Greetings and Happy New Year! We enjoyed a snowy white Christmas in Santa Fe and welcomed the New Year with good skiing and sunny skies. It is encouraging to step into 2012 with more positive national economic news than we have had the past few years, particularly the increases in the number of pending homes over the past few months as well as residential price stabilization across many markets.

We have also been pleased with the resiliency of Santa Fe’s real estate market as seen in the following bits of data:

• The number of residential sales essentially equaled that of 201
• The average sales price rose slightly (the median price was down slightly
• The number of currently listed properties has dropped
• The number of high end sales $1,000,000 + improved over the numbers sold in 2009 and 2010
• The number of homes sold in Las Campanas essentially doubled from 27 homes in 2010 to 50 in 2011
• The number of homes sold in the Historic Eastside is rose back to 2008 levels
• The absorption rates in all price ranges, while still elevated, have continued to nudge downward, indicating that the time to absorb current inventory has improved.

According to a report by Business Insider, a blog publication for Hanely Wood, Santa Fe is expected to be one of the country’s 15 best housing market’s over the next five years. Being a tried and true Santa Fean, I  know the long term benefits and allure to living in Santa Fe so I am not surprised our market should do well.  Here is a link to the article — I think you will find it intriguing.

For centuries, Santa Fe has been an important desitination and crossroads in the history of the southwest.  Our history spans from the indigenous Pueblo Indians, the Spainards, to the migration of merchants, treasure seekers, and homesteaders from back east.  Throughout this period, as Santa Fe has grown, its changes have been reflected in its housing and architecture which are truly unique in the United States.   As an example of how lucky we are, I wanted to share with you a blog post on historic homes that our Sotheby’s team put together for us. Just click on this link to read:  http://santafesir.com/featured-properties/10-historic-homes-in-one-of-the-nations-oldest-cities.   Enjoy!

Santa Fe, New Mexico -  A Retirement Haven  -  As Reported in Smart Money Magazine

In a recent Smart Money article by Cathy Hill, Santa Fe, New Mexico was chosen as an underrated retirement jewel that is “relatively affordable, delightful, and full or opportunities to work and play.”   Of course, those of us that live here already know the secret and are delighted the word is getting out!    As for relatively affordable, Santa Fe real estate is full of  amazing values with prices down to levels not seen since the late 1990′s in many cases.  From vacation condominiums to historic Santa Fe style estates, this is a great time to buy!

To read the Smart Money article click here

November 8th, 2011

After a somewhat sluggish pace of sale this summer, residential sales in Santa Fe have outpaced last year’s sales in both October and September by 13% in September and 27% in October. It appears that buyers held back through out the gloomy economic news and budget deficit talks earlier in the season,yet, sentiment seem to shift after labor day with most Santa Fe agents reporting brisker showing and sales activity. If the pace continues, Santa Fe sales for 2011 should match those of 2010 and perhaps surpass that by a smudge. Price is still key and today’s buyers demand value. The properties that sell are those that are priced extremely attractively relative to their competition.

What’s happening with land sales in Santa Fe? Unfortunately, not enough. Inventory levels remain very high and while their was a small uptick in land sales as well the past few months, we are avergaing less than 20 sales/month. Prices in some areas are quite attractive, especially in Las Campanas where good lots are available under $100,000! Unheard of value!

Another week blown out of the water, and a pretty good week after all is said and done. As a company, Sotheby’s put  23 properties under contracts in a variety of price ranges (60 in the entire MLS system), 17 solds with six of those in-house (30 for the entire MLS system), and 21 new listings (77 in the entire MLS system). A  good number of prices changes are still coming in, and there were approximately 400 Sotheby’s showings for the week.  It looks like fall is going to be a strong selling season!

Driving home on a recent (and rare) gray day, my eyes were drawn to vibrant splashes of orange and yellow aspen trees here and there between dark evergreens and gray sky.

Somewhat like those glowing aspens, Santa Fe’s real estate market at the end of the 3rd quarter shows a few bright spots while a fair amount of gray remains.

On the bright side:

There has been a 17% increase in sales year-to-date over 2009.

The bulk of the increase has been in properties priced $500,000 and below due to the first-time home buyer credit as well as record low interest rates.

The number of units sold in the North West sector as well as the Historic Eastside is close to surpassing the number sold for all of 2009.

Activity in showings and sales activity has picked-up nicely since Labor Day after a sluggish summer.

Motivated sellers and low interest rates have produced an incredible buying opportunity.  As is typical for this time of year, serious buyers are in town and have been jumping on fantastic values.  Continue reading here…

Its been a hot summer in Santa Fe and our dog Ellie knows how to handle the heat!   Click here to see how a heeler cools her heels!    http://www.youtube.com/watch?v=8ulC2PCb6wc.   Have a great weekend!

Since January, we’ve enjoyed a steady increase each month (over 2009) in showings, pending sales, and closings.  All this activity resulted in sales totaling 138 in May.  This figure represents the largest single monthly total since November 2007 (146) which means that the May 2010 total was larger than any of the past 29 months. 

Contrasted to the above, we have shifted gears somewhat in the past few weeks.  Showing activity dropped about 9% in May and has remained relatively slow these first few weeks of June.  Some wonder if this is a harbinger of a reversing market trend, or, simply a reflection that early summer is often slow until the summer really gets rolling with The Santa Fe Opera, Santa Fe Chamber Music, Indian Market, and International Folk Market.  

I am in the camp that believes the market is pausing and that Santa Fe’s traditionally strong selling season between July- October will do just fine this summer.  I know I have already seen a pick up in showing activity and calls the past week!

Dear Friends,

We are off to a new year and a new decade with cautious optimism about Santa Fe’s real estate market. Somewhat like the January thaw the past few weeks, our market is showing signs of stability which leads us to believe 2010 will stronger than 2009.

Yes, 2009 proved challenging for Santa Fe sellers as sales volume plunged and sales prices dropped in the neighborhood of 20% +/- depending on location and property type. Discouraging as these trends have been we are happy to report that there are now signs of the market stabilizing:

• Just in the first two weeks in January there have been 42 residential closings compared to last year’s 26 for the same time period.

• Absorption rates (# of months to sell inventory) has declined from its peak in August 2009 and inventory has declined as well. While still far from a balanced market which is thought to be a 6-7 month supply, the average absorption rate for all residential real estate stood at 18.31 months as of 12/31/09. It is important to note, however, that months to absorb inventory varies by price range with the higher prices ranges taking more time to sell.

The following tables show us that large inventories are still favoring buyers:

Below are snapshots of two popular areas that compare 2008 with 2009. In general, properties further out in the county have dropped in price more than those in the heart of downtown.

Unlike the residential market, land sales still remain dismal relative to supply. Builders are no longer purchasing land for spec homes and potential land buyers are finding that they can buy high quality existing homes for less than they could buy land and build. With such inventory overload, it will most likely take years for this market segment to come into balance.

So, with cautious optimism we see 2010 bringing in a more balanced residential market. Buyers still have a great opportunity to purchase homes at tremendous values in a low interest rate environment. Sellers should be seeing an end to their price deterioration and, if relocating, sellers can reinvest at the same attractive levels. The Fed’s extension of its $8,000 first time home buyer credit will continue to nudge the market along as will the creation for the new $6,500 credit for buyers of second and/or vacation homes.

Do we expect gangbuster activity? No, we don’t, yet, after the challenges of 2009, we expect Santa Fe’s charms and attraction will continue steer our market towards a balanced state.

We wish you the best as this new decade gets underway. As always, please consider us a go to resource for questions or concerns you may have!