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The Census Bureau reported that 2.9 percent of U.S. homes or 2.28 million properties, not including rentals, were vacant and for sale. It was the highest quarterly number as far back to 1956 when records of such vacancies were first kept.

The West had the biggest gain in vacancy rates among home owners, rising to 3.2 percent in the January-March period from 2.6 percent in the same quarter a year earlier. Vacancy rates inched up in the Northeast and remained steady in the Midwest and South.

Fannie also told lenders it will increase the period needed for borrowers to re-establish credit history after a foreclosure from four years to five. Fannie said it would allow shorter recovery periods for borrowers with "documented extenuating circumstances" that caused the foreclosure.

In a separate memorandum, Fannie told loan services last week that it could extend forbearance periods on delinquent borrowers to as long as six months to allow borrowers time to find an alternative to foreclosure.

The market share of homes purchased for investment last year was 21 percent, down from 22 percent in 2006, while another 12 percent were vacation homes, compared with a 14 percent market share in 2006.  The total share of second homes declined from 36 percent of transactions in 2006. 

NAR’s annual Investment and Vacation Home Buyers Survey shows vacation-home sales dropped 30.6 percent to 740,000 in 2007 from a record 1.07 million in 2006, while investment-home sales fell 18.1 percent to 1.35 million last year from 1.65 million in 2006.  At the same time, primary residence sales declined 10.0 percent to 4.34 million in 2007 from 4.82 million in 2006.

FHA loan limits for a single family residence in Santa Fe County have been increased from $324,088 to $427,500.

Dick Gaylord, President of the NATIONAL ASSOCIATION OF REALTORS^® states, "We expect the impact of these loan limit increases on the housing market to be significant because of the infusion of capital into the mortgage market, which should result in lower interest rates across the board. In addition, there will be a direct impact on high-cost areas that previously required borrowers to take out costlier jumbo mortgages."

"The stakes are high" said Commissioner Harry Montoya, "The quality of a decision depends on the quality of information received.  We will take the time necessary to obtain and review the relevant data before we decide the next step."  The ordinance also calls for the adoption of amendments to create a special improvement district for the Galisteo Basin and to the Land Development Code that addresses the "health, safety, cultural-historical archaeological, fiscal, economic, planning, infrastructure and services, groundwater aquifer, environmental and public nuisance impacts of such grading, drilling, and extraction."

"This action provides direction" said Commissioner Jack Sullivan, Board Chairman, "The amendment defines our parameters and creates a timeline within which a thoughtful, open, and thorough process can occur."

In the fourth quarter, 73 out of 150 metropolitan statistical areas show increases in median existing single-family home prices from a year earlier, including 11 areas with double-digit annual gains and another 12 metros showing increases of 6 percent or more; 77 had price declines including 16 with double-digit drops.

"The continuing crunch in the jumbo loan market that began in August has disproportionately reduced the number of transactions in higher price ranges," says Lawrence Yun, NAR chief economist. "For buyers who need loans of more than $417,000, mortgage interest rates have been running more than a percentage point higher, and that has been having an obvious impact. Higher ratios of sales for more moderately priced homes are naturally dampening the national median price as well as the data for some of the more expensive markets."

NAR's track of metro area single-family home prices is the largest published series of metropolitan home prices, with data available back to 1979. The metro home price series treats all homes equally, without placing higher weights on more expensive homes as in other home price series.

The disruption in higher priced sales continues to drag down the aggregate national median existing single-family home price, which was $206,200 in the fourth quarter, down 5.8 percent from the fourth quarter of 2006 when the median price was $219,000. The national median normally is a typical market price, where half of the homes sold for more and half sold for less.

NAR President Richard Gaylord says he's encouraged with plans to increase conventional loan limits. 

"Higher limits for FHA loans, which go into effect March 14, will be a big help to first-time buyers in high-cost markets. Higher limits for conventional loans purchased by Freddie Mac and Fannie Mae will take a bit longer - when they become available, high-income, creditworthy borrowers in high-cost areas will have access to affordable and safer financing, and that will help unleash pent-up demand," he says.

"With the market in a state of flux, it's especially important for consumers to stay abreast of widely varying and changing market conditions," Gaylord adds. He says consumers are recommended to take a traditional long-term view, which means taking the time to thoughtfully research the market. 

Despite the annual decline in the fourth quarter median home price, the typical seller who purchased their home six years ago still saw a very healthy gain. The median increase in value for sellers who purchased that home in the fourth quarter of 2001 is 31.2 percent, and the median home equity accumulation is $49,000.

Sperling's Best Places and Businessweek.com in a 2007 Survey named Santa Fe the second best place in the United States for artists and creatives. View the slide show of the top cities. Read why Business Week calls Santa Fe a great place to invest in real estate right now.