A classic title to the Marvin Gaye song, stolen for a title to a post about Santa Fe residential inventory; what a crock! If you aren’t too upset, please read on. The focus of the Absorption Rates posted in this blog have to do with length of time on the market a home might take to sell. This is a calculation between existing inventory at a specific date (end of month) and sales of homes over the last year.
It’s a narrow distinction, but inventory has not climbed as much as is historically normal at this point in the year. Usually inventory rises steeply throughout the spring and into summer, but from the end of April this year to yesterday, the end of May, homes for sale climbed by only 41 homes. That is the net number after adding new listings and taking out solds and expireds and terminated listings. And that is much slower growth in that category than is usual.
The spectacular but boring news is that the number of homes for sale as of May 31st over the last several years has dropped by a third, since 2010. On 5.31.10, inventory was at 2163 while at 5.31.15 it was at 1446. That is a nice round ONE THIRD reduction in inventory levels over that 5 years. This is progress folks. Every step we take to lower inventory helps the homes for sale sell faster. Buyers are slow to act when they have too many homes to choose from while if their choices are fewer, they tend to be ready to move more quickly (fearing they might miss out on the good ones they like). Good news on the first of June makes me feel good about the news that will be evident later in the year.
As usual, sold statistics will be posted approximately on the 10th of the month. Please return then; or if you are really brave, sign up to follow my by adding your email to my notification list so you get an email when I post the latest figures! Thank you.