The Different Dynamics of the Taos Real Estate Market

The Taos, NM real estate market is influenced heavily by vacation and resort property ownership. There are few who relocate to Taos for jobs, though the local hospital has been growing at a rapid rate. Our market is fueled by the vacation home buyer and, more each year, by the baby boomer retiree. This fact brings about very different market dynamics than in many areas of the country.

1. Buyers usually do not have to buy property.
2. Sellers many times do not have to sell.

Those are two important statements. A vacation homeowner in the Taos real estate market is one who enjoys their home several times each year. Though they may be eying another area of the country in which to recreate, they usually aren't pressed to do so. The seller of Taos real estate will frequently list the property at the high end of the expected selling price range. They are willing to wait out a buyer while they continue to enjoy their vacations here.

The buyer of a Taos vacation home is one who likely has been coming to Taos for many years, enjoys the area, and believes that owning a home will be a better investment than continuing to rent homes, condos or hotel rooms. Again, there isn't a lot of pressure to make a purchase, just the desire to explore a better way to pay for their vacation lodging, as well as enjoy the historic Taos real estate appreciation increases.

So, we have a less-than-motivated seller, and a buyer who isn't really sure that it's what they want to do. The buyer is definitely sure that they do not have to purchase. This makes the negotiation phase of Taos real estate sales a bit tougher. It is rare for deals to fall out here due to financing, but it is common for them to never reach an agreement on price or terms. If one is considering a purchase in the Taos real estate market, be prepared for a seller who is willing to hold the line for their price. This is more prevalent with homes than with land, however. In slower market periods, some bargains can be realized with aggressive negotiations on vacant land.