Santa Fe has become a half-million-dollar city.

The median price for a single-family home sold in Santa Fe in the fourth quarter of 2021 crossed the $500,000 mark for the first time, reaching $535,000.

The price is even higher across Santa Fe County, including in the city.

That number hit a record $607,500, 13 percent higher than a year ago, according to data from the Santa Fe Association of Realtors. County areas surrounding the city saw a 23 percent home price hike to $746,000.

Even the city’s quadrant with the lowest home prices — an area that includes midtown and southern Santa Fe, where more than a fourth of Santa Fe County home sales occur — had a median price of $425,000, the association said in its quarterly report.

That’s right — the cheapest median home price in Santa Fe County is $425,000.

The price has increased 20.5 percent since the fourth quarter of 2020 for the 172 homes sold in the area west of St. Francis Drive, between Interstate 25 and Alameda Street and stretching across the city’s south side.

“I think it follows a national trend we are seeing” of steeply increasing home prices, real estate association President Andrea Dobyns said of the city’s overall rise in home prices. “We are seeing it across the United States.”

The U.S. Census Bureau reported the median sales price of new houses sold in the U.S. in November was $416,900.

The single-family housing inventory in the city and county of Santa Fe, the number of homes on the market at the end of the quarter, was excruciatingly tight, with only 150 homes available — less than a month’s supply. In contrast, there were 494 homes available after the fourth quarter of 2019; that was a 3.3-month supply, still considered tight in a supply-and-demand metric where a supply of five to six months is considered a balanced market.

“You hear these numbers, but we still make things work for people,” Dobyns said. “Realtors will write letters to neighbors asking, ‘Are you interested in selling your home?’ I’ve had clients put offers on

25 different homes. If they need a home, they keep trying. People that need homes still need homes. They are making it work.”

She added: “The market is still busy. The market is still moving steadily. ...

“People bought a lot of homes in the last couple years,” Dobyns said, explaining why the housing supply is so slim. “A lot of people have not owned homes that long, so they are not ready to put them on the market.”

And many people with homes are sitting tight, uncertain if they could find another home to buy if they sold the one they own.

Countywide, the number of home sales dropped to 538 from 566 year-over-year, while the number of sales in the city inched up to 304 from 302, with a larger increase in the dominant midtown-south side sector, to 172 from 152.

Outside the city, county homes sales dropped 11.4 percent to 234 from 264.

Record-low interest rates are still in place to partially ease the sky-high prices, but the Federal Reserve Board indicates interest rate increases are likely in 2022.

(4) comments

Celia Ludi

I wish there had been more relevant information in this article, for instance:

-how many total houses were sold?

-how many houses were bought by people who already live here?

-how many were bought by people who are planning to live in them full-time?

-what was the median age of the buyers?

I don't know if any of that information is part of the record, but it sure would be interesting to know.

The most relevant addition to the story, however, would be what the median household incomes in the City and the County are.

Alex Trissel

Santa Fe is known for being a difficult place to build for many reasons. Some of those are legitimate concerns, and others are just bad policy or corruption. Land Use officials continually get caught in corruption scandals. And the City Council seems to view the Land Use dept. as a way to grant political favors, rather than enacting progressive policy. Councilors Villareal and Rivera were recently found to be pushing the Land Use Director to revoke STR permits for their politically connected friends.

The short term rental program is one example. Webber capped the number of new permits and grandfathered in the large, monied property owners who were operating multiple properties on Airbnb (instead of creating a system to grant permits via a lottery system on a yearly basis so new home owners could participate). This means that no new home owners who actually LIVE in Santa Fe can even get a permit to help earn some extra income.

Councilor Romero-Wirth blocked an amendment that would have limited permits to people who actually LIVE in Santa Fe, so the program is pretty much a revenue generator for people who live outside of Santa Fe (and outside of New Mexico). You can google the list of permit holders published by the Land Use Dept to see that

Khal Spencer

Income inequality and too much money in the hands of investment firms, gobbling up homes. We need to fix the tax code for starters. Bring real jobs back to the United States. Or else.

Monica Romero

Sad. Owning a home will never be in reach for many.

Welcome to the discussion.

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