Tag Archives: Santa Fe real estate trends

Market moving slowly upward – The Santa Fe New Mexican: Home/Real Estate

By Paul Weideman, The New Mexican | This article was syndicated from The New Mexican, for the original article, Market moving slowly upward – The Santa Fe New Mexican: Home/Real Estate.

The supply of homes for sale in the Santa Fe area was down a significant 8 percent in the 4th quarter compared to a year ago. Barbara Blackwell, 2015 president of the Santa Fe Association of Realtors, said that tightening of inventory has helped to restore “more competitive” prices. “Looking back over the entire year,” she said, “interest rates remained lower than expected, helping to attract buyers. The improved housing affordability coupled with new FHA lending products may entice more new homebuyers to purchase this year.” On the downside — barriers to a greater degree of recovery — are student loan debt, sluggish wage growth and a lack of sufficient mortgage liquidity, according to a year-end report from the association.
Home sales in the City of Santa Fe and Santa Fe County rose by nearly 3 percent in the 4th quarter of 2014 compared to the sales level in the final quarter of 2013. City/county prices rose by 8 percent.

Annual Home Sales

The sheer volume of home sales in the quarter was up nearly 7 percent to $177.6 million. The median house price rose 11 percent in the city, to $310,500; the county median was also enhanced, but by less than 3 percent, ending at $389,000.

 

Land sales were down 15 percent, but prices were up 25 percent.

In short, the 2014 real-estate market continued the pattern of recovery from the late-2000s financial crisis. The price gains were still positive, but less robust than last year, the SFAR report said.

That was also true statewide. “New Mexico housing trends end 2014 slightly ahead of 2013,” was the title of a recent report from the Realtors Association of New Mexico. The state association had 16,916 reported home sales, a 1.2 percent increase over the reported 16,708 sales for 2013 and an 11.4 percent increase over the 2012 figure of 15,182 sales. The median price statewide in 2014 was $175,000, up slightly from 2013’s $173,000.

“These figures indicate the New Mexico housing market is continuing to improve, though at a slower pace than 2013,” said Baro Shalizi, a longtime Santa Fe Realtor who is serving as president of the Realtors Association of New Mexico this year.

What kind of growth will the Santa Fe market experience in 2015? “Indications are for improvement,” said David Dougherty. “It strikes me that the economy, at least nationally, is in an interesting, maybe once-in-a-lifetime situation with very low interest rates, moderate growth, and not deflation but disinflation with lowering gas prices and people having a little more money in their pockets. We still have a lot of supply in housing but I think it is a bit less, which forebodes well, so all we need is demand.”

The extent of job growth resulted in an increase in homebuying confidence, but have banks loosened up on loans? “I don’t see any change there, but I do see people qualifying,” said the principal of Dougherty Real Estate Co. on West San Francisco Street. “There are more people working, people have more disposable income. The feds have helped a little bit with smaller down payments. You can now buy, in certain circumstances, for 3 percent down, so there is a group of buyers that has been added to the market.

“I’m looking more, at least in our market, at the fact that buyers simply have more money. A lot of retirees have 401(k)s and savings that have been bolstered and they’re feeling a little better and they’re willing to take a little more risk and buy a home or second home.

Hasn’t the second-home market slackened in recent years? “What I’m seeing is maybe ‘transitional’ homebuyers. They’re living in Chicago or New York and they haven’t sold their homes yet but they know they’re going to retire and they know they want to come to Santa Fe and in some instances they’re willing to buy here before they sell. They’re going to be shifting their lives to Santa Fe, rather than buying second homes.”

Early in the recession, Santa Fe’s real-estate market wasn’t doing too badly, but it began to be affected by the fact that potential buyers in the “feeder markets” of California, Texas, Illinois, New York, and Florida were unable to sell their homes in order to buy in Santa Fe. “And Santa Fe being the classic contrarian, we now seem to be doing a little better than some other markets, for example Dallas and Houston, which, because of the oil and gas debacle right now, have slowed a lot.”

In another point having perhaps nothing to do with the strength of the market, Dougherty said the vision of homebuyers is changing. “I’m sensing that traditional Santa Fe Style may be a little out of vogue right now. The Eastside is still strong; I still think it’s the strongest part of our market. But when you get to Las Campanas and some other areas, modern, cutting-edge, linear homes seem more to be in favor.”

