Santa Fe Real Estate Market Overview 2016
2015 saw increased activity and increased per square foot prices in almost every price category. In fact, the median sale price per square foot increased twenty percent (20%) from 2014, the first year to year increase in seven years.
Sales of residential properties resulted in 10 months of increased activity in 2015. Pending sales increased during each of the two preceding years with 2014 showings a 5% increase over 2013, and 2015 showing a 4% increase over 2014.
The number or real estate sales have shown steady growth for six consecutive years. In 2015 the number of closed sales was very strong, with a healthy 10% increase over 2014.
We are seeing a decline in inventory, which can result in prices going up. In the fourth quarter of 2015 inventory was down 24% over the prior year. In today real estate market, if a home is priced correctly, and in good condition, it is selling with much less time on market.
Specifically, affordable properties; under $250,000, saw an increase of 7.31% from 2014, due to greater market confidence and improved financing options. Last year approximately 80% of the sales were under $500,000. Both of these sectors include second home and local buyers.
Luxury sales and land have both remained steady, but I expect them both to show stronger increases this year.
Interest rates will increase by one half percent or more. The Feds have held rates down, allowing time for economic recovery. But it’s time for money to be made.
Home appreciation will see close to double digit appreciation, as there is not enough inventory to satisfy demand. There is also strong, pent up demand, as many buyers were doing a “wait and see” which now appears to be ending.
New construction will be up! They already are and builders are going to get busier. This will be true both nationally and locally.
Santa Fe will see stronger sales in both land and the luxury markets, which have been flat the last few years. Both of these sectors did not “have” to sell, so recovery has been slower.
Life will get sweeter, easier and more beautiful every day that we allow!
Ps. Please call me to assist you, your family and/or friends with your real estate needs!