…for a great year in 2017. May the numbers you visualize show up on time and may the results you desire come true. Ending 2016 with a solid number of sold homes over the prior 12 months, in excess of the 2000 level, is gratifying and it seems to prove we are on solid ground and not backsliding.
Your image of how you think our market should look is important. It seems we should be in agreement on the following statements. You may not agree, but then we don’t have to be in full agreement.
Interest rates are climbing and will continue to climb during the year. This always means a slight slowdown in buyers purchasing homes. The higher the rates go the more of a slowdown we can expect. It is simple mathematics, not voodoo or blind faith.
New construction seems to be picking up, helping with a dearth of inventory in the lower price ranges, taking pressure off the 40-year-old homes to satisfy the needs of today’s buyers of affordable dwellings. Proposed apartments seem to be quickly approved now also and that will also affect the lower priced inventory as people will have a bit more choice. Of course we hope they buy instead of rent. That is the standard Realtor belief: that everyone should be a homeowner.
The City of Santa Fe seems to be committed to providing high-speed internet access and updated airport facilities (maybe I am dreaming) which experts believe are sure-fire ways to stimulate economic development and entrepreneurial activity. When a business opens and stimulates everything around it (as Meow Wolf seems to be doing), economic development is no longer a mystery. Oh if only we could have ten copies of Meow Wolf please! Proximity is important in real estate. Walking distance is a growing asset in residential real estate. So is being near Meow Wolf, the Plaza and several other locations such as the Dale Ball Trails, shopping centers and schools.
The world of foreclosures and short sales seems to be on the tail end of a long and painful run, though we will still see homes show up in both categories this year. The top broker in unit sales in this market several years ago was a specialist in foreclosures. That is not the case today, but our recovery is still a work in progress. Witness that many homes are not yet worth what someone paid for them nine or ten years ago. When you want a bargain, do you look at foreclosures first? Those days are about over with. So many buyers came away with huge headaches from trying to buy a foreclosure. And of course nobody made a profit except the lawyers (bless them and everyone) and the people doing the winterizing and the repair work.
2017 is going to be a watershed year for many due to unknown future events that some are looking forward to and others are living in fear about. Will Obamacare be repealed, or replaced? Will inflation take off and throw a wrench into our economic gears? How will the Tweeter-in-Chief rule the country? How will his supporters and his detractors heal wounds and work together in this coming year? Will they be able to work together at all? Will our citizens feel safe or will the threat of terrorism grow? Will our forgotten youth and disadvantaged groups be included or excluded in our uniquely American future? Will Christians be able to reconcile their religious beliefs with their demands for making America great again? Is the gap between the haves and the have-nots going to grow or shrink? Does it matter to you? Should it matter to anyone? Is TRUTH an endangered species? Will the Cowboys win the Super Bowl? These important, and not so important questions will be answered this year, maybe.
Please plan a return visit to this blog site on January 10th if you are interested in the most recent monthly numbers plus the 12 month studies of how the Santa Fe residential real estate market is doing. I am working on the annual report of residential lot sales, a 4th quarter report for homes and the rolling 12 month recap, which is showing total sales above the number of 2000 homes. This has been a long time in the making. Can we maintain 2000 plus this year? With your help it can be done.