If you don’t already own a home in or near Santa Fe, the article linked here might be useful information for you to consider. When appreciation of home values and prices is predicted to be near Nine percent a year, buying now makes more sense than using your spa membership or taking your vitamins. (Disclaimer: speculative predictions are not fact-based!)
Business Insider just published this article – http://www.businessinsider.com/best-housing-markets-for-five-years-2013-5?op=1 which you might see mentioned in several news and information sources for the next few days.
Many could see this as a signal to celebrate and become bullish on the Santa Fe residential real estate market. That saying that a “high tide raises all boats” is almost always true. Check your boat for leaks and get ready to benefit from the coming appreciation (higher water).
Now, if you know me at all, you also know that I reference both sides of an issue. Higher appreciation can lead to a seller’s market, where homes are selling so quickly that buyers must compete with prices and terms for the home they really want to buy. My strong preference is for a balanced market, with about a 6 month supply of homes available for purchase.
We do have some ways to go before we get to the 6 month water mark, so it may seem quite premature to talk about a seller’s market based on a business publication article. Predicting how much a home might appreciate in value is and always has been a fool’s game and if you are a sales professional, telling a buyer to expect any specific appreciation should be communicated with extreme care.
The tipping point between inventory and potential higher demand is when we might be reading news headlines about how wonderful our housing market is; predicted to be one of the fastest growing markets nationally. Remember please, this is someone’s prediction.
Call me (505-470-7153) for the truth about housing prices in Santa Fe, and how you can safely enter or move up in our marketplace. Alan Ball