Market Conditions for Santa Fe, New Mexico Reported by Aysha Griffin, REALTOR Updated July 1, 2009.

Current Market Rating: 2 1 2 3 4 5 Buyer's Seller's

Current Price Trend: 3 1 2 3 4 5 Falling Rising

July 1, 2009 Update: We're seeing buyers edging back into the Santa Fe market! Interest rates are low (for highly qualified buyers) and even jumbo rates have dropped to about 1% over conforming rates...a welcome change from the recent-past. Our own experience (and that of many colleagues) attests to a marked increase in interest from serious buyers, and offers being accepted by sellers.

Despite the bad judgment and greed of those who misused mortgages, ownership of real property will always be of value because it is REAL. And especially in desirable areas, like Santa Fe, where resources are limited and demand is growing, real estate is a sound long-term investment.

Unlike many markets in the U.S., Santa Fe did not experience wildly inflated prices (like Phoenix, LA, FL) and therefore our prices have not fallen dramatically. New Mexico is considered one of 5 states not officially "in recession." Here is my analysis of the Santa Fe market. Last week, an economic report put Santa Fe among the top 10 cities whose real estate is likely to appreciate at about 4% a year for the next decade, compared with many locations unlikely to appreciate at all. Here is my assessment of the current Santa Fe market:

We are seeing three distinctly different markets: 1. The high-end (over $800K), which is largely holding its value, although we're seeing prices drop 10-15%; 2. The bottom-end (under $450K), which has dropped in price considerably, offering a lower entry to Santa Fe real estate than in the recent past; and 3. The mid-range ($450K-$800K) which has limited excellent offerings, and these tend to sell quickly if priced aggressively; the schlocky over-priced ones stay on the market forever and discourage buyers. There are good deals in every price point...and our job is to find and negotiate them for you.

Depending where you are in your budget as buyer, or price-point as seller, will determine your perception of the market. And despite a huge inventory, well-priced houses in superior condition tend to sell quickly; and why wouldn't they? There isn't a lot of competition amid a lot of schlock. Point being, for serious buyers, this is a good time to deal and there still is some imperative to act if you find a home you love.

Despite the slow market (which, by the way, retained 2006 sales numbers in the million-dollar-plus range throughout 2007 and 2008), the spirit in Santa Fe remains optimistic. Maybe it is our daily dose of sunshine in winter, or that we know New Mexico is the most-affordable sunbelt state, or that Santa Fe is the most unique and marvelous small city in which to live. But whatever it is, we saw 2008 homes sell in the city at an average of 94% of listing price. 2009 solds are around 90% of listing price.

Like most U.S. markets, inventory is backlogged and there are fewer buyers. To try and move their properties, serious sellers are reducing prices and we're starting to see some pre-foreclosures and REOs hitting the market; although these are not as common as in many other markets and often not the great deals buyers hope for.

The largest price reductions are in the lower and upper ranges, but historical properties close-in to the Plaza and desirable east side properties are holding their values because there is such limited supply.

I suspect that when the housing market turns again (due to pressures of population and Americans' desire to create wealth), we'll see Santa Fe's prices charge ahead.

With interest rates at or near historic lows, this may be the best time to buy in Santa Fe.

If you're thinking of Santa Fe, let us help you become familiar with our real estate market now. Through monitoring and analysis, we will provide you information and assistance tailored to your needs and interests. We'd be honored to help you "Inhabit Your Dreams!"® Please call or email us today.

Santa Fe's reputation as one of the Top Destinations in the U.S., the 2nd largest art market (after NYC) and a beautiful, dynamic, progressive and friendly city, is not overstated.

Go Realty proudly matches buyers with properties that they love. We are grateful for the quality of clients who find us and trust us to help them, and allow us to count them among our friends.

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If you, or anyone you know, would like more information on buying, selling or investing in the Santa Fe area, or for a FREE CONSULATION about selling your home or investment property, please contact us, (505) 995-0195.

Remember, we can help with real estate buying or selling anywhere in the world! Your referrals are always appreciated!

SUMMER 2008 SUMMARY
There are two opposing factors at play: 1. The real estate community which, by and large, is holding to the opinion that Santa Fe real estate has an inherent value apart of the realities of the marketplace, and 2. Indications of a slight pick-up in buying activity, no doubt from pent-up energy, low interest rates for qualified buyers and cash buyers. But these qualified buyers, informed by the media and financial facts, are, understandably, seeking "screaming deals." And why not? It's a buyer's market...except, often in Santa Fe where central and north-side prices have not noticeably fallen.

My point is that while there are reduced numbers of buyers, all looking for and expecting amazing bargains, there aren't as many bargains available as you might think.

That said, it looks like 2009 could be the best time to buy Santa Fe property as we are seeing, for the first time, some serious price reductions and even some distress/short sales. For investors and those keen to buy into the Santa Fe market, this is good news, and we're happy to provide consultation about these.

Because "screaming deals," and sellers willing to take considerably less than asking price are still not common, it's still important to stay on top of the market daily, be ready to buy and be willing to act decisively, as these deals sell quickly. We don't want you to be a disappointed buyer who lost out on an exceptionally-priced property because of indecision or lack of preparation.

This is an especially important time to work with a Buyer's Agent so that you understand the market, are alerted to deals, and are ready to act when the best deal for you comes along.

Keep in mind that Santa Fe is a popular international destination, so we are NOT seeing significant reductions in prices across the board, especially in the historic districts, upscale east side, northeast or northwest (Las Campanas and surrounding areas), where square footage prices usually run $300 and up depending on location, finishes and total square footage (generally, the smaller the house the higher the cost per square foot).

2008 statistics from our Realtor's Association substatiated what we already knew: There is a lot of inventory and sales are off about 20% from 2007. But the best homes still sell quickly and at or close-to asking price; while less-wonderful homes are sitting on the market longer and we're seeing price reductions and more flexibility on the part of sellers.

If you'd like a free copy emailed to you of the association report, please contact us!

For sellers this "buyer's market" means having your property in top condition and pricing aggressively. For serious buyers, it means opportunity, but you're not the only buyer so don't drag your feet if you find the right property.

Unlike some other markets, we're not seeing a lot of foreclosures, and don't be fooled by the hype about them. Most foreclosures are homes in inferior condition which sell for close to market value. We are starting to see some short sale negotiations with banks but, again, you need to be aware of them and act quickly, so work closely with your buyer's agent.

Choose someone who has a real feel for what you're looking for and keeps on top of the market for you, so as to find the right property at the right price when it comes along.

Santa Fe real estate is a small market and many of our properties are unique. In the luxury market and historic districts, there are usually no two homes the same. Therefore, when you find one you love, you must act. Once it's sold, you won't find the same, and when it next comes on the market it will be for a much higher price.

Santa Fe is not for the tightly budgeted. Better values can be had in neighboring counties but, then, you're not in Santa Fe. It is the uniqueness of our city and scarcity of land that commands the prices, and it seems demand will continue to drive them upward.

Have you ever wanted to pick up the phone and talk to someone about Santa Fe, without any pressure or obligation? Without being placed on a mailing list or contacted repeatedly? Then call (505) 995-0195 and find out what you want to know about Santa Fe, NM. If we don't have the answer, we'll find it for you.

Santa Fe is a diverse city with a wide variety of options for the home or land buyer or investor: New family or empty-nester homes in the southwest start in the high 200K's, while a "move-in-condition" modest house "in town" can rarely be found under $350K. For a more amenity-filled home "close-in" to town, a ballpark starting point is $700K. Condos (mostly converted apartment complexes) start in the low $200K's, although it is more realistic to plan on $300K to get options.

There is a big difference in price (and quality) often from street to street, if not from house to house. Having a Buyer's Agent who understands your tastes, needs, goals and budget is critical to streamlining the buying process here. Call us to talk Santa Fe -- no pressure, just good information!

Santa Fe has long been an active second-home market and demand continues for "close-in" properties. As one L.A. buyer said, "You get a lot for your money in Santa Fe." But such sentiment depends largely on what market you're coming from.

ZIP Code: 87501

Location Characteristics: Santa Fe is a friendly, culturally diverse and exciting small city which attracts visitors and residents from around the world. A mild and dry 4-season climate, 300-plus days of sunshine, unlimited outdoor recreational opportunities and clean air make it among the top-named cities for healthy living. Our unique pueblo-style architecture, renowned cultural events and world-class art are among the many reasons Santa Fe is a great place not only to visit but to relocate or invest in vacation property. New Mexico, with a population of 1.9 million, is considered "the last undeveloped Sunbelt state" and, as such, offers much opportunity, especially in a downturned market.

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