The Neil Lyon Group presents the Santa Fe Market Update, for the 3rd quarter of 2014
The Neil Lyon Group is again pleased to send to you the Santa Fe Market Update for the 3rd quarter. You can easily access the Market Update by using the link below.
When you read Gregg Antonsen’s comments on page 2 of the Market Update, you’ll see that he labels our market as “stable”. With many markets around the US experiencing significant increases or decreases in activity, Santa Fe is in a cycle with few highs or lows. What I consider to be the key indicator of our market’s health, the year-to-date number of sales as compared to last year, shows very little change. There have been 74 sales this year-to-date in the $1,000,000+ category. Compare this to 70 for last year. In the $750,000 to $1,000,000 category, the 95 sales this year-to-date is identical to last year’s sales.
What is most curious is the increase in showing activity that we saw during the period when the financial markets were getting pummeled. It didn’t benefit all of our listed properties, but the change was palpable. In past years, we saw increases in showing and buying activity as the markets improved. If the Dow was up in a significant way, we saw an immediate increase in buyer interest. We used to see this on a weekly or even daily basis. To our surprise, we saw a clear uncoupling of market advances and buyer activity during the most recent bull market. And equally unexpected was the new increase in activity as the markets got bashed. No complaints, but it is baffling nevertheless.
Another observation of note: since the 2009 decrease in the median sale price (which was a -10% adjustment), we have seen the median price change very little. In fact the 2014 median price of $293,000 is virtually unchanged (-1%) as compared to the 2009 median price of $297,000. It supports the notion that our market has proven to be very non-volatile in the most recent years.
What has been so attractive to buyers in the past is still attractive today. Santa Fe remains a unique, vibrant and sophisticated community, in spite of our small size and small-town feel. The unexpected precipitation that we received this summer and early fall has been a wonderful gift and the results of it are on full display. Home values are only marginally above where they were a decade ago (3%), interest rates remain very low and lender guidelines are loosening up. The inventory of available homes is up modestly in all price categories. For those who have dreamed of owning a home in our wonderful community, it is really a great time to jump in. We are seeing more activity reflecting this very positive situation for buyers.
My thanks for reading this quarter’s Market Update and I hope you have enjoyed my personal analysis of the contained data about our local real estate market and the contributions made by Vanessa and Michaelene. If we can assist you in any way, please let us know.