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Three months in the books and 2017 looks promising indeed. One month (March) of homes sold was well above last year, and the first three months of the last several years show a steady positive trend line. The first quarter of 2015 and 2016 produced 395 home sales while this year same period shows us with 458, a healthy 16% increase. Will that continue? If it does continue, we will soon have that shortage of inventory that the rest of the country seems to be experiencing. That inventory shortage is not something to strive for; in fact we need new construction and some spec homes soon or we will suffer from the shortage that would result. Buyers will be hurt the worst as they will have less to choose from and prices will reflect the sellers market that would take over Santa Fe. Note I said would, because it is not here yet.
In some price ranges, the recent results show good strength and a continued improvement. I have been moaning about the fact that we are still in our “recovery” mode, but maybe just maybe this will be the year we truly get beyond the pain and loss of the last 10 years. Take a look at the latest rolling 12 month unit sales totals in most any price range… (the spreadsheets are on the left margin) …you will see the most recent number in unit sales is the highest in about 10 years. While we have not yet regained the ground we held from 2003 to 2006, we are fast approaching those levels of unit sales. There were times when a full recovery seemed a dream, but it might just come true. Keep pushing my friend!
After years of scraping the bottom, bouncing along the bottom, calling the bottom, fearing there may be no bottom to the real estate crisis, burst-bubble and final markdowns/meltdowns, it is exhilarating to now be able to report some positive news about Santa Fe area residential real estate. I like it like that.
