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!

In 1921, Applegate came to Santa Fe, devoting himself to painting. His house was on Camino del Monte Sol, in line with the adobe huts built by Los Cinto Pintores, Mruk, Bakos, Nash, Ellis, and Shuster. His home is one of the historic highlights of the area. He was actually close friends with the designers and architects and sometime financial helper, whatever that means. His home is a historic treasure.

He became a member of the New Mexico Painters society in 1923, exhibiting extensively. He wrote “Indian Stories from the Pueblos” in 1929.

Actually, one of the biggest reasons I live and work in Santa Fe is the climate. I just love it. Santa Fe has cool winters and warm summers. The average temperature can get as low as 14°F and as high of 40°F in winter. Snow is possible in the winter, too, but not overwhelming. In the summer temperatures range from a low of 55°F to a high of 86°F. Rain is moderate.

The surrounds are visually spectacular, too. Bright, sunny days characterize most of the year because Santa Fe is around7,000 feet above sea level. Still considered a desert city, nights are cool year round. This means my family and I spend a lot of time outdoors and this is a terrific place for people as active as we are. Santa Fe, New Mexico has it all for us and I recommend it for everyone!

I recommend he Borrego-Bear Wallow Loop in the Santa Fe National Forest, Hyde Park Rd. Aim for the mountains above Santa Fe on this well signed 4 mile loop the is just minutes from town. Shepherds once brought sheep to market along the ponderosa pine lined route but now it’s frequented by locals and their dogs. Begin on Borrego, then cross Big Tesuque Creek by an aspen ringed meadow. Head downstream along the Winsor Trail to the Bear Wallow Trail, where another stream crossing kicks off the climb back to the car.

According to Friday’s report from the U.S. Commerce Department, construction of new homes rose 3.6 percent in June compared to May. Building permits climbed 8.7 percent, and single-family home starts jumped 14.4 percent to 470,000, after rising 5.9 percent in May.

In real numbers, ground was broken for an estimated 58,300 houses nationwide in June, and an estimated 58,400 building permits were issued.

Here’s a look at housing starts in different U.S. regions:

• Midwest: up 33.3 percent
• Northeast: up 28.6 percent
• South: down 1.4 percent
• West: down 14.8 percent

Source: The Wall Street Journal, Jeff Bater (06/17/2009)

The days are warm, the nights crisp, and the mountain sides golden as the aspens turn beneath clear skies. On the edge of the Sangre de Cristo Mountain range, Santa Fe is the perfect spot for fall leaf viewing and recreation.

Getting outdoors is easy and only a short drive from downtown. My favorite trailheads are at the Dale Ball Trail system in and around Hyde Memorial State Park.

I also find excellent leaf viewing from Ski Santa Fe, that operates a chairlift during the height of fall color viewing. With the best views on the mountain, the chair runs at a leisurely pace through aspens and conifers, finally stopping at the top.

Perhaps I’ll see you there on the weekend as a refreshing pause from your home for sale searches in nm.

This is luxury living in the Heart of Las Campanas. This is the last of the Casita lots being built by Woods Builders. This spectacular home is sited directly overlooking the first fairway of the Sunrise Golf includes Equity Social Membership.

This unique location, in particular, offers the convenience of walking distance to the Hacienda clubhouse and the Spa and Tennis Center. Price includes Equity Social Membership. I don’t think it gets any better than this. The amenities are superb and you can see more on Santa Fe Lake Luxury Living favorite.

Santa Fe Lake Luxury Living. Click Here To View