Property Q&A in Placitas>Question Details

Kathymichael, Home Buyer in Placitas, NM

Why are the home prices in Placitas not decreasing in a considerable rate although they are remaining on the market for a long time?

Asked by Kathymichael, Placitas, NM Sat Oct 9, 2010

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Wow I love that you asked this. Rich has given a great insight into the area. Placitas is an upper end neighborhood with great price stability. Thats why this property… is unheard of in this area. This home will bring in an appraisal of $570k to $590k in today's market. This is what you would expect from a short sale, foreclosure, bank owned property if that ws typical for this area but its not. Historically it is a great place to live; privacy, acreage and more. The owner has gone on to do philanthropic work outside of New Mexico. You could make a movie on the life changing path she took and the affect she is making. Unfortuneatly for her (but fortunately for the buyer) she has to sell now! The fact that its not a bank owned means you will not have to work so hard to get as everyone will tell you that short sale foreclosure bank owned properties come with. Furthermore if you have a Loan to Value issue with your loan approval then this home is for you. You get instant equity in a neighborhood that is known for price stability and an easier process to get through. Now if you look at posts here and on the net you will never see us promote a property like this but seeing the question seemed made for it. 505-980-2999 if this property might work or you have further questions.
0 votes Thank Flag Link Sun Oct 10, 2010
Financially established homeowners in higher valued areas like Plactias and Corrales have the ability to hold their properties and ride out the down market. Homeowners in more affordable areas were more likely first time home buyers who bought at the peak of the housing market in 2006 and put zero down. Many of these first time homebuyers couldn't afford their loans to begin with, so when they lost a job or didn't get that promotion or raise they were counting on or couldn't refinance to pay their bills they were forced to sell as a short sale or let their homes get foreclosed upon.

I got a little side tracked there but I think it all comes back to the fact the the sellers in more established higher end areas are not in the financial bind that sellers in other areas are. They are less motivated to sell at today's reduced values and are choosing not to reduce or sell.
0 votes Thank Flag Link Sat Oct 9, 2010
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