National Outlook

The U.S. economy has improved for several quarters in a row, which has helped wage growth and retail consumption increase in year-over-year comparisons.  Couple that with an unemployment rate that has been holding steady or dropping both nationally and in many localities--consumer confidence is on the rise!  As the economy improves, home sales tend to go up. It is not more complex than that.

We can comfortably say the first quarter of 2017 is off to good start in residential real estate.  There was certainly plenty to worry over when the year began.  Aside from the new national leadership and the policy shifts that occur during such transitions, there was also the matter of continuous low housing supply, steadily rising mortgage rates and ever-increasing home prices. Nevertheless, sales have held their own in year-over-

year comparisons and should improve during the busiest months of the real

estate sales cycle.

Specific Stats about Santa Fe

Santa Fe’s housing market kicked off the year with a good increase in both sales and prices in the City of Santa Fe,” says Melissa Pippin-Carson, 2017 President of the Santa Fe Association or Realtors. “Sellers should remain optimistic with inventory levels holding steady at record lows looking back over the last ten years in our market.”

City of Santa Fe home sales was up by 26% with 196 units sold this quarter compared to 155 in the 1st Quarter of 2016.  The City median home price rose 16% from $284,000 in the 1st Quarter of 2016 to $329,500 this quarter.  

During this same period, County home prices dropped by about 8% this quarter compared to 2016 or from $434,250 in the 1st Quarter of 2016 to $399,900.  County home sales dipped a modest 2% from 148 units sold in 2016 to 145 this quarter.  The overall volume of home sales rose from $146.5M in the 1st Quarter of 2016 to $168.9M this quarter.

Condo and townhome sales jumped by 15% during the 1st Quarter of 2017 for a total of 100 units sold compared to 87 in the 1st Quarter of 2016.  The median price of condos and townhomes rose by 7% from $210,000 in the 1st Quarter of 2016 to $225,000 in 2017.  

Overall land sales were up by 25% from 35 in the same Quarter of 2016 to 44 this quarter.   Total City and County land sale prices decreased 12% or $120,000 in 2016 to $104,750 this quarter.  Inventory of homes for sale rose modestly from a total of 1,439 in the 1st Quarter of 2016 to 1,461 this quarter.  With rising interest rates, housing affordability fell to an index of 90% of what is necessary to qualify for a median-priced home under prevailing interest rates.

Santa Fe real estate is looking pretty healthy, please click on the link below to learn more or call, text or email anytime!  We would love to go to work for you!