Having just completed the first month of 2012, it is encouraging to see that residential absorption rates have continued to improve across all price ranges.  This means that it takes fewer months for a home to sell (provided it is priced properly, etc.), compared the past several years.  At its worst, the absorption rate for all price ranges was at 23.47 months in June of 2009.   At the end of January 2012, this rate had dropped to 12.37 months.     

As always, however, it is crucial to parse data for a clearer picture as the absorption rates vary widely depending on price range.  The best news is with homes priced under $500,000.  This absorption rate has fallen from a high of 17.48 months in June 2009 to 10.22 months at the end of January.  The rate for homes priced over a million dollars has improved; however, there is still a significant time headwind.  At the peak in September of 2009, the absorption rate for home over $1,000,000 was 57.85 months.  Now it is down to 27.49 months. 

Since the number of sales has not increased significantly, the reduction of the number of homes for sale indicated properties are being sold and fewer people are putting their homes on the market.  We do expect inventory to increase over the next few months as spring, summer, and fall are our best selling seasons. Yet, as inventory rises and sales rise seasonally, we do not expect a huge change in absorption rates in the short run.

 I hope this information is helpful.  Just let me know if you would like more in-depth detail!

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.

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

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!

If you have any more questions regarding statistics or reports for Santa Fe, don’t hesitate to contact me!

Yesterday, the Santa Fe Team just released one of our new services – up to date market reports for Santa Fe!  We are very excited about this new service and hope that it will help all of our clients understand the Santa Fe real estate market, how it is changing, and to be able to better predict how it will continue to change in the coming months and years.  Above is an example of one of the many different kinds of reports that we can now produce. If you are interested in receiving this type of report, please contact me: moo@moothorpe.com .