It is hard to believe that we are halfway through this year. What a strange and trying time it has been.
While the economy seesaws with record-high unemployment and the loss of too many small businesses to count, and conversely, the stock market continues its baffling surge, the one consistency we see on the horizon is the Santa Fe housing market.
If you are a buyer in this market, it is as frustrating as the governmental mandates over the pandemic. If you are a seller and not squeamish about selling, your home’s value is probably the highest it has ever been. On July 14, the Santa Fe Association of Realtors released its second-quarter housing stats. Let’s take a closer look.
Not surprising is the increase in sales price. Whether fueled by the pandemic or other factors, the significant shortage of homes coming on the market at present is keeping prices high. New listings saw a 28 percent decline from last year, which had an impact on our closed sales numbers. Sales for single-family homes were at 320, down from 499 sold last year, a 36 percent decrease. With the housing inventory down to just 2.7 month’s supply, it is no wonder the second-quarter median sales price has increased nearly 5 percent, from $425,000 in 2019 to $445,000 this past quarter. While 5 percent may not seem like much, consider this in the age of heightened restrictions regarding travel and the lack of out-of-state buyer traffic that normally fuels our real estate market.
By neighborhood, some fared much better than others. Tesuque and northern Santa Fe County had a remarkable median price increase of 93 percent, from $399,000 in 2019 to $769,500. The northwest quadrant, including Las Campanas and the surrounding area, saw the median price increase over 4 percent to $885,000. Old Las Vegas Highway and southeast Santa Fe County homes had a 7.5 percent appreciation in home prices, while southwest Santa Fe County, including the Rancho Viejo and N.M. 14 areas, experienced almost a 10 percent increase from $365,000 to $398,850 this past quarter. And Eldorado continues to chug along, with the median selling price increasing to $440,000 from $417,500 in 2019.
In town, the northeast city limits, due to lack of quality inventory and an older housing supply, suffered a 3 percent decrease in sales price: $775,000, from the $800,000 median last year. The northwest quadrant of the city, including Casa Solana, saw the median home price jump from $481,000 in 2019 to $532,500 this past quarter. The South Capitol neighborhood and the east side experienced a 6 percent increase in selling price, while the neighborhoods south of St. Michael’s Drive but north of Interstate 25 had a whopping 62 percent increase in sales price, from $582,000 in 2019 to $947,000. Southwest Santa Fe had a modest increase in price of 3 percent, with the median sales price hovering around $334,000.
Land sales remain a mixed bag. Only 11 lots sold inside the city limits, compared to 21 from the same period last year. Half of those sales occurred in the southwest city, with a median sales price of $109,900. In the county area outside the city of Santa Fe, 62 lots sold, which was down over 17 percent from last year. The northwest quadrant was the most productive, with 26 lot sales and the median price increasing from $110,000 to $187,000.
Interest rates hit historic lows last month, with lenders offering deals such as 2.875 percent on a 30-year fixed and 2.375 percent on a 15-year fixed. Certainly, this does a little to offset the higher home prices and allows buyers to afford more, which will keep the market strong. We do not foresee a change in the market for the balance of 2020 given the current environment.
Until next time, we hope all our readers continue to be well and stay safe, and let us all remain optimistic that things will continue to get better around us.