“Increase in annual unit sales for Santa Fe residential real estate” – said the headline. How much of an increase? For unit sales, it was seven percent. This is considered a good number for most. Some might wish to see a double digit increase, as has taken place in other markets. But Santa Fe is just a tortoise compared to the hare of Phoenix or Denver. Our increases are steady and historically have built a solid foundation for future growth rather than race up and down the course setting higher and lower records every few years.
A growth in home sales is a sign that some sellers were finally able to get beyond the burden of owning a home that they formerly could not sell. And since very few new homes are being built, the inventory that did sell had a very high percentage of existing homes.
As 2013 closed we saw annual sales of homes above $1 million increase while, oddly home sales between $500K and $1 million went down a bit. The strongest segment is always the starter homes and investment properties that range from around $200K to $350K. Some areas and neighborhoods experienced hot flashes last year (Eldorado, Nava Ade, etc.) while residential land sales continued their deep sleep.
What to expect for 2014? The real estate experts all agree that interest rates will climb, which will certainly keep a lid on our ongoing market recovery. The pressure for newly built housing will increase as the “quality” homes in the existing inventory continue to sell. The best ones sell first, you know. And land sales and spec building will still be virtually dormant as mortgage lenders are still hanging back and builders still are nursing wounds from recent market conditions.
Thank you for your continued interest in Santa Fe residential real market information. If you are planning to check off some real estate events this year, such as buy a home, sell a home or something in that category, you are invited to contact me for assistance. Alan at 505-470-7153