First Day in Bright New Railyard Digs Draws Crowd of Growers and Shoppers

Finding dried herbs, fresh vegetables and fragrant floral arrangements at the Santa Fe Farmers Market is the norm. Finding the market inside a bright, airy building with a bathroom hasn’t been, until now.

Tuesday was the first day that the growers market — nomadic for the past several decades — was held in its brand-new building in the Railyard.

The market hall is about 10,000 square feet of spare, concrete-floored space brightened by skylights. Eight open garage doors let in air and allow visitors to circulate, patronizing vendors inside and out.

“I love it,” said Ross Bird, 49, who has sold at the market for 12 years.

Bird travels from Estancia twice a week to sell tomatoes. His other family members man stalls in several smaller markets in Albuquerque. But Bird said the Santa Fe market is bigger and more lucrative than those. And that, he said, is thanks in part to the regular customers. Bird said Tuesday’s market attracted about three times as many people as the Tuesday market has in the past.

Salvador Corona, 42 — who has sold the vegetables he raises in Española at the Santa Fe Farmers Market for about 12 years — was one of several vendors who set up outside the main hall Tuesday because there was not enough room inside when he got there at 6:40 a.m.

“It’s a beautiful space,” said George Gundrey, executive director of the Santa Fe Farmers Market. “We are thrilled to death. But we are still a little tight.”

The building has about 25,000 square feet. But only about 10,000 of that is market space. Sarah Noss, director of the Farmer’s Market Institute (the fundraising arm of the market), said rents on the rest of the space — which will house offices and a restaurant — are needed to help pay for the building. Though the farmers market had traditionally operated outdoors, Noss said, the city required the construction of a structure as part of the land lease on the property.

Gundrey said when ongoing construction around the new building is completed — it is hoped by next Saturday — there will be space for about 106 stalls in the market, about half of them in a shaded area along the tracks or in an open plaza north of the building.

About 30 vendors were inside Tuesday. But Gundrey said when the side doors are closed in the winter, the hall will be able to accommodate about 50 vendors. Noss said the farmers market wants to encourage farmers to start growing more produce in greenhouses so they can have a stable year-round income.

About 160 sellers regularly set up at the market, Gundrey said. About 90 of them have reserved spaces. Vendors pay $20 to $35 each for their spaces.

Vendor Bill Althouse — who drives his wild strawberries and giant dahlias to market in a soybean-powered limousine he claims once belonged to Ferdinand Marcos — said the indoor space gives his flowers a longer shelf life.

“Last Tuesday (when the market was located in a parking lot off Old Pecos Trail), I was set up on an anthill,” joked Doug Findley, proprietor of Heidi’s Raspberry Farm jams, demonstrating how he’d had to shore up his table and stomp his feet all day to compensate.

“It has good light,” said M.J. Malmud, 60, who has been bringing her garlic oil to the market for well over a decade. “It’s not claustrophobic. It has good flow. Parking has been a problem, but if we just stay patient, it will work out.”

Parking was the one issue nearly everyone complained about. The Tuesday market is traditionally less crowded than the Saturday market, but confused motorists cluttered the streets around the market Tuesday. Gundrey said about 900 parking spaces are in the Railyard area (including street parking and a lot across Paseo de Peralta behind Warehouse 21), but because some of it is new, people might not know where to go.

The best place to park for Saturday markets, Gundrey said, will be in the undergound parking lot at the end of Camino de la Familia across the tracks from the market.

But unlike previous locations — such as the Public Employee’s Retirement Association building and the DeVargas Center parking lot — little of the parking is close. “When somebody buys 25 to 30 pounds of groceries, they don’t want to lug it that far,” Bird said. He suggested the market administration might want to start a valet or shuttle service to help customers trundle produce to their cars.

Good idea, said Gundrey. “Let’s get a bunch of kids to do it for tips!”