I asked Julia Gelbart, an associate broker with Santa Fe Properties, if there is still a desire for old-fashioned Santa Fe Style with saltillo tiles and vigas. “There’s always the Santa Fe panache, but I’ve worked with more people who go for the cleanness of contemporary design,” she said. “But whatever a buyer wants, we can find it. There’s enough diversity, in our market, in our prices, in our styles.

“I do open houses almost every Sunday. You meet people from elsewhere who want to talk to someone who lives here and knows the market. I tell them, The next time you come to town, call me and I’ll give you what I call the Santa Fe sampler. Give me your price range and I’ll drive you all over the city and show you the house in that location at that price. For $600,000, for example, you can find houses in so many areas.

“Very few people start out saying they don’t know what they want,” Gelbart said. “They all know what they want. They want to walk to the Plaza. Then the reality sets in. If they want a big gourmet kitchen, a big open floor plan, they’re not going to get that in their price range a block from the Plaza.”

Both home-sales numbers and prices seem to be on the rise. “It depends on which stats you look at, but if the buyers get the houses they’re happy with, they don’t care about the stats. This is a real individual market.

“A lot of the people who contact me are baby boomers and Santa Fe is perfect. We have all four seasons, good medical, and incredible culture considering our population, and so many interesting people.”

In a comment about inventory, Gelbart said many good houses on the market are being overlooked. “Part of it is the time of year and they might not have much curb appeal. But we have to get past that idea. I don’t think many of our houses have good curb appeal — they’re basically brown boxes — but they’re so special when you get inside.”

She thinks 2015 will be a busy year for real-estate brokers in Santa Fe. “I do. Baby boomers are impatient. They want to know what they’re going to do with the rest of their lives, and they’re decision-makers.

“The market has been slow, but it’s been an upward ascent. All of us busy Realtors know that we have people coming in. I already have July booked with buyers who are coming in.”

2013 was a Year of Slow, Steady Progress for Santa Fe

St. Francis Cathedral

St. Francis Cathedral

This article originally appeared in The New Mexican on December 30, 2013 and is syndicated from The New Mexican.

By Bruce Krasnow, The New Mexican, December 30, 2013

Except for the stock market, nothing else bounced in the Santa Fe business community this past year.  But for most entrepreneurs, job seekers and homebuyers, 2013 was a year of slow and steady progress. There were more home sales, new renovation and change downtown, and a healthy tourism industry that filled more hotel rooms and restaurants.  Job and income growth, however, are still lacking in New Mexico as the state economy is still tethered to federal government hiring and spending — and that is not likely to change in the coming year.

Here are the ups and downs of the 2013 business year in Santa Fe:

Residential real estate

With December numbers still to be counted, it is almost certain that 2013 will bring the most residential home sales in Santa Fe County since 2007. The lower end of the market was especially strong, with more than 100 sales per month for homes under $500,000 — a seven-year high. In the higher-end market, sales picked up in October, and the year saw the most $1 million-plus sales since 2008, according to data provided by Alan Ball of Keller Williams Santa Fe.

At the end of the third quarter, the Santa Fe Association of Realtors reported that year-to-date home sales were up 8 percent, while the total dollar volume of sold real estate in the third quarter rose 18 percent to $187 million from $158 million.

“Do you hear that hum,” the association wrote in October. “That’s the delightful sound of normalcy: Buyers are buying, sellers are selling. Sure this varies from region to region, even city to city, but by and large things are returning to normal.”

Though more homes are selling, it isn’t necessarily the case that prices have climbed. In the 12-month period ending in October, for instance, New Mexico was the only state to see a price decline, although it was a slight 0.5 percent, according to CoreLogic, a firm that tracks real estate trends.

“The consensus is growing that prices bottomed in February of last year. The rebound has been strongest in the Western states — primarily California, Nevada and Arizona. That said, of the 100 distinct markets that CoreLogic measures, 99 showed year-over-year gains. Only New Mexico reported a drop,” wrote the website marketrealist.com on Dec. 4.

