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Market Conditions for Santa Fe, New Mexico
Reported by Peter Kahn, CRS, CDPE, RSPS, SRES
Updated February 9, 2012.
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By the end of January, available inventory in residential properties had contracted to 1316 homes listed for sale indictaing a slight decline in properties for sale compared with December's 1341.
Of these, 164 are either bank owned or short sales. This number of distressed properties is close to last month's number and with 19 sold distressed properties in January, reveals that the foreclosures and short sales continue to be present in the market.
Sold properties numbered 93. With 19 of the sold properties being distressed, this continues to be the arena where bargain hunters are shopping. These distressed properties also add to the downward pressure on values that those who simply need to sell and who are not in finacial straits.
The number of distressed propertuies that have been sold holds steady at about 20% for any given month. The real estate market will not stabilize until all the distressed properties are sold.
Twenty percent price reductions from original asking prices are not unusual and the downward pressure on values continues.
While interest rates hover near historic lows, buyers are still demonstrating hesitancy given overall economic news and the low interest rates do not seem to be having much of an effect.
Less expensive homes led the way in January with only six properties selling at $1M or above and most of those at significant discounts. The average days on market for the $1M plus home was 851, while
the cumulative days on market (DOM) for all the sold properties was down to about 8 months. This may be because the bank owned properties, priced at bargain levels, tend to sell more quickly.
The numbers of distressed or bank owned properties eased slightly with buyers taking advantage of terrific opportunities. The average sold price of a distressed property is in the low $200s. While foreclosure notices in the back of the newspaper may have decreased, the banks continue to act on deliquent property owners.
National reports indicate that default notices now number 6.45 million. Foreclosures appear to be easing but the courts are overwhelmed and it's estimated the a million foreclosures originally scheduled for 2011 will be pushed back to 2012.
National figures report now that 40% of all sales are of distressed properties, a bit above what our local market is experiencing.
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 moratorium on foreclosures while lenders were checking alleged improprieties in processing came and went and the banks are once again pursuing foreclosures.
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.