Helen Chantler, a longtime customer of the market, put the problem in perspective as she shouldered a box of tomatillos on the way to her car. “We’ve always had trouble with parking — this is nothing new,” she said. “We just got spoiled there at the PERA before the end. But I’m just happy we have such a great farmers market and people cared enough to do something like this.”

The building cost about $4.4 million. Noss said more than half the money raised for the project was donated by the community. “The community support has been financial as well as emotional,” she said. “I’m really proud.”

 
McLEAN, VA - Freddie Mac announced that its Conventional Mortgage Home Price Index (CMHPI) Purchase-Only Series registered a modest 0.4 percent annualized decline in U.S. home values during the second quarter of 2008, following a downward revised 10.8 percent annualized drop in the first quarter. Over the four quarters ending with the second quarter of 2008, home sales prices fell an average of 6.0 percent in the CMHPI Purchase-Only Series - the largest annual fall in values over the 39-year history of the series.

“While U.S. home value indexes continued to decline, an encouraging sign has been the significant moderation in the rate of decline of the Purchase-Only series,” said Frank Nothaft, Freddie Mac vice president and chief economist. “After falling sharply over the prior two quarters - more than a 10 percent annualized drop - home value depreciation slowed substantially to only a 0.4 percent annualized rate. While we expect to see further declines in average U.S. home values throughout this year and into 2009, we will be watching for signs of stabilization in indicators of real housing activity, such as a leveling off in home sales and for-sale inventories.

“Another good sign was that home values in some parts of the U.S. have remained stable or edged up. Most areas in the West South Central region (Arkansas, Louisiana, Oklahoma and Texas) experienced price gains over the quarter and the past year.”

Thirteen states registered price gains over the past year, and 33 states had increases in the second quarter, according to the CMHPI Purchase-Only Series. Modest annual price gains of 2 percent or more occurred in North Carolina, North Dakota, Oklahoma, South Dakota, Texas and West Virginia which have benefited from stronger local economies. Annual drops of more than 10 percent occurred in Arizona, California, Florida, Michigan and Nevada, which have experienced either weak local economic conditions or overbuilt markets.

The CMHPI Purchase-Only Series excludes all refinancings in its calculation. Freddie Mac also produces a CMHPI Classic Series that includes data from both home purchase transactions and mortgage refinancings, with the latter values based on appraisals. The Classic Series tends to lag changes in the Purchase-Only Series because of the inclusion of refinanced loans. The CMHPI Classic Series indicated that home values fell 7.3 percent nationally during the second quarter on an annualized basis, the steepest quarterly decline since 1971. Over the year ending with the second quarter, home values depreciated 2.9 percent on average in the Classic Series, the first annual drop in this index over the 39 years spanned by the series.

The Conventional Mortgage Home Price Index (Purchase-Only) Series shows the following regional performances:

West South Central Division (AR, LA, OK, TX): rose 1.7 percent (7.0 percent, annualized) in the second quarter of 2008. Over the last 12 months, home values increased 1.6 percent, and during the last five years, home values increased 27.3 percent.

 
Middle Atlantic Division (NJ, NY, PA): decreased 0.5 percent (-2.2 percent, annualized) in the second quarter of 2008. Over the last 12 months, home values decreased 2.6 percent, and during the last five years, home values increased 38.8 percent.

 
East South Central Division (AL, KY, MS, TN): increased 1.7 percent (7.0 percent, annualized) in the second quarter of 2008. Over the last 12 months, home values decreased -0.2 percent, and during the last five years, home values increased 26.7 percent.

 
East North Central Division (IL, IN, MI, OH, WI): increased 1.8 percent (7.5 percent, annualized) in the second quarter of 2008. Over the last 12 months, home values decreased 4.0 percent, and during the last five years, home values increased 8.5 percent.

 
Mountain Division (AZ, CO, ID, MT, NM, NV, UT, WY): decreased 0.6 percent (-2.6 percent, annualized) in the second quarter of 2008. In the last 12 months, home values decreased -5.6 percent; during the last five years, home values increased 39.5 percent.

