Everyone’s talking about the crazy real estate market, bidding wars, and sky-high home prices. Santa Fe has never experienced a boom like this so it’s no surprise it’s a hot topic. It’s time to check the quarterly market statistics, published by the Santa Fe Association of Realtors, to see how we fared.
In the city
The median home price has grown to $428,000. Our affordability index sunk to a 14-year low of 55 which means that the median household income is only 55 percent of what is necessary to qualify for a mortgage at prevailing interest rates. The most expensive area in town is the Northeast city limits. There the median price has risen 21 percent from last year to an incredible $967,500. Sales jumped, too, from 23 homes in the first quarter of 2020 to 40 homes this past quarter.
The Northwest city limits, including Casa Solana, has risen 22 percent from this time last year to $537,500, but sales were down over 50 percent. The Southeast city limits, including the Eastside and South Capital areas, actually experienced a decline in the median sale price from the first quarter of 2020. However, sales increased almost 20 percent with a median selling price of $800,000. The Southwest city limits realized a seven percent increase from $329,000 in 2020 to $352,500 for this past quarter.
In the county
The median price hit a record high (again) of $650,000. The Northwest quadrant, including Las Campanas and Monte Sereno, saw home prices increase a massive 62 percent, from $815,000 a year ago to $1,318,000. In the North, including the Tesuque area, sales increased over 137 percent, but the median price fell slightly, to $870,000. The Southeast, including Old Las Vegas highway, experienced a 44 percent price increase from $427,600 in 2020 to $615,000 in 2021. Eldorado home prices increased 30 percent. The median here is up to $535,000 while sales are down 13 percent.
Lack of inventory is pushing buyers to buy land and build, improving land sales. The city experienced a 40 percent increase in lots sold with a median price increase of 38 percent to $232,500. The county also had a similar increase in lots sold but pricing was across the board. The North county declined by 25 percent with a median of $165,000 and the Northwest quadrant remained flat at $115,000 despite a 60 percent increase in lots sold. The Southeast county prices increased nearly 25 percent with a robust 56 percent increase in sales while the Southwest county experienced an increase of 59 percent in price from $55,000 to $87,500.
Inventory is key to balancing our market, yet it seems we’ll be in a stranglehold for some time. At the end of March there were a total of 214 listings for sale whereas there were 283 homes for sale at the end of January. It’s tough on buyers as they outbid one another. The homes sold range from $2,000 to over $100,000 above list price. Buyers looking to finance are having to put down significant cash to outbid cash buyers and many are waiving appraisal contingencies, and sometimes inspections contingencies.
Inventory typically grows as the year unfolds. It’s anticipated that the success of Covid vaccinations will encourage more sellers, who have been waiting out the pandemic, to sell. However, there is simply not enough housing to go around, brought on by over a decade of low construction. Fortunately, all over town we see new construction which will alleviate some of that demand. As more optimism settles in and new housing projects come to light, a new growth boom in Santa Fe is dawning.
Roger and Melissa have a combined 37 years selling real estate in Santa Fe. Melissa was president of the Santa Fe Association of Realtors in 2017 and Roger is the current SFAR president. They are happy to help with all your real estate needs and can be reached at 505-699-3112 or email@example.com, or visit them online at santaferealestateconsultant.com.