Reflections on Today’s Real Estate Market

Let us define the market.  Real estate markets are local and/or regional, so where are we in the Northern New Mexico real estate market, specifically the market for recreational/ranch properties?

There is no question that the real estate market nationwide is experiencing the most severe slump in history.  Record numbers of residential properties stand empty, either unsold or abandoned.  Record numbers more remain occupied and for sale with little hope for a buyer.  The entire populace is bombarded constantly with negative economic news making any potential buyers reluctant to enter the market.  This is the residential market, a market that was hugely inflated in past years, a market that topped out with speculators as the primary buyers and remains a market with heavy reliance upon financing.  Today it is a market clogged with supply, dropping prices, lack of demand and a nearly nonfunctional lending sector.  It will take years to turn this ship around.  Buyers have absolutely no incentive to enter now.

This is not the market I participate in.  My market has never been more robust.  In the past year I have set personal and company records for sales and production.  My product: Northern New Mexico Recreational properties with primary emphasis on fly fishing, ranches and mountain cabins.  Demand is not a problem; there are more buyers than qualified product.  Financing is not a problem, 95% of my sales are cash.  The only problem I face is locating qualified properties to meet my backlog of buyers.

I am currently looking at a backlog of orders in excess of $150,000,000.00. 

There simply is not enough supply to meet current demand.  This is not to say that there are no properties on the market.  There is always something for sale but buyers are quite specific about their needs with respect to the qualities and characteristics of a potential purchase and frankly most offerings just don’t measure up.  My buyers are not interested in dirt.

Buyers are seeking romance.  They want to share ownership with the inherent beauty of our New Mexico landscape. They want privacy, tranquility, big views, room to stretch out, wildlife, hunting and fishing.  They want to feel remote but need accessibility.  Some want great infrastructure but more and more just want the land so they can execute their personal vision.

They all share themes of the same dream, walking on land that is theirs as far as they can see, casting a fly to a trout in their own stream, snowmobiling to their own mountain cabin, or visiting their own private gated retreat complete with a gourmet restaurant/lodge/spa.  Each dream is different but undeniably linked to a romance with open space and the unmatched beauty of “El Norte”.

What do I see for the future?  Today’s market reflects just a small portion of potential buyers.  Our story is almost completely unknown in the national marketplace.  In the past, New Mexico’s recreational market has been bypassed by the growth in Arizona, Colorado, Montana and other parts of the West.  This is changing rapidly as buyers realize we offer so much more than our higher profile neighbors.  New Mexico is just coming into view of future investors.  Buyers are beginning to appreciate that we offer all the benefits of living in the Rocky Mountain Corridor but without those several months a year of unpleasant weather (read Fall & Spring to the north and Summer to the south).  They are fast becoming aware that our three hundred days of sunshine, year round fishing season, the nation’s largest elk herds, world class skiing and centuries old culture make us a bargain in today’s market.

The only problem is there isn’t much supply.  Between the state & federal governments and Native American tribal land, private property in desired locations is pretty hard to come by.  In fact, it’s my guess that many potential buyers are deterred from completing their search in New Mexico because it seems impossible to find appropriate opportunities.

Fortunately, that’s where I come in.  Today my website and data base are the most up to date and complete sources of Northern New Mexico recreational properties in existence.  More important I have established relationships with current land owners that will allow me to guide clients to properties that will never appear in the public domain.

I love this land.  I never fail to be awed by my travels through it and remain so very thankful I was led to this most special place.

For those that choose to join this fraternity that is “Norteno”, I know, in time, you will feel the same.