The race is on and the unpopular candidates have less than 60 days remaining to garner the required votes to move into the White House in January. Where will you be in January? Possibly enjoying a ski run or watching NFL playoff games cheering on the Clevelands? Or maybe escaping the winter cold and eating seafood on the beach in Mexico? Most of us will be working to provide a safe and warm home for our loved ones and wondering what the next POTUS will be like. Entertaining or scary? Stable or confused? Traditional or innovative? Seems like we really should vote so we can have a say in it.
Our local contest is to see if we can surpass 2015 in residential sales when the wrap is complete on 2016. So far, we can brag about the best single month (August) of unit sales in over 10 years. That is layered on top of zero change, year over year, for the first six months, giving us a splash of confidence with a few more months of results to come…
The monthly residential sales total of 222 units is the most in any single month since July 2006. We averaged 233 a month for the entire year of 2005, so our 2016 monthly average of units sold year to date seems pale when you realize it is only 165. One good month does not boost us enough to counter the flat year we are experiencing, but it is still fun to report we had our best month in over 10 years.
As about 75% of sales are concentrated below $500K, our average sales price has been hovering around $420K to $450K for the last 8 years. 2015 average sold price ($425,331) was still below 8 of the last 12 years.
None of this should be news to anyone paying attention. The trend lines have slowly evolved from an overheated real estate industry ten years ago (with aggressive liar loans and adjustable rates the norm) through a deep trough of pain and foreclosures to now a more stable yet still recovering market. We are not in Denver or Dallas, where sales are fast and sellers are happy. Santa Fe does not always follow national trends and while many experts will tell you home prices are going up and the rate of homeownership is on the rise, it is hard to reveal that exact status here, without facts in support. Yes, the lower price ranges are doing fairly well and they include most sales; so maybe we should be happy? Fact is, we saw the crash last decade as a correction of a real estate industry that was out of control; people buying homes that did not have verifiable incomes and/or a track record of credit. And they put very little money down, so when the going got tough, they had no real equity to work to protect. Today’s market has underlying strength. Nobody can get a loan if they don’t pass the test.
The Santa Fe residential real estate market is steady and predictable and that may be a good thing. Yes we have holes in our bucket and yet we have numerous reasons to think its a wonderful place to live. Many want to build a wall to keep it from growing further, while others readily admit their claim on the area is as tenuous as the wind and scarce as the rain. When you hear “born here all my life” do you chuckle at the grammar or recall that you might have changed someone else’s hometown in a way they do not appreciate? A newcomer makes it her town too. There is room for all of us and hopefully enough water. Now if we can get some victory gardens growing and balance our governmental budgets without such a high dependency on oil and gas, we can be said to be making progress. I am pretty sure the sun shines here almost every day. Or is progress something to fear and distrust? Should we move forward or return to another time when we were great? I can recall that I was great when I won a few swimming races as a child, and aced a few school tests in my teens. And I have progressed since then. Now I have a blog.