Construction

Most of the construction activity in 2013 was in the non-residential sector, which is seeing a 40 percent growth in permitting activity from a year ago, according to McGraw Hill Construction. A good chunk of that is probably the result of two large downtown hotel projects — La Fonda’s renovation and the Drury Hotel project on Paseo de Peralta between Alameda Street and Palace Avenue.

Smaller developments on Cerrillos Road brought a new CVS pharmacy and Ashley Furniture store as well as the continued development of Las Soleras, where a McDonald’s and Starbucks took shape across from the Wal-mart Supercenter.

On the horizon for 2014 will be a string of health care-related projects: an outpatient clinic by Presbyterian Healthcare Services on St. Michael’s Drive; a new Veterans Affairs outpatient clinic at Las Soleras and a south-side primary care center by Christus St. Vincent Regional Medical Center.

The main Christus hospital on St. Michael’s Drive also is committed to more renovation as it converts patient rooms to single occupancy and is planning an expansion of its intensive care and cardio care units.

All eyes will also be on the main U.S. Post Office in downtown Santa Fe to see what happens to the 30,000-square-foot space. Postal Service administrators said they were negotiating with a new landlord — one possible location is the old Borders space in Sanbusco Market Center — but were not prepared to release further details, a spokesman said in early December.

If the post office relocated, that would leave a large vacant space in the federal building, just a block from the now-empty state District Court building on Catron Street, which is owned by Santa Fe County.

The downtown retail landscape also saw a big change this fall with the closing of the longtime Packard’s on the Plaza store. The new owners, Scott and Karen Malouf, opened a new retail business in the space during Thanksgiving week.

Tourism and hospitality

The biggest positive note on the jobs front was the resurgence of the leisure and hospitality sector — both in Santa Fe and statewide — as renewed interest in cultural tourism and the Breaking Bad cable series sparked increased interest in New Mexico.

The tangible results have been tourism growth — hiring in the sector has now surpassed prerecession levels — and hotel occupancy levels are ahead of last year.

Statewide, occupancy reached 61 percent through November, up from 59 percent a year ago. In Santa Fe, yearly occupancy stood at 64.8 percent at the end of November, up from 59.8 percent a year ago, according to the Rocky Mountain Lodging Report.

Finally, the city of Santa Fe has seen a rebound in the amount of gross receipts tax it collects from economic activity. The tax is the broadest measure of local spending by both residents and tourists, and captures everything from retail purchases to contract work, private tutoring, art purchases and real estate commissions. In the first six month of the 2013-14 fiscal year, GRT collections are up almost $3 million from a year ago, a 6.7 percent boost.

Better still, for the first time the revenue is tracking about where it was for the first six months of the prerecession 2007-08 fiscal year.

“The fact that the increases are spread out over almost the entire range of categories is a good sign for the overall improvement of the local economy from a year ago,” city Finance Director Marcos Tapia said in an email. “We know there was concern about the possible impact of the 16-day federal furlough in October, but if it affected us, it is hard to identify in these numbers.

“While the trend this fiscal year has been surprisingly strong, the February GRT report containing Christmas and Holiday spending will still be of major importance since that is consistently the largest monthly GRT amount of the year.”

 

2012 Santa Fe homes sales on pace to be best in five years

The New Mexican reported on August 11, 2012 that the summer of 2012 so far represents a rebound for residential sales in Santa Fe County.

The 158 residential sales in June were the highest number of closed transactions in 57 months. July’s sales total of 143 showed the trend continuing. Barring unforeseen circumstances, such as another financial crises, total sales in 2012 are on pace to be the best since 2007.

The total number of sales in the first seven months of 2012, 879, represents a 14 percent increase over 2011 and a 40 percent increase from 2009.

The sales have occurred in all price ranges. There have been 42 residential sales of $1 million or higher so far this year, and 366 sales at $300,000 or below according to statistics complied by Alan Ball, local real estate statistician guru.

The New Mexican observed that “Though the boost is helping the overall economy — with more business for agents, appraisers and inspectors, and increased revenue for local governments that collect gross receipts taxes — it does not necessarily mean jubilant sellers, since prices have not significantly increased from the bottom.

