The following piece from the New York Times outlines the nationwide foreclosure situation and discusses how much worse it may get.

ARTICLE:

As Lenders Hold Homes in Foreclosure, Sales Are Hurt
 
By Eric Dash; The New York Times

El Mirage, Ariz. — The nation’s biggest banks and mortgage lenders have steadily amassed real estate empires, acquiring a glut of foreclosed homes that threatens to deepen the housing slump and create a further drag on the economic recovery.

All told, they own more than 872,000 homes as a result of the groundswell in foreclosures, almost twice as many as when the financial crisis began in 2007, according to RealtyTrac, a real estate data provider. In addition, they are in the process of foreclosing on an additional one million homes and are poised to take possession of several million more in the years ahead.

Five years after the housing market started teetering, economists now worry that the rise in lender-owned homes could create another vicious circle, in which the growing inventory of distressed property further depresses home values and leads to even more distressed sales. With the spring home-selling season under way, real estate prices have been declining across the country in recent months.

“It remains a heavy weight on the banking system,” said Mark Zandi, the chief economist of Moody’s Analytics. “Housing prices are falling, and they are going to fall some more.”

Over all, economists project that it would take about three years for lenders to sell their backlog of foreclosed homes. As a result, home values nationally could fall 5 percent by the end of 2011, according to Moody’s, and rise only modestly over the following year. Regions that were hardest hit by the housing collapse and recession could take even longer to recover — dealing yet another blow to a still-struggling economy.

Although sales have picked up a bit in the last few weeks, banks and other lenders remain overwhelmed by the wave of foreclosures. In Atlanta, lenders are repossessing eight homes for each distressed home they sell, according to March data from RealtyTrac. In Minneapolis, they are bringing in at least six foreclosed homes for each they sell, and in once-hot markets like Chicago and Miami, the ratio still hovers close to two to one.

Before the housing implosion, the inflow and outflow figures were typically one-to-one.

The reasons for the backlog include inadequate staffs and delays imposed by the lenders because of investigations into foreclosure practices. The pileup could lead to $40 billion in additional losses for banks and other lenders as they sell houses at steep discounts over the next two years, according to Trepp, a real estate research firm.

“These shops are under siege; it’s just a tsunami of stuff coming in,” said Taj Bindra, who oversaw Washington Mutual’s servicing unit from 2004 to 2006 and now advises financial institutions on risk management. “Lenders have a strong incentive to clear out inventory in a controlled and timely manner, but if you had problems on the front end of the foreclosure process, it should be no surprise you are having problems on the back end.”

A drive through the sprawling subdivisions outside Phoenix shows the ravages of the real estate collapse. Here in this working-class neighborhood of El Mirage, northwest of Phoenix, rows of small stucco homes sprouted up during the boom. Now block after block is pockmarked by properties with overgrown shrubs, weeds and foreclosure notices tacked to the doors. About 116 lender-owned homes are on the market or under contract in El Mirage, according to local real estate listings.

But that’s just a small fraction of what is to come. An additional 491 houses are either sitting in the lenders’ inventory or are in the foreclosure process. On average, homes in El Mirage sell for $65,300, down 75 percent from the height of the boom in July 2006, according to the Cromford Report, a Phoenix-area real estate data provider. Real estate agents and market analysts say those ultra-cheap prices have recently started attracting first-time buyers as well as investors looking for several properties at once.

Lenders have also been more willing to let distressed borrowers sidestep foreclosure by selling homes for a loss. That has accelerated the pace of sales in the area and even caused prices to slowly rise in the last two months, but realty agents worry about all the distressed homes that are coming down the pike.

“My biggest fear right now is that the supply has been artificially restricted,” said Jayson Meyerovitz, a local broker. “They can’t just sit there forever. If so many houses hit the market, what is going to happen then?”

The major lenders say they are not deliberately holding back any foreclosed homes. They say that a long sales process can stigmatize a property and ratchet up maintenance and other costs. But they also do not want to unload properties in a fire sale.

“If we are out there undercutting prices, we are contributing to the downward spiral in market values,” said Eric Will, who oversees distressed home sales for Freddie Mac. “We want to make sure we are helping stabilize communities.”

The biggest reason for the backlog is that it takes longer to sell foreclosed homes, currently an average of 176 days — and that’s after the 400 days it takes for lenders to foreclose. After drawing government scrutiny over improper foreclosures practices last fall, many big lenders have slowed their operations in order to check the paperwork, and in two dozen or so states they halted them for months.

Conscious of their image, many lenders have recently started telling real estate agents to be more lenient to renters who happen to live in a foreclosed home and give them extra time to move out before changing the locks.

“Wells Fargo has sent me back knocking on doors two or three times, offering to give renters money if they cooperate with us,” said Claude A. Worrell, a longtime real estate agent from Minneapolis who specializes in selling bank-owned property. “It’s a lot different than it used to be.”

Realty agents and buyers say the lenders are simply overwhelmed. Just as lenders were ill-prepared to handle the flood of foreclosures, they do not have the staff and infrastructure to manage and sell this much property.

Most of the major lenders outsourced almost every part of the process, be it sales or repairs. Some agents complain that lender-owned home listings are routinely out of date, that properties are overpriced by as much as 10 percent, and that lenders take days or longer to accept an offer.

The silver lining for home lenders, however, is that the number of new foreclosures and recent borrowers falling behind on their payments by three months or longer is shrinking.

“If they are able to manage through the next 12 to 18 months,” said Mr. Zandi, the Moody’s Analytics economist, “they will be in really good shape.”

Link to Original Article in the New York Times Here

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ARTICLE:

Infectious confections line Santa Fe’s Chocolate Trail. Santa Fe’s renown chocolate trail is dotted with artisan shops that satisfy the sweet tooth

By: Jill Koenigsdorf | For The New Mexican

Any town that has four world-class chocolate shops in a 5-mile radius is my kind of town. Santa Fe is home to the infamous Chocolate Trail, a cocoa-dusted route that connects four esteemed purveyors of this fine food of the gods. Incredible as it sounds, there are actually some people who eat or give chocolates only on holidays — but now that science has informed us chocolate is chock full of health-giving flavonoids and antioxidants, we can all enjoy some guilt-free trailblazing.

Todos Santos

Entering Hayward Simoneaux’s 11-year-old Todos Santos is like stepping into a chocolate-dappled wonderland. The eyes roam from folk-art Pez dispensers depicting Ganesh and Wonder Woman to a parade of giant lollipops, and then to a case filled with antique chocolate molds in the shape of a crayfish, a skull and even a revolver.

Simoneaux is a New Orleans transplant who became interested in making chocolate in part because
he was collecting old chocolate molds he wanted to put to use. He puts much creativity and care into the presentation of his wares, and you will find delectable chocolates tucked inside anything from miniature Mexican wrestler masks, to containers made from recycled telephone keys, to little boxes that look like ancient books.

And what’s inside the pretty packages transports the taste buds to chocolate nirvana. His truffles are perfumed with rare pairings like tarragon and candied grapefruit peel, or hickory-smoked sea salt. And the pumpkin-seed toffee is to die for.

His chocolate milagros, costing between $12 and $30, are coated in edible silver or gold and are works of art. The shop’s pricing ranges from $1.50 for a playful foil-covered chocolate ring to $125 for a majestic tower.

Elegance meets fun in this festive shop.

Kakawa Chocolate House

What do Marie Antoinette, Thomas Jefferson and Aztec warriors have in common? They all drank elixirs made from chocolate. Peter Wolf, owner of the 5-year-old Kakawa Chocolate House, is doing his best to replicate the same concoctions revered throughout history — when chocolate was for kings and cocoa was so precious it was used as a currency.

But you won’t find anything even remotely resembling Swiss Miss. What you will find is thick, exotic brews flavored with ingredients such as roses, nuts, ancho chile, hibiscus and musk. The drinks are $3.50 for 3 ounces or $6.50 for
6 ounces.

The chocolatiers use mostly organic ingredients, sweeten with agave or honey and often substitute oat or almond milk for dairy. For Valentine’s Day, they offer The Love Potion, a sensuous concoction that uses an herb called damiana, known for its aphrodisiac properties. And if these rich beverages of the ancients still haven’t fully satisfied your yen for chocolate, don’t leave before trying one of the pomegranate or lavender truffles ($3 each).

The chocolatiers at Kakawa are passionate about these creations, so much so that chocolate expert Ariana Rossi has the DNA of chocolate tattooed on her arm.

C.G. Higgins Confections

Over the last 17 years, owner Chuck Higgins routinely has sold about 12,000 caramel apples during the two weeks of the state fair — a feat that requires about two tons of caramel. Knowing that should instill confidence that this man knows his sweets. And if this isn’t enough, C.G. Higgins is the official candymaker for Santa Fe’s 400th anniversary. His Chile Caramel Corn and Chile Pecan Brittle each took home first place at the renowned Fiery Foods show in Albuquerque.

Higgins offers a different take on truffles, using high-quality Guittard chocolate as the base, but omitting the hot cream often found in the chocolate ganache. That gives the treats a longer shelf life.

The center of his truffles — which cost $3 each — has a wonderful fudgy texture, and the
truffles come in tempting flavors like Blackberry Balsamic, Cardamom Raspberry or Jalapeño Lime. And what would Valentine’s Day be without chocolate-dipped strawberries? Higgins is already taking orders for these sexy treats, which are made on-site that very day. They sell for
$3.50 per delight, and six for $20.

If it’s fudge you desire, you’ve come to the right place. Black Forest Cherry, Chocolate Pecan, Raspberry Chipolata, or tried-and-true Maple Nut are all available for $17 per pound. Patrons can also enjoy happy hour in the cozy cafe, with specially priced sipping chocolates and espressos available from 4 to 6 p.m.

The Chocolate Smith

Jeff and Kari Keenan, owners of this 9-year-old confectionery, must know that once customers taste their chocolates, they will be hooked. The Keenans have copious amounts of samples on every flat surface. The aroma of chocolate fills the air, coming from the open kitchen that shares the sales area. Customers can watch the chocolates being made and see the signature pâtés being cut on the marble slabs.

These yummy pâtés are a dense, firm ganache covered in Dutch cheese wax, which makes them perfect for travelers. The Chocolate Smith uses local and organic ingredients whenever possible. The shop’s barks are wildly popular, especially the White Chocolate Lemon Lavender or the Green Chile Pistachio varieties, which cost $8 per quarter-pound.

You can custom-make an assortment for
$29.50 a pound. Were I to do this, it would definitely include the sake-soaked, chocolate-covered ginger; the chocolate-dipped apricots; and the succulent Don Juan Pecan Italian soft-style caramels.

There are many grab-and-go gifts available for under $10. You can also go for the whimsical Day of the Dead tin gift boxes, which cost $24.95.

Link to Original Article

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This top ten list is as follows:

1)  Bend, Oregon: Once a destination town, now a highly sought after place to live, Bend represents a great place to find retirment real estate.

2) Las Vegas, Nevada: Into shows, gambling, and the sun.  Las Vegas has all of these.  Combine that with a giant inventory of homes, and prices 50% off what they were only a few years ago, and you’ve got a deal.

3) Phoenix, Arizona: See Las Vegas, without the gambling.

4) Napa, California: Fantastic weather, great proximity to a world class city and pristine vineyards, lower prices have made this a desirable place to find a retirement home.

5) Fayetteville, Arkansas: Home to the University of Arkansas, low home prices reign supreme for retirees.

6) Punta Gorda, Florida: If boating, fishing, and hugely discounted real estate is your thing, this place may be for you.

7) Burlington, Vermont: This beautiful Northeastern hamlet has great restaurants, outdoor activities, and the University of Vermont.

8) Ft. Meyers, Florida: See Punta Gorda, but bigger.

9) Santa Fe, New Mexico: If you’re reading this, you know why this place is so great. If you don’t, give us a call and come visit!

10) Santa Cruz, California: While still expensive, home prices have dropped. Combine that with some of the best California coastline and a laid back attitude and you possibly have retirement heaven.

Link to the U.S. News and World Report Here

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Perfectly sited on almost 3 acres, this impeccably built Tesque estate is certainly worthy of a magazine cover! As you enter the home  you are immediately drawn to the unobstructed Jemez Mountain views framed by the formal living and dining rooms. Just beyond the dining room is the gorgeously appointed kitchen (as profiled in the magazine), and the adjacent large walk in pantry. Open to the kitchen is the family room, which serves as the media center of the home and a great family gathering area. The picture window in the family room also offers expansive views of the Jemez mountains in the distance. A spacious room on this side of the home works well as an office or 4th bedroom- as it is complete with  its own  3/4 bath and walk-in closet.

A  private master bedroom, graced with a large fireplace, continues the  with theme of  stunning mountain views. His and Hers closets, a master bathroom with an infinity tub, dual sinks, and stand alone shower complete the master suite. The remaining two guest/kids bedrooms and bathroom are located in their own wing, adjacent to the large laundry room. 

Every detail of this home has been perfectly and beautifully planned, and every finish is of only the highest quality. The Su Casa article profiles the kitchen nicely, but the entire house deserves it own book!

Check out the Su Casa video of the kitchen below.

Link to Article in Su Casa Magazine

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Made of all adobe, quality construction is evident throughout this home. As you enter through the front door you are greeted by a kiva fireplace and warm plaster walls.  To the right is a very well equipped kitchen with a large pantry and nice finishes. To the left is the spacious bedroom wing with a full bathroom and ample closet space. Off the bedroom is a private courtyard area, perfect for morning tea/coffee, or an afternoon drink.

What really makes this place special is the location.  Located on classic Alto street, the Plaza is a 5 minute stroll away, the Railyard is just around the corner, and the DeVargas Mall is only a hop, skip and jump away.  This is truly a centrally located condo where many of Santa Fe’s amenities are at your fingertips.

548 Alto Street: Unit B, Santa Fe, NM 87501

Listing Description:

Located in the Guadalupe Historic District, this beautifully remodeled condo is only a couple blocks from the Plaza, Railyard District and Sanbusco Center. An upgraded kitchen, large master bedroom, and private patio area add to the charm of this warm and inviting home. The unit will make a great Santa Fe escape and can also be rented short term. A furniture package is available.

The warm and inviting living room with Kiva fireplace:

Click Here for More Information on 548 Alto Street

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The city has been offering rebates on water harvesting rain barrels and low flow toilets for the past couple of years. This year they decided to step it up a notch with the new rebate program in part due to the federal stimulus money for such programs.  The federal grant is for $440,000, which means that many more people can cash in on the program.

Rebates are distributed as credits on city water bills, and are only available to customers with their name on the city water bill.  The program does not apply to new construction within the city and it should be noted that not all “energy efficient” appliances qualify for the rebate.  Due to this, the city is advising consumers to read the guidelines prior to purchasing a new water saving device. Consumers must also fill out and submit a rebate form within 90 days of purchasing the appliance.

Ultimately, the rebate program saves the consumer in 2 ways.  First, the rebate helps pay for the new appliance.  While this won’t cover the total cost of, say, a new washing machine, it will help considerably. Second, over a short period of time the amount of water saved will add up significantly, leading to reduced water bills.

So, if you have an old washer or toilet that needs upgrading, now is the time.  It will save you money and conserve water.

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As with the rest of consumer goods, real estate buyers are spending their money more wisely, and being significantly more thoughtful about the process. Gone are the days of significant amounts of buyers looking for home theatres, 10 car garages, and foyers the size of football field. In general, buyers are thinking smaller, more efficient, and “green”.  All of these, of course, when the price is right.

Below is a list of 5 features that today’s home buyer is looking for:

1) The Kitchen Still Rules.One thing that hasn’t changed over the past 20 years is that people want a spacious, well organized kitchen.  This is the place where most buyers are willing to pay a bit more and sellers are smart to upgrade prior to putting their house on the market. This includes having upgraded counter tops, nice appliances, and an island.

2) Work From Home? Many buyers today would rather have a home office than a formal dining room. Why? Functionality.  More and more people are working from home, and this trend will most likely continue for some time.

3) Energy Efficiency. From energy efficient windows to energy efficient appliances, people are wanting to conserve.  This is not only an environmental movement, but an economic one.  It’s amazing how much money can be saved by upgrading windows, insulation, and appliances.

4) Outdoor Living Rooms. When you live in a place like Santa Fe where you can comfortably entertain outside 9 months of the year (O.K., this year may be an exception), buyers are looking for outdoor living areas. More and more buyers are wanting outdoor spaces to cook, eat, entertain, and just relax.  And with Santa Fe’s sunsets, who can blame them.

5) Main Floor Master Bedroom. With the baby-boomer generation aging, first floor master suites are steadily increasing in popularity.  We are especially seeing this trend in Santa Fe, where the population is, in general, older.  Even younger types are considering this as a nice option, with the ability to have doors that open directly to outdoor living spaces (see above).

I’m sure these trends will continue to change, but for now this is the norm.  And I like it.  I am really into a nice kitchens, I love to entertain outdoors, I enjoy my first floor bedroom, I often work from home, and I’m all about being green and saving money.

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A Classic Betty Stewart Home nestled in the lush Tesuque valley, this home with plaster walls, brick floors, a two-way fireplace, & vigas truly exudes charm & elegance. The wrap around portal provides venues for entertaining or relaxing in this serene setting. With a detached artist’s studio, the home is perfect for artists in residence or accomodating visiting guests. Recent updates to the kitchen, bathroom, and electrical system make this home move in ready. All of this conveniently located close to the Plaza, miles of hiking and biking trails, and the Tesuque Village Market.

When sitting in any one of the portals you feel as if you a entrenched in the beautiful country setting,  yet you are only 3.5 miles from the Plaza and everything Santa Fe has to offer. Within walking distance from this home is the Windsor Trail (a favorite running/hiking/biking trail for Ryan and Matt) and the many other trails leading into the National Forest. The Tesuque village center is also very close to the property, providing a great place to grab a pint of ice cream late at night, or a great dinner close to home.

This home is in immaculate condition, and would be suitable for a full time residence, a manageable Santa Fe reteat, or for use as a short term rental. 

Check out a video tour of the property below.

Give us a call if you or someone you know would like a personal tour of this exceptional home.

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One of the greatest attributes of this home is its location. The South Capital district is a cozy nieghborhood located within walking distance of nearly everything Santa Fe has to offer.  A two minute walk will get you to Kaune’s market, Ohori’s coffee, the State Capital, and the Guadalupe Cafe.  Walk another two minutes and you will be in the historic Santa Fe Plaza and all of the restaurants, galleries, museums, and shops in the vicinity.  The attractions of Canyon road are only a five minute walk from the house, and the Railyard district is only about seven minutes away. If you’re looking for a centrally located house, this is it.

This property also has income potential.  You could live in either house and rent out the other. Or, as an investment property, you could rent both. At a list price of $525,000, this house is a great buy.

For a full video tour of the property, check out the video below.

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1) A new heating system was installed throughout the house. The old in-ceiling radiant heat was ill-conceived and fairly nonfunctional. Therefore, we installed 7 new Myson radiant heaters throughout the home.  This entailed ripping up some flooring, troweling into some of the adobe, and adding a brand new boiler and hot water heater. With three new digital thermostats, the house is now warm and cozy.

2) Additional electrical outlets and cable lines were trowled into the adobe walls and then plastered over.  This brought the house up to date and created a great media room.

3) The bedroom was completely renovated.  A Murphy bed was taken out, and a cove for a real bed was created. The washer and dryer and an armoire were also moved out to create more space.

4) New cabinets were built in the kitchen, and a space was created for the washer and dryer. A concrete countertop was custom made to accommodate the cabinets.

5) The entire interior of the house was painted. The paint certainly needed updating as some of the previous colors really detracted from the homes character.

6) All of the floors were refinished and stained. The same stain was used throughout the house to create continuity between rooms.

7) Little clean up projects happened in nearly every room.  Ceilings and Vigas were oiled, dampers were put on all three fireplaces, and touch ups were performed all over the place.

Check out the video below.

To watch the progress of the entire project, click on any of the links below.  It’s amazing how much has changed in such a short amount of time!

Part 1

Part 2

Part 3

Part 4

Part 5

Worried that you will now go through withdrawal from a lack of updates on the house?  Don’t despair, we are planning on continuing posts that follow the furnishing and decorating of the house.  Currently, drapes are being made, a bed is being fabricated, chairs and a sofa are on order, and all of our eyes and ears around Santa Fe are looking for some great vintage pieces to fill the space. Updates may be a bit less frequent, but we’ll keep you in the loop.  Until then, Cheers!

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