-1363 |
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