 
West North Central Division (IA, KS, MN, MO, ND, NE, SD): increased 1.9 percent (7.7 percent, annualized) in the second quarter of 2008. Over the last 12 months, home values increased -2.3 percent; over the last five years, home values increased 15.8 percent.

 
South Atlantic Division (DC, DE, FL, GA, MD, NC, SC, VA, WV): decreased 0.3 percent (-1.0 percent, annualized) in the second quarter of 2008. Over the last 12 months, home values decreased 5.5 percent, and during the last five years, home values increased 33.7 percent.

 
New England Division (CT, MA, ME, NH, RI, VT): increased 0.3 percent (1.2 percent, annualized) in the second quarter of 2008. Over the last 12 months, home values decreased 5.1 percent, and during the last five years, home values increased 18.1 percent.

 
Pacific Division (AK, CA, HI, OR, WA): decreased 5.4 percent (-19.7 percent, annualized) in the second quarter of 2008. Over the last 12 months, home values decreased 11.4 percent, and during the last five years, home values have increased 48.1 percent.

 
Home-Price Drops Slow in Big Cities; Phoenix Hit Hard

Home prices are improving in some parts of the country but still falling sharply in places like Phoenix, as the weak housing market and shaky consumer confidence continue to weigh on the U.S. economy.

“We’re starting to see some hopeful signals in parts of the country,” said Nigel Gault, chief U.S. economist at Global Insight, a Lexington, Mass.-based forecasting firm.

On a monthly basis, home-price declines in the nation’s largest cities slowed in June, according to the S&P/Case-Shiller home-price indexes released Tuesday. Prices fell 0.6% on average from the month before after falling by 1% in May. The June performance was a marked improvement from monthly drops of 2% to 2.5% that occurred earlier this year.

But prices are still much lower than they were a year ago. Home prices in 10 major metropolitan areas in June fell 17% from the year before, though the declines appear to be moderating. The broader 20-city index showed similar patterns. A separate gauge of home prices by the Office of Federal Housing Enterprise Oversight, which covers more of the country but only tracks mortgages backed by Fannie Mae and Freddie Mac, found home prices were unchanged in June from the month before.

Nine of the 20 metropolitan areas tracked by the S&P/Case-Shiller index posted monthly price gains in June. They included Denver, where prices grew 1.5%, and Boston, where prices rose 1.2%. Phoenix, meanwhile, was the worst performer last month; prices fell 2.6%. Prices also fell sharply in Miami, Las Vegas and Los Angeles.

“Prices are still falling very steeply in the areas that got most overheated and further declines will be necessary in those regions for sure,” Mr. Gault said.

Meanwhile, aggressive price-cutting by homebuilders and a severe pullback in construction of new homes over the past year is beginning to stabilize new-home sales, which make up about 15% of the total market.

Sales of new homes rose by 2.4% in July to a seasonally adjusted annual rate of 515,000 units after falling to a revised, 17-year low in June, the Commerce Department said Tuesday. The inventory of unsold homes declined for the second month in a row, to 10.1 months’ supply at the current sales pace. Still, the number of unsold homes remains at historically high levels.

“There’s still a big overhang of homes on the market that need to clear,” said Lehman Brothers economist Michelle Meyer.

On Monday, the National Association of Realtors reported that there was an 11.2 months’ supply of previously-owned homes for sale last month, compared to about a six-month supply that usually accompanies healthy housing markets. Sales of previously-owned homes make up about 85% of the market and have been hampered by a flood of foreclosed properties that’s expected to continue through next year.

Economists caution that home sales and prices may have worsened in recent weeks as mortgage conditions have tightened, lending rates have risen, and concerns about the solvency of Fannie Mae and Freddie Mac have intensified.

Separately, a gauge of consumer confidence produced by the Conference Board, a New York-based research group, shows consumers remain worried about current economic conditions, a sign their spending may continue to slow.

The overall index rose five points this month to 56.9 following levels of 51.9 in July and 51 in June, which was the lowest since 1992. The brighter outlook is largely attributed to the decline in gas prices since mid-July. Nevertheless, consumers’ assessment of current conditions declined, and the percentage of those describing jobs as “plentiful” dropped for the seventh month in a row.

