What more can homebuyers ask for? Never in the last many decades have buyers been in such a perfect situation. After several years of a soft real-estate market in Santa Fe, values are extremely attractive. Buyers have been able to receive excellent values in recent sales. Buyers from Dallas , Houston, New York, L.A. ( film people) and Washington, D.C., all love Santa Fe and are purchasing properties here with great gusto.

The financial markets over the last several years have implemented stronger, more restrictive lending guidelines, reducing the number of qualified buyers. Basically, if you qualify for a loan you have great opportunities and the buying competition has been reduced. Ron Blessey at Superior Mortgage Services says, "It is imperative for buyers to have a knowledgeable lender who can navigate through the new legislation in the lending world."

Buyers during the first part of 2009 have negotiated sternly with sellers. However, if the nation's recession is over, as the media reports, prices may be on the rise in the near future. No one knows for sure, but really good deals may not last to the end of 2009. As the economy and stock market recover, buyers will have more funds to invest in Santa Fe real estate, increasing buyer competition and pushing values higher.

Interest rates at this point in 2009 are low. The 30-year fixed-rate mortgage is in the 5 percent area, adjustables are near 4 percent, and jumbo adjustables are below 5 percent. Will rates rise in the future? Absolutely. It's just a matter of when.

Buyers also have a first-time homebuyer's tax credit that will save them from $7,000 to $8,000 in federal taxes. This benefit is available to many people who are buying their first home, but it expires after Dec. 1.

"Real estate has historically been a great investment, therefore people should have real estate as a major part of their portfolio," said Francesca Stedman with Prudential Santa Fe Real Estate. "At Prudential, we currently have excellent opportunities for real estate purchases at aggressive prices."

Don't be one of those who will look back, asking, "Why didn't I buy in 2009?" The window of opportunity closes when (1) interest rates increase, (2) sellers expect higher prices, (3) the economy improves, (4) the tax credit disappears, and (5) inflation reappears. Take advantage now before the window closes!



Jim Gay was a real-estate broker for 20 years and has been a consultant to Fortune 500 companies. He is executive senior loan officer/partner with Superior Mortgage Services (505-988-4422) in Santa Fe.