Return of Godzilla

HA!! Was that a silly scary movie or what? If you were under 7 years old you might be scared, but it was so ridiculous that it was hard not to just laugh. No laughing matter with our inventory of homes for sale in and around Santa Fe NM. So I am calling the new larger inventory Godzilla, although there is no reason to be fearful.

Over the last 5 years, inventory has grown from January 1st to July 1st each year. It is a seasonal phenomenon and its been going on since someone first kept track of statistics. From Jan 1, 2009 thru Jan 1, 2013 (5 years of numbers) the increase in inventory over the first 6 months for each of those periods was 25%, 22%, 10%, 9% and 26%. With that sort of growth in our inventory, I have trouble understanding why some say we don’t have homes to sell to our buyer customers.

On July 1, 2013, our inventory of homes, townhouses and condos in Santa Fe city and county stood at 1760. The number of homes sold in the prior 12 months was almost that many so we have a little more than one year’s supply to go into the sold column, plus new listings are coming online everyday. As new listings are equal to or more than the solds, our numbers are not getting better very fast.

The shadow inventory that we feared has contributed to the increase in inventory. There is an unknown number of homes out there that the owners would love to sell, but they have waited for the right time to try again. Some decided this year was the right time based on the increase in inventory. Others will wait until next spring while some homeowners do not have the luxury of picking a season. They might need to sell now.

In 6 months, I am going to guess we will still have about a year’s worth of inventory and I will then be reporting on how many homes are selling versus how many are being taken off the market by owners allowing their listing agreements  to expire. This long slog through the mud of our real estate market recovering is still going to take some more time. Buyers, get your pencils sharpened. Deals are still out there!

Posted in Posts & Updates, Santa Fe area real estate, Statistical Data - Santa Fe real estate market and tagged , , , , .

The writer is a 68 year-old young man engaged as an active REALTOR (associate broker) with Keller Williams, in real estate sales and management in the Santa Fe NM market area. My career has been in and around the real estate industry for more than 35 years, ranging from mortgage lending (interim, commercial, residential); residential property management and leasing; shopping center development and leasing; real estate sales; sales training; title insurance as an executive and an escrow officer; various management positions; consulting and other related activities. That plus a bunch of banking experience including our family-owned Bank of Santa Fe in the 1980s. Where has the time gone?
My background means you have my working knowledge of the entire transaction process at your disposal. That comes with honesty and no bullshit.