In the second quarter of 2012, the median sales price in the city and county combined had declined 6.8 percent from a year ago. And overall in Santa Fe County, the typical home has lost 30 percent of its value from the top of the market in 2007, according to some estimates.

That has led to a smaller inventory of homes as more owners refinance and stay put, waiting for prices to climb — especially as interest rates have remained low. At the end of June, for instance, there were 1,571 homes on the market countywide — a decrease of 19 percent from a year earlier, according to the Santa Fe Association of Realtors.

For those looking to buy, there is a new database to determine the average closing costs on a $200,000 loan in New Mexico. According to Bankrate.com, which surveyed five to 10 lenders in each state, those average costs total $3,617, including $435 for an appraisal, $495 for processing and $1,058 for the origination fee on the loan. In New Mexico, the average cost of a title search and insurance on a $200,000 loan is $1,434, according to Bankrate.

The 50-state average for closing fees is $3,754, with New York highest at $5,435 and Missouri the lowest at $3,006.”

To view the Bankrate.com website.

Original article by:

Bruce Krasnow | The New Mexican
Posted: Saturday, August 11, 2012

Santa Fe area home sales up, while median prices decline

By Chris Quintana | The New Mexican
Posted: Thursday, July 12, 2012, this article was syndicated from The New Mexican, click here for the original article

The median sales price for homes in the Santa Fe area — including both the city and the county — dropped 6.8 percent between the second quarter of 2011 and the second quarter of 2012, the Santa Fe Association of Realtors reported Thursday.

The median sales price in the combined city and county data for the second quarter of 2011 was $359,000 compared to $334,450 for the first quarter of 2012.

Dan Wright, 2012 president of the Santa Fe Association of Realtors, attributed that change to the gradual drop in the market since the peak in 2007, when the median price hit about $420,000.

“We’re at the tail end of the decline in the market,” he said. “Personally, I don’t think it will continue to go down at this point.”

The total number of homes sold in the second quarter rose by 5.6 percent, from 318 units in 2011 to 336 units in 2012.

But the total value of those home sales sank from $151.9 million in 2011’s second quarter to $144.9 million in 2012’s second quarter, which Wright said creates a more advantageous market for buyers.

Second-quarter sales of condos and townhomes also rose, to 74 units from 60 units. The median price rose from $237,188 to $245,000. Wright said low interest rates may have helped boost the market.

“The Santa Fe housing market is picking up with sales modestly over last year,” he said. “The historically low interest rates are helping to get buyers motivated.”

The inventory of available homes sank by 15 percent in comparison to the second quarter of last year. Coleen Dearing, vice president of the association, said that can be attributed to people pulling their homes off the market or people who have decided to take advantage of low refinancing rates. Dearing also said the increase in home sales has affected the inventory rate.

Also notable, the number of young homeowners, in the 23 to 25 age range, has risen for the first time in five years, according to Gilbert Garcia, a mortgage professional with Century Bank. He said organizations that can help lower the down payment, such as the New Mexico Mortgage Finance Authority or the Santa Fe Housing Trust, coupled with low mortgage rates, have helped young people get into the housing market.

Garcia added that banks are indeed lending, though the process requires more documentation of financial information than in years past.

“It’s not harder,” he said. “It’s just more.”

Garcia also said banks in the area have seen the foreclosure rate slow down while the refinancing of mortgages and new purchases of homes have been on the rise.

“The number of foreclosures is not leveling off, but it’s slowed down a bit,” he said. “But it’s going to get tougher before it gets easier.”

 

 

Housing market still flat in Santa Fe County, Sales on par with last year; home inventory down 14 percent

By Bruce Krasnow| The New Mexican, Posted: Wednesday, April 13, 2011.  This article is syndicated from The New Mexican, for a copy of the original article, click here.T

JoAnne Vigil Coppler has a short refrain for those waiting for the Santa Fe real-estate market to come back before trying to sell a house.

“It’s going to be a very, very long time, if ever,” said Coppler, Santa Fe Association of Realtors board president, who on Wednesday released sales data for the first quarter of 2011.

The data show the market slogging along with about the same number of home sales closed as last year, and a countywide median price of $355,000 for a single-family sale — a 2.7 percent decline from a year ago.

But the biggest surprise is the smaller inventory of homes on the market, a 14 percent drop from 2010. Some of this represents fewer foreclosures, which RealtyTrac reported this morning. It also could indicate the reluctance of longtime owners to sell at today’s market price.

“Sellers may be choosing to rent rather than put their houses up for sale in the competitive market,” Coppler said.

The lower inventory also has to do with a less mobile society, said veteran agent Lois Sury. “People aren’t moving for jobs, and those who need to sell a home to buy another can’t.”

That may be one reason many of the home-mortgage applicants coming into Santa Fe banks are first-time buyers, said Pam Trujillo, a lender with Community Bank in Santa Fe. Though paperwork and underwriting are tougher than ever, new buyers can go forward with a clean offer that is not contingent on a home sale.

“A lot more local people are looking to buy,” Trujillo said. “(For) those without a house to sell, there are less complications.”

With regard to foreclosures, Santa Fe’s lower numbers follow the rest of the U.S., which shows all foreclosure activities from default notices to auctions to bank sales are down from a year ago. The total foreclosure activity in Santa Fe at the end of March was the lowest since the first quarter of 2009 — and down 26 percent from December.

Highlights of the first quarter:

• There were 113 closed single-family home sales in the city, with a median price of $282,000 — a drop of 11.2 percent from a year ago.

• There were 96 closed sales in the unincorporated area, with a median price of $430,000 — an increase of 10.9 percent.

• There were 57 condo and townhouse sales in the quarter, with a median price of $255,000 — an 8.9 percent decline.

Santa Fe Real Estate News – Santa Fe City Southeast Area

The Southeast city area of Santa Fe includes Canyon Road, one of the most famous roads in the country for its art galleries, the picturesque Historic Eastside with its winding, narrow streets lined with some of Santa Fe’s oldest homes hiding behind adobe walls, South Capitol whose centerpiece is the Round House, Santa Fe’s state capitol building,  and St. Vincent Hospital, Santa Fe’s regional hospital.  The Southeast city area also contains  four world class museums on Museum Hill, which gives its name to the surrounding neighborhood of  larger homes on oversized lots.  Further out and near the boundary where the city of Santa Fe ends and Santa Fe County begins is Quail Run, a gated residential community with a nine hole golf course, health spa and restaurant.

Santa Fe Market Report
Featuring The Santa Fe City Southeast Area

Active SFAR Listings
All Santa Fe Listings (4/14/11)
Residential: 2215
Residential Land: 1486
Farm & Ranch: 122
Commercial Land: 64
Multi Family: 31
Commercia Buildings: 173
Live/Work: 21


The Santa Fe City Southeast Area Snapshot


Days on Market (DOM)
The Santa Fe City Southeast Area – Residential Sold*


Selling Price: % of List Price
The Santa Fe City Southeast Area – Residential Sold*

If you would like to know more about any of the homes for sale in the Santa Fe City Southeast Area, contact me, Karen Meredith, Prudential Santa Fe Real Estate, by e-mail or at (505) 603-3036. For a free market analysis of how much your Santa Fe City Southeast Area home is worth, click here.

 Return to view more SANTA FE NEIGHBORHOODS

Santa Fe Real Estate News – The Bellamah Neighborhood

Santa Fe Market Report
Featuring The Bellamah Area


Active SFAR Listings
All Santa Fe Listings (3/10/11)
Residential: 2154
Residential Land: 1436
Farm & Ranch: 120
Commercial Land: 68
Multi Family: 31
Commercia Buildings: 164
Live/Work: 19


The Bellamah Area Snapshot


Days on Market (DOM)
The Bellamah Area – Residential Sold*


Selling Price: % of List Price
The Bellamah Area – Residential Sold*

BROWSE FOR BELLAMAH HOMES FOR SALE HERE

If you would like to know more about any of the homes for sale in the Bellamah neighborhood, contact me, Karen Meredith, Prudential Santa Fe Real Estate, by e-mail or at (505) 603-3036. For a free market analysis of how much your Bellamah neighborhood home is worth, click here.

RETURN TO VISIT MORE SANTA FE NEIGHBORHOODS