As a result, Lehman Brothers economists expect consumer spending, the largest driver of U.S. economic growth, to be flat during the July-through-September period and then to decline through the first part of next year, the first such decline in consumption since the 1990-91 recession.

 
Existing-home sales rose from the first quarter in 13 states, largely from buyers responding to discounted home prices, according to the latest quarterly survey by the NATIONAL ASSOCIATION OF REALTORS®.

Nearly one-quarter of metropolitan areas showed rising home prices in the second quarter from a year ago, with greatly mixed conditions continuing around the country.

In the second quarter, 35 out of 150 metropolitan statistical areas 1 showed gains in median existing single-family home prices from the second quarter of last year, while 115 had price declines. NAR’s track of metro area home prices dates back to 1979.

NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said foreclosures are distorting the price data. “In many areas with large concentrations of foreclosure sales, homes are being purchased below replacement cost values,” Gaylord said. “Many buyers with long-term expectations are getting exceptional value in the current market. Once the inventory is drawn down, price pressure will return because the costs of construction are rising - today’s buyers are very well positioned to build wealth over time.”

A separate recent study by the National Bureau of Economic Research, “Housing Supply and Housing Bubbles,” shows construction costs in 2007 were higher than home prices in 33 out of 79 metro areas studied.

Because foreclosures and short sales are accounting for about one-third of transactions, there is a downward pull to the national median price. In the second quarter, the median existing single-family home price was $206,500, down 7.6 percent from the second quarter of 2007 when it was $223,500. The median price is where half of the homes sold for more and half sold for less.

A Closer Look

Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate of 4.91 million units in the second quarter, down 0.8 percent from 4.95 million units in the first quarter, and were 16.3 percent below a 5.87 million-unit pace in the second quarter of 2007.

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage rose to 6.09 percent in the second quarter from 5.88 percent in the first quarter; the rate was 6.37 percent in the second quarter of 2007.

Lawrence Yun, NAR chief economist, said a clear cause-and-effect response has developed in the housing market.

“The biggest home-sales gains over the previous quarter have been in some of the markets with the steepest and fastest price drops,” Yun said. Compared with the first quarter, existing-home sales increased 25.8 percent in California, 25.0 percent in Nevada, 20.5 percent in Arizona and 10.1 percent in Florida. “Buyers in these areas are responding to deeply discounted home prices.”

The largest sales gain during the second quarter was in Idaho, up 51.7 percent; Virginia sales rose 10.5 percent.

The steepest declines in single-family home prices in the second quarter were in the Sacramento-Arden-Arcade-Roseville area of California, where the median price of $229,500 dropped 35.6 percent from a year ago, followed by Cape Coral-Fort Myers, Fla., at $178,100, down 33.1 percent from the second quarter of 2007, and Riverside-San Bernardino-Ontario, Calif., where it dropped 32.7 percent to $265,200. “Each of these areas has seen a strong buyer response in recent months to the big cuts in home prices,” Yun said.
Sharp price declines, in excess of 20 percent, also were reported in the Los Angeles-Long Beach-Santa Ana area; the Anaheim-Santa Ana-Irvine, Calif., area; Las Vegas-Paradise; and Phoenix-Mesa-Scottsdale.

“Areas with affordable housing and healthy local economies continue to see price growth,” Yun said. In the second quarter, the largest single-family home price increase was in the Yakima, Wash., area, where the median price of $162,300 rose 8.9 percent from a year ago. Next was the Binghamton, N.Y., area, at $120,900, up 8.7 percent from the second quarter of 2007, followed by the Amarillo, Texas, area, where the second-quarter median price increased 7.2 percent to $124,600.

