It is hard to believe that we are half-way through this year, and what a strange and trying time it has been. While the economy seesaws with record high unemployment and the loss of too many small businesses to count and conversely the stock market continues its baffling surge, the one consistency we see on the horizon is the Santa Fe housing market. If you are a buyer in this market, it is as frustrating as the governmental mandates over the pandemic. If you are a seller and not squeamish about selling, your home’s value is probably the highest it has ever been. On July 14th, the Santa Fe Association of Realtors released their 2nd Quarter Housing Stats, so let’s take a closer look.
Not surprising is the increase in sales price. Whether fueled by the pandemic or other factors, the significant shortage of homes coming on the market at present is keeping home prices high. New listings saw a 28% decline from last year which had an impact on our closed sales numbers. 2nd quarter sales for single family homes was 320 down from 499 sold last year, a 36% decrease. With the housing inventory down to just 2.7 month’s supply, it is no wonder the overall median sales price has increased nearly 5% from $425,000 in 2019 to $445,000 this past quarter. While 5% may not seem like much, consider this in the age of heightened restrictions regarding travel and the lack of out of state buyer traffic which normally fuels our real estate market.
By neighborhoods, some fared much better than others. The Tesuque and North County had a remarkable median price increase of 93% from $399,000 in 2019 to $769,500. The NW quadrant including Las Campanas and surrounding area saw their median price increase over 4% to $885,000. Old Las Vegas Hwy and SE County homes had a 7.5% appreciation in home prices while the SW County including Rancho Viejo and Hwy 14 experienced almost a 10% increase from $365,000 to $398,850 this past quarter. And Eldorado continues to chug along as the median selling price increased to $440,000 from $417,500 in 2019.
In town, the NE city limits, due to lack of quality inventory and an older housing supply, suffered a 3% decrease in sales price of $775,000 from $800,000 last year. The NW city limits including Casa Solana saw their median home price jump from $481,000 in 2019 to $532,500 for this past quarter. The neighborhoods of South Capital and the Eastside experienced a 6% increase in selling price while the neighborhoods south of St. Michaels Drive but north of I-25 had a whopping 62% increase in sales price from $582,000 in 2019 to $947,000. The SW city limits had a modest increase in price of 3% with the median sales price hovering around $334,000.
Land sales remain a mixed bag and only 11 lots sold in the city limits for the 2nd quarter of 2020 over 21 from the same period last year. Half of those sales occurred in the southwest city limits with a median sales price of $109,900. In the county, 62 lots sold which was down over 17% from sales last year at this time. The NW quadrant was the most productive with 26 lots sales and a median sales price increasing to $187,000 over $110,000.
Interest rates are at historic lows with lenders offering deals such as 2.875% on a 30-year fixed and 2.375% on a 15-year fixed. Certainly, this does a little to offset the higher home prices and allows buyers to afford more which will keep the market strong. We do not foresee a change in the market for the balance of 2020 given the current environment. Until next time, we hope all our readers continue to be well and stay safe and let us all remain optimistic that things will continue to get better around us.”