Back in December 2009, if that is about the start of this decade, things were quite different in Santa Fe, NM residential real estate.
Consider looking at any of the charts or spreadsheets I include in this blogsite, available by clicking on the item in the left margin.
Lets look at the Absorption Rate – All Price Ranges chart and compare 12.31.09 with the most recent end of month (11.30.19).
1833 homes for sale then versus 677 now
1201 home sold prior 12 months then versus 2290 now
Average # homes sold (annual) 100 then versus now 190
Average months to sell all inventory then 18.3 versus now 3.5
Conclusions? Inventory is about a third of what it was then. Number of sales on an annual basis is almost double. Absorption rate is is about 1/5 of what it was then. Homes are selling faster, mainly BECAUSE there are fewer homes for sale. We could play what if and say what would thing be like here today if we had over 1800 homes for sale. But we don’t have that so pressure keeps pushing homes values higher BECAUSE someone will pay more due to limited inventory.
On another chart – Absorption Rate – $1 million and up price range, we are in uncharted territory with the Absorption Rate now at less than 10 months when it has been as high ass 46 months ten years ago. That is more than 4 times faster absorption.
Is the Santa Fe residential real estate market healthy? It is in terms of rapidity of sales, but it is hurting with a severe lack of inventory primarily under $500K. Is it fair to say if there were 200 more homes for sale under $500K they would be sold in 3 months or so? That is the average with low inventory. Of course more homes for sale would benefit buyers in their negotiations with sellers and it would also mean more prospective buyers would look at Santa Fe to purchase.
As the wise guys said in The Irishman (new Scorsese movie) “It is What it Is”
Enjoy your holidays and please do a rain and snow dance so we have a good supply of water for consumption and those homebrews you have mastered. Give your favorite service person a tip if you see them and thank them for all they do. And be most kind to first responders who risk their own lives and health taking care of us and our little mountain village.
It will be next year soon, a new decade and possibly a new home for some of you. I hope it is going to happen if you want it to.