Yun said home price conditions reflect comparisons from 12 months ago. “Prices having fallen sharply and quickly in very distressed markets, but most or all of the price declines may have already occurred in these areas since buyers have now returned to those markets,” he said. “Furthermore, the momentum of buying is likely to continue in light of the housing stimulus package that was recently enacted. About 2.5 million first-time buyers are expected to take advantage of the $7,500 tax credit between now and the middle of next year.”

Median second-quarter metro area single-family home prices ranged from a very affordable $71,700 in the Youngstown-Warren-Boardman area of Ohio and Pennsylvania, to nearly 11 times that amount in the San Jose-Sunnyvale-Santa Clara area of California, where the median price was $755,000. The second most expensive area was San Francisco-Oakland-Fremont, at $684,900, followed by Honolulu at $636,000.

Other affordable markets include Elmira, N.Y., at $76,400, and the Saginaw-Saginaw Township North area of Michigan with a second-quarter median price of $80,300.

In the condo sector, metro area condominium and cooperative prices - covering changes in 54 metro areas - showed the national median existing-condo price was $220,000 in the second quarter, down 3.0 percent from $226,900 in the second quarter of 2007. Seventeen metros showed annual increases in the median condo price and 37 areas had price declines.

The strongest condo price increases were in the Syracuse, N.Y., area, where the second quarter price of $144,900 rose 17.8 percent from a year earlier, followed by the New Orleans-Metairie-Kenner area of Louisiana, at $192,100, up 15.9 percent, and the Houston-Baytown-Sugar Land area of Texas, where the median condo price of $141,100 rose 9.9 percent from the second quarter of 2007. Areas where condo prices declined mirrored the pattern seen with single-family homes.

Metro area median existing-condo prices in the second quarter ranged from $107,500 in the Wichita, Kan., area to $523,500 in the San Francisco-Oakland-Fremont area. The second most expensive condo market reported was Honolulu at $330,000, followed by Los Angeles-Long Beach-Santa Ana at $327,800.

Other affordable condo markets include Greensboro-High Point, N.C., at $109,600 in the second quarter, and the Indianapolis area at $113,500.

Across the Region

Northeast: The median existing single-family home price fell 9.6 percent to $269,000 in the second quarter from the same period in 2007. After Binghamton, the strongest price increase in the Northeast was in Elmira, N.Y., up 6.6 percent from the second quarter of 2007, followed by Buffalo-Niagara Falls, N.Y., with a median price of $108,200, up 4.7 percent.

Midwest: The median existing single-family home price in the Midwest declined 0.9 percent to $161,500 in the second quarter from the same period in 2007. The strongest metro price increases in the Midwest were in the Decatur, Ill., area, where the median price of $94,200 was 6 percent higher than a year ago, and Des Moines, Iowa, at $156,600, also up 6.0 percent, followed by Peoria, Ill., at $124,800, up 3.7 percent from the second quarter of 2007.

South: The median existing single-family home price was $177,000 in the second quarter, down 4.1 percent from a year earlier. After Amarillo, the strongest price increase in the South was in the Charleston, W.V., area, at $136,600, up 7.1 percent from a year ago, followed by Corpus Christi, Texas, with a 6.2 percent gain to $144,400, and Greenville, S.C., at $160,300, up 5.1 percent.

West: The median existing single-family home price was $290,600 in the second quarter, which is 17.4 percent below a year ago. After Yakima, the strongest metro price increase in the West was in the Salt Lake City area, at $234,200, up 0.5 percent from a year ago; all other metro areas reported for the West were down from the second quarter of 2007.

 
Home prices are improving in some parts of the country but still falling sharply in hard-hit places like Phoenix, as the weak housing market and shaky consumer confidence continue to weigh on the battered U.S. economy.

“We’re starting to see some hopeful signals in parts of the country,” said Nigel Gault, chief U.S. economist at Global Insight, a Lexington, Mass.-based forecasting firm.

On a monthly basis, home-price declines in the nation’s largest cities slowed in June, according to the S&P/Case-Shiller home price indexes released Tuesday. Prices dipped 0.6% on average from the month before after falling by 1% in May. The June performance was a marked improvement from monthly drops of 2% to 2.5% that occurred earlier this year.

But prices are still much lower than they were a year ago. Home prices in 10 major metropolitan areas in June fell 17% from the year before, though the declines appear to be moderating. The broader 20-city index showed similar patterns. A separate gauge of home prices by the Office of Federal Housing Enterprise Oversight, which covers more of the country but only tracks mortgages backed by Fannie Mae and Freddie Mac, found home prices were unchanged in June from the month before.

Seven of the 20 metropolitan areas tracked by the S&P/Case-Shiller index posted monthly price gains in June. They included Denver, where prices grew 1.5%, and Boston, where prices rose 1.2%. Phoenix, meanwhile, was the worst performer last month; prices fell 2.6%. Prices also fell sharply in Miami, Las Vegas and Los Angeles.

“Prices are still falling very steeply in the areas that got most overheated and further declines will be necessary in those regions for sure,” Mr. Gault said.

Meanwhile, aggressive price-cutting by homebuilders and a severe pullback in construction of new homes over the past year is beginning to stabilize new-home sales, which make up about 15% of the total market.

Sales of new homes rose by 2.4% in July to a seasonally adjusted annual rate of 515,000 units after falling to a revised, 17-year low in June, the Commerce Department said Tuesday. The inventory of unsold homes declined for the second month in a row, to 10.1 months’ supply at the current sales pace. Still, the number of unsold homes remains at historically high levels.

“There’s still a big overhang of homes on the market that need to clear,” said Lehman Brothers economist Michelle Meyer. On Monday, the National Association of Realtors reported that there was an 11.2 months’ supply of previously owned homes for sale last month, compared to about a six-month supply that usually accompanies healthy housing markets. Sales of previously-owned homes make up about 85% of the market and have been hampered by a flood of foreclosed properties that’s expected to continue through next year.

Economists caution that home sales and prices may have worsened in recent weeks as mortgage conditions have tightened, lending rates have risen, and concerns about the solvency of Fannie Mae and Freddie Mac have intensified.

Separately, a gauge of consumer confidence produced by the Conference Board, a New York-based research group, shows consumers remain worried about current economic conditions, a sign their spending may continue to slow.

The overall index rose five points this month to 56.9 following levels of 51.9 in July and 51 in June, which was the lowest since 1992. The brighter outlook is largely attributed to the decline in gas prices since mid-July. Nevertheless, consumers’ assessment of current conditions declined, and the percentage of those describing jobs as “plentiful” dropped for the seventh month in a row.

As a result, Lehman Brothers economists expect consumer spending, the largest driver of U.S. economic growth, to be flat during the July-through-September period and then to decline through the first part of next year, the first such decline in consumption since the 1990-91 recession.

WASHINGTON — Existing-home sales climbed in July, rising more than expected, but inventories expanded and prices kept dropping.

Home resales rose to a 5.00 million annual rate, a 3.1% increase from June’s revised 4.85 million annual pace, the National Association of Realtors said Monday. June originally was seen slipping 2.6% to 4.86 million.

The median home price was $212,400 in July, down 7.1% from $228,600 in July 2007. The median price in June this year was $215,100.

Falling prices are restraining sales, as would-be buyers wait for a better deal instead of signing on the dotted line. High inventories are driving down prices. Prices must fall further for inventories to recede. Analysts say inventories have a good distance to drop for a signal that price deflation is nearing an end.

Despite the sales increase, inventories of homes rose 3.9% at the end of July to a record-high 4.67 million available for sale, which represented an 11.2-month supply at the current sales pace. There was an 11.1-month supply at the end of June.

“Inventories continue to remain high, which means we are in a buyers’ market,” NAR economist Lawrence Yun said. “Builders need to continue to cut production more.

“We expect more balanced conditions in 2009 and will eventually return to normal long-term appreciation patterns,” Mr. Yun said.

Mortgage liquidity is drying up, which is what the results this month of a Federal Reserve survey suggest. Lenders continued in the second quarter of 2008 to tighten their standards on home loans, the Fed’s latest quarterly survey of senior loan officers at U.S. banks showed — signaling the credit crunch hasn’t let up. About 75% said they tightened standards on prime mortgages, up from 60% in the previous survey, released in May.

Aside from tighter loan standards and prices falling under the weight of bloated inventories, a weakening job market hasn’t helped the housing market. The key non-farm payrolls number in the government monthly report on employment has gone down seven times in a row.

The July resales level of 5.00 million reported Monday by NAR was above Wall Street expectations of a 4.92 million sales rate for previously owned homes. The sales level was the highest since 5.03 million in February.

The average 30-year mortgage rate was 6.43% in July, up from 6.32% in June, according to Freddie Mac.

Sales rose 5.9% in the Northeast, 0.9% in the Midwest, and 9.7% in the West. Sales fell 0.5% in the South.

August is the month for Haciendas: A Parade of Homes, Santa Fe’s annual, self-guided tour of new and remodeled homes. It’s a great opportunity to check out the quality of what’s on the market.

Green building is more and more important.

“Last year the Parade builders who wanted to be judged in the green category had to fill out a basic checklist that’s part of the guidelines from the National Association of Home Builder,” said Cheri Johansen, marketing director Santa Fe Area Home Builders Association. “Now in the city every time you get a permit you have to display a Home Energy Rating System (HERS) rating on the house, and that’s the basis for our Green Awards category this year.”

Judging is an important part of Parade for the builders, and the new emphasis on green building shows in the fact that, for this category, the association has a judge for each of seven components identified by local green-building experts.

“HERS is an index,” Johansen said. “Basically zero energy is where we all want to go and 100 is the American standard conventional home. We’ve been working with the city on code for all new homes inside the city to achieve HERS 70. Once upon a time Santa Fe was ahead of everybody and now I think we’re going there again.”

The 2008 tour features more houses than usual inside the city limits, which she attributes to a recent boost in infill projects.

Every builder in this slumping market is taking a chance building a spec home. “I think a lot of our builders are saying they have to get their homes out there,” Johansen said. “Marketing is very important right now. We always time the Parade to coincide with Indian Market, and I believe there are many people who make their vacation plans so they can go to Indian Market in the morning and the Parade in the afternoon.”

The tour dates are Aug. 15-17 and Aug. 21-24. Homes are open Fridays, Saturdays, and Sundays from 11 a.m. to 6 p.m. and from 11 a.m. to 9 p.m. on Thursday, Aug. 21, when selected homes remain open late.

Tickets for the whole tour are $15 and are available at all Parade homes and at the Lensic box office, 988-1234.

The Wall Street Journal 

Mortgage rates moved lower this week, according to Freddie Mac’s weekly survey.

The 30-year fixed-rate mortgage averaged 6.47% nationally in the week ended Thursday, down from 6.52% last week. The mortgage also averaged 6.52% a year ago. The 15-year fixed-rate mortgage averaged 6% this week, down from 6.07% last week. The mortgage averaged 6.18% a year ago.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 5.99%, down from last week’s 6.02%. The ARM averaged 6.34% a year ago. One-year Treasury-indexed ARMs averaged 5.29%, up from 5.18% last week. The ARM averaged 5.60% a year ago.

“Even with the current historically affordable mortgage rates, news continues to show signs of weakening in the housing sector,” said Frank Nothaft, Freddie Mac chief economist. “Housing starts fell to 0.965 million units [annualized] in July, the slowest pace since March 1991. As a result, home-builder confidence remained at an all-time record low in August since the series began in January 1985.”

Housing starts and building permits also tumbled in the latest data.

Next week, house-price indexes from S&P/Case-Shiller, the Office of Federal Housing Enterprise Oversight and Freddie Mac will be released, which may provide signs “of whether home prices may be slowing their descent as recent monthly indices have shown or whether the observed deceleration was temporary,” he said.

Mortgage-application volume was down 1.5% last week, according to a separate report from the Mortgage Bankers Association.