|
Market Conditions for Santa Fe, New Mexico
Reported by Peter Kahn, CRS, CDPE, RSPS, SRES
Updated May 3, 2012.
|
Current Market Rating: 1
|
1
|
2
|
3
|
4
|
5
|
Buyer's
|
|
Seller's
|
|
|
|
Current Price Trend: 2
|
1
|
2
|
3
|
4
|
5
|
Falling
|
|
Rising
|
|
|
With spring in full swing and the flowering trees in full bloom, the inventory of available homes has also swelled as is the usual custom.
Inventory grew from April 1, 2012's 1253 residential properties to 1338. Of the 1253 homes for sale, 142 are either bank owned or short sales. That's a small decreasefrom last month but reflects a continuing supply of homeowners who are financial straits.
Sales numbered 134 homes and across the range of all homes sold, sale prices reflected about 85% of the original asking prices. Of the 124 sales, 6 were for $1M or more; 31 were either bank owned or short sales.
This represents a continuing pattern of downward pressure on values and opportunity for the prospective buyer. Buyers appear to be more numerous than this time last year. Showing activity is up and the market will bear careful observation to see if sales will increase.
Increased sales are reported nationally although that good news is tempered by the reduced prices that homes are receiving.
Interest rates hover near historic lows, and the appearance that the general economy is slowly improving may influence buying decision.
Less expensive homes led the way in February with
the cumulative days on market (DOM) for all the sold properties at 276 days. This time on market figure can be misleading since bank owned properties, priced at bargain levels, tend to sell more quickly and skews the days on market reporting.
With the press reporting an uptick in sales, the bulk of the transactions continue to be in the more affordable price range and distressed properties continue to cloud the market and exert downward pressure on values.
Bank of America and Wells Fargo project that 60% to 70% of sales nationally will be distressed properties in 2012.
For sellers, the odds of selling your home are about 39% which is a slight improvement over last year. Downward pressure on home values may be a contributing factor to the increased odds of a sale.
The agreement reached between the five major banks and the Attorney General's office will, on its face, attempt to assist with a greater number of short sales and address the huge inventory of distressed properties available. The results of this plan will be unknown for some time as all details have not been disclosed or implemented.
As I visit some of the existing inventory, I see a tiredness in some of the older properties that will translate into sales at lower than asking price.
Approximate Location Boundaries: Santa Fe County
Location Characteristics: This report reflects the cumulative residential real estate activity within the Santa Fe Association of Realtors reporting through the multiple listing service (MLS).
For More Information:
View Market Conditions of other areas served by Peter Kahn
Navigate: Top > New Mexico > Santa Fe
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
