The State of The Union address broadcast on television last evening was what most people expected to hear. The supporters and opponents of our sitting President apparently heard exactly what they wanted to hear. For some, that meant they had new ammunition to use to criticize and complain. For others, it meant they have their leader’s back as he heads down the stretch of his 4th year in office. So if both sides are correct, what did he really say? One thing he did not speak about very much was housing. I did not detect any big new program he would put forth to try to resolve the still terrible housing industry. Did he mention any national programs to help those homeowners with “underwater” homes (more debt than home value)?
It seems we should stop waiting for Washington to come to the rescue of homeowners, renters and those in the industry. There is not likely to be a magic solution coming soon. I am afraid we are just going to have to work our way out of it, one house at a time…one market at a time.
So how are we doing in Santa Fe? That is an important market to this blogger and probably all those who visit here and read and comment. Many signals point to a consistent gradual improvement in our market. We are quite hesitant to promise miracles and the renewal of home appreciation, but the market seems fairly stable and each period of time seems a little better than the previous period. Month after month, year after year, we are seeing slight increases in volume of sales combined with slight decreases in the inventory of homes. This translates into a more balanced and healthier market. We are on our way; not quite there yet, but it seems we can see it from here.
Of the Santa Fe residential real estate statistics I study and report carefully, the absorption rate for the home price range of 0 to $500,000 is much much better than it has been in a full four years. That is a sign of balance and health. And within that range, there are geographical market segments that are doing even better, with absorption rates similar to the go go days of the 2000s. I will be doing some research and report in with some interesting results. But if you knew that there were more sales in a certain neighborhood in the last 6 months than there are homes listed for sale right now, wouldn’t that seem like a healthy market? Let’s see what we can find. Contact me if you would like your neighborhood or subdivision included.