Tag Archives: Santa Fe Real Estate News

Home prices finally returning to normal by CNN Wire, 03/05/13, Santa Fe expected to be big gainer and rise 8.1% by year end

Santa Fe photo old doorThis article is syndicated from abc15.com. To read the original article, click here.

CNN Wire reports:  “After years of wild swings, the U.S. housing market is slowly returning to normal.

The latest forecast from Fiserv Case-Shiller predