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October 2006

Is the Sonoita, Elgin Patagonia Real Estate Market Different?

Posted at 11:00 AM, Oct. 28, 2006

Directly or indirectly we are offten asked the above question. The answer is really "yes". The Mountain Empire as this is often called, is still predominently ranch land. It is perceived as being rural, but it is not remote. Sierra Vista, Nogales and Tucson are all within an easy 35 to 60 minute drive. This fact, and because there is a top rated elementary school in Elgin, is bringing younger families into the communities. But how does this relate to the real estate market. Purchasing property here is definitely affected by the desire for buyers to spend or invest. When there is a nationwide feeling, as there is now, that real estate prices are high, buyers tend to retreat from this market as well as any other market. However, our prices do not respond accordingly, particularly vacant land. At the present time there isn't an oversupply of either land or homes in this market. Thus supply and demand forces are fairly well in balance. This is not necessarily good news for potential buyers as prices are not dropping. Conversely, prices are either stable or increasing, with only minor exceptions. The exceptions are those properties which entered the marketplace much too high and now the owners have come to the realization that the only way to attract any buyers in a slow market is to price realistically. Presently, our market seems to be "normal". New listings, predominantly land, appear on the MLS in ones and twos almost daily. Contracts seem to be written several times a week and walk-in traffic is not bad for the non-tourist time of the year. I would imagine that the agents who have been here for a number of years, will end up participating in their usual number of transactions and with their usual income when 2006 concludes. Stay tuned!