Market Update Q4 2012
A BRIEF SUMMARY OF THE MARKET
After a flurry of activity during the holiday season, we finished last year as expected, based upon the first 3 quarters of 2012. Closed sales in Santa Fe County, at prices less than $1,000,000, increased over 17%, as compared to 2011. Closed sales at prices at $1,000,000 or more decreased by almost 14%, as compared to the prior year. 76% of all sales in 2012 were at prices less than $500,000. 90% of all sales involved properties valued less than $750,000.
Some interesting information about the top-end of the Santa Fe market in 2012: The top ten highest value sales ranged from a high of $4,000,000 to a low of $2,160,000. Four of the ten were achieved while the properties were listed at their original asking prices. One of the ten had one listing price reduction before achieving the sale. Two had two reductions, two had three price reductions and one had six price reductions. The days on market between when the properties were first placed on the market and when the sales closed ranged from 150 days to 2,125 days. In some cases one listing broker was involved; in others as many as four listing brokers were involved before the sales were achieved.
Our activity during the holidays was so much busier than the prior weeks, it caught us by surprise and has caused us to reconsider how 2013 may unfold. The general economic news about real estate sales and new home construction continues to be very positive. The improvements in the national real estate market are expected to play a very significant role in the recovery that appears to be picking up steam. This is truly wonderful news.
One of the biggest challenges we see this year, both locally and nationally, is the drop in the number of available homes relative to past years. The number of homes available in Santa Fe at the end of 2012 was almost 20% less than the number available just one year earlier. We can reasonably expect more properties to come onto the market as we head towards spring, but whether the number of added homes will be enough to satisfy buyers coming into the market will be known only as we get further into the selling season.
Neil D. Lyon