We get. You got. It is. Hear hear. I don’t even know the phrase or the proper tense, but once in a lifetime I report on Santa Fe residential sales and inventory during November 2015. This is the information through and including October 2015. And we have arrived and here is the report. See: Statistics in left menu…
First – some of the landmark achievements! We dipped below 6 months for the Absorption Rate for the first time in 9 years with reported sales and inventory under $500,000. You well know that is the most active segment in our market Of all sales in Santa Fe city and county over the last 12 months, 74% of them were at or below $500K. That pesky Absorption Rate now is 5.77 months! Fantastic everyone! Your hard work is paying off. We are beginning to see the shape of balance in our market again; at least in that price category.
Please remember that the Absorption Rate I calculate and post in this blogsite does not use the Days on Market statistic pushed out from our MLS data. That number is too easily manipulated and is not reflective of how long it takes to sell a home here. The weakness in that DOM figure has been reported in this blog several times in the past. Use it if you dare! Better to tell the truth, I say.
Total sales (all prices) for the last 12 full months (ending Oct 31, 2015) hit the count of 1990. That is amazing since we spent time in the 1200s and 1400s and 1600s over the last 8 years. And now we almost ALMOST hit 2000 sales for a year. We might yet see it during the next few months or maybe we will have to wait. It’s an artificial threshold anyway, although it is psychologically stimulating to hit that mark. We feel better when we can say we have passed the 2000 level, after so many years of recovery and stress.
As unit sales continues to climb between 6 and 8% year over year, we are also tracking the ongoing drop in inventory. That makes statistics look good compared to prior years but it also indicates a lack of newly built homes to offer the qualified buyers looking right now. We continue to be concerned about the lack of new product coming up and see a good portion of the remaining inventory as dated or of medium quality. True as always, the good ones are gone fast. The leftovers are picked over. Do you want the best price possible or the home you would most love to live in? It may not be possible to have it both ways. The buyer focused solely on price may not even tour the best home for their wants and needs.
Please feel free to read through the charts and spreadsheets under the Statistics menu on the left side of the page. They are looking better all the time and there is every reason for continued optimism for the future of our market area residential real estate. Interest rates remain very low, buyers are thriving in other markets and other states and may feel the comfort level to invest in real property here in the near term.
Look for some additional easy-to-read charts with some average sales price info and similar benchmarks in the future. We have a strong and high average sales price due to the sales above $1 million while the median is much lower due to the high volume of sales in the lower price ranges.
If you would like me to focus on any other market-wide data and trends, please email me at AlanBall2@gmail.com.
And if you are seeking professional assistance in selling your home or in finding one that you love and can purchase, I am happy to help you reach your goals in real estate in the Santa Fe area.
Thank you and happy holiday season to all.