Buyer's Market?

Posted at 9:55 AM, Feb. 10, 2007

Here it is almost the middle of February and winter is behind us. Do you believe that? Do you believe it is a buyer's market in Sonoita, Elgin and Patagonia. Well, winter is not over and it is not really a buyer's market. Is our market different that the rest of the country? Yes, and no. Read on.

Our underlying values are based upon the land values. Since land is generally in short supply due to the large number of ranches and BLM and NFS holdings, the value has a general and steady uptrend. What happens in response to the general economy is the number of buyers actually doing something. So in a hot market like a year or two ago, we have more buyers and more activity. Prices still move in response to supply and demand economics associated with the availability of land. In a slow, or buyer's market, we experience fewer actual buyers.

Currently, we seem to have the normal number of lookers for this season, but contracts are fewer. Prices are steady to up. There is a good selection of land of all sizes and locations, but mostly in Elgin or the two new developments in Patagonia. There is an overabundance of higher priced homes, but there are a number of very nice houses in the under $600,000 price range and even a few under $300,000.

The most significant real estate events recently are: The Short's 580 acres in the crossroads area has sold to a national company. No word on what it will become. And, secondly, the Babocomari ranch announced it will sell off 2,000 acres. Exactly where is not known.

I believe this is the time to buy in our community. Prices are fair and should continue steadily upward. The climate is the best! Come visit us.