Market Update Q1, Q2 & Q3 2013
A BRIEF SUMMARY OF THE MARKET
As reported in earlier Market Updates, the $1,000,000+ segment in Santa Fe has continued to improve. The number of closed sales is now up 15% over this same period last year. This is a vast improvement from the previous 2 quarters. This segment of the market has now surpassed the other market segments, with the up to $500,000 segment up 5% from last year, and the $500,000 to $1,000,000 segment flat as compared to last year. Our recovery has been much less dramatic than in many other part of the US, but we are now seeing stability that we haven’t seen for over 5 years.
Anecdotally, we are also seeing greater activity in general, although buyer activity changes significantly from one week to the next. We have also seen a leveling of the listing inventory, especially in the $750,000 and above segment. The number of properties available in this segment is almost identical to the number available last year at this time. We have also seen our median price increase 5% over last year and our average price is up 1%. This is after decreases over the past several years. Again, the numbers are not dramatic, but the trend-line is once again positive.
Some interesting information about activity levels…as of the time of this writing, there are 231 residential properties on the market in Santa Fe County priced at or above $1,000,000. Of these, 13 have purchase contracts. Of the 13, 3 have listing prices at or above $2,000,000. Nine are priced at less than $1,300,000. Between $750,000 and $1,000,000 there are 170 properties on the market. Of these, 10 have purchase contracts. We have a relatively small market as you consider the upper price ranges, and these numbers demonstrate this dynamic.
Santa Fe is definitely poised for continued improvement. Home and land prices remain very attractive to buyers, interest rates remain attractive, although above recent historic lows, and the financial markets have been very friendly for a growing number of months. And many of Santa Fe’s most reliable feeder-markets are enjoying strong economies, giving those interested in purchasing in Santa Fe the confidence and resources to move ahead with their plans.
Neil D. Lyon