Enchanting Elegance
By Roger Grody

Awesome natural beauty, arts and diversity enhance New Mexico's luxury vacation home market. The Land of Enchantment ranks among America's premier vacation home markets, thanks to a number of qualities that are suggested by the state's self-fulfilling nickname. New Mexico offers spectacular Rocky Mountain peaks in the north, and a hauntingly beautiful desert in the south. Santa Fe is among the most vibrant centers of fine art in the nation, Taos offers world-class skiing and burgeoning Albuquerque is emerging as a cosmopolitan metropolis, all with the beauty and mystique of Native American culture as a backdrop.

Paul Johnson of Prudential Taos Real Estate reports people throughout the world fall in love with the city's climate, recreational opportunities and cultural sophistication. He notes the entry point for luxury in Taos is about $700,000, typically netting a traditional Pueblo-style home with 3,000 to 4,000 square feet of living space on a couple acres. In Taos, there were 33 properties on the market listed at $1 million or more at press time, high-end condominiums-a market just beginning to emerge due to demand from downsizing baby boomers-are available for as little as $400,000.

Johnson reports about one-third of his clients are shopping for second or third homes, and while buyers are predominately from the Southwest, Taos draws from as far as New York and Europe. The indigenous Pueblo-style architecture creates genuine value, with Johnson reporting, "If you own a home that looks like it belongs in suburban Albuquerque or L.A., you're going to have a hard time getting it sold."

Prices in Santa Fe, just 65 miles to the south, are significantly higher but there is also substantially more inventory from which to choose. At press time, there were about 330 single-family homes or townhouses available for $1 million or more, including 36 priced in excess of $3 million. For $1 million, a buyer can expect 2,000 to 3,000 square feet on a small lot in the city's historic district, or 3,500 square feet on a couple acres in the outlying areas, according to Jonnalyn Grover of Coldwell Banker Trails West Realty. Santa Fe has long been a favorite vacation destination for Fortune 500 CEOs and there is plenty of luxury to spend their bonuses on, such as a $9.1 million six-bedroom, six-and-a-half-bath contemporary on 10 rugged acres. For $14.5 million, one could cash in his or her stock options for the 2,595-acre Saddleback Ranch, complete with two main residences.

"The luxury market in Santa Fe is showing early strength so far this year, with modest appreciation but volume that is on pace to equal that of record-breaking 2006," reports Grover. The three traditional architectural styles (Pueblo, Northern New Mexico and Territorial) are most in demand, particularly in central Santa Fe, where strict design guidelines are enforced by the city. Grover notes that about a third of the market is driven by second-home buyers, with considerable numbers from California, Chicago, the Northeast and Texas. She also reports a significant up-tick in interest from Japanese buyers.

In Albuquerque, the state's awakening giant, the rapidly emerging luxury market featured approximately 75 $1 million-plus listings at press time, including a 5,200-square-foot home-a contemporary design inspired by Pueblo architecture-listed at $2.3 million. However, Coldwell Banker Legacy Realtors' Cathy M. Olson suggests luxury can be attained for as little as $750,000. She reports a robust high-end market, driven by the arrival of regional corporate executives at the area's burgeoning aerospace, automotive and motion picture industries.

Did You Know?
  • With more than 62 percent of adults holding a bachelor's degree or higher, Los Alamos (35 miles northwest of Santa Fe) is one of America's most highly educated communities.
  • Fortune magazine projected Albuquerque to be the hottest real estate market in the West-and third in the nation-for 2007.