The ‘new normal’ in Taos real estate
High demand, low supply and sight-unseen sales — an interview with Diane Enright
WITH MORE THAN 30 years of real estate experience in Taos, Diane Enright, with Berkshire Hathaway, has seen a little bit of everything, including a couple of large, Texas rattlesnakes left behind in a freezer by a busy seller. The homebuyer’s young son, however, was thrilled and the frozen treats became the unexpected hit of their housewarming party. Frozen rattlesnakes aside, 2020 served up a lot of unexpected scenarios and everyone wants to know what is happening with the Taos real estate market. Enright’s team, guided in part by Janet Dearing, her Office Manager for 15 years, is watching in wonder along with the rest of us as ‘For Sale’ signs pop up and disappear at lightning speed.
How has the pandemic affected the real estate market in Taos?
Taos is small and only 30 percent of Taos County is privately owned. There is a lot of USFS, National Monument, Bureau of Land Management, and Taos Pueblo land which keeps density low. These days we are seeing a greater emphasis on quality of life and Taos is a natural fit for the times. Our market is booming. Due to the pandemic, nearly half of the workforce in the U.S. can now work remotely, so for the first time ever, people can choose where they live and work and people are choosing Taos. When we add the number of professionals relocating here who can work from home to the people already moving here including artists, retirees, and second homeowners, in a short amount of time the inventory has dried up. That has resulted in prices going up which has made Taos a very competitive market. There’s a lot of demand and not enough supply.
How has working during the COVID-19 pandemic changed life for real estate agents and their clients?
It has certainly made the experience less intimate. We are all masked. We don’t drive in the same car. We meet clients at the property, almost all contracts are remote with electronic signatures, and we’re not invited to attend closings with our clients. Add to the fact that most buyers have looked online and much of our communication is electronic, it’s not exactly the way to get to know someone. One of the best times to get to know a clients’ likes and dislikes is in the car after leaving a property and that can’t happen now.
It sounds like Taos is experiencing a seller’s market?
Yes, it’s definitely a seller’s market.
In my 30-plus years of real estate in Taos, this is probably the best time to sell that I’ve ever seen. We’re even seeing a lot of ‘sight-unseen’ sales. But, sellers should be aware that most of the deals that end up terminating are due to property maintenance concerns. Properties still need to be well-maintained to get the best price.
With the influx of people moving to the area, is Taos’ demographic changing?
To an extent, yes. We’re seeing younger people moving here, including singles and families with young children. Younger folks are more likely to travel now to look for property while older buyers are more cautious with virus concerns so we’re seeing a younger and more diverse group of buyers. Our heavy hitters are still coming from Colorado and Texas, but we’re seeing more buyers from California now than before.
Has the average price changed? Should we be concerned that our local residents will be priced out?
Home sales have sky-rocketed.
A couple of years ago the majority of sales were $350,000 and under and now that number is $500,000 and under, with more sales in the upper end this year than in the last several. The number of single family home sales in the Taos area was up 22 percent last year and the average sale price increased by 5 percent. Affordable housing was already a big concern and the current trend is not good news for first time and local buyers. One big positive for buyers is that interest rates are so low that buyers may be able to move up in price.
What does your crystal ball say about what’s around the next corner?
When more people are vaccinated and the number of COVID cases decline, we should see more inventory, but we may also see more buyers willing to travel in their search. Looking at what’s under contract and what’s already sold this year, by the end of March the average sale price will likely be $400,000 and higher. The historically low interest rates are expected to continue. Inventory will remain lower than normal so 2021 looks like another crazy year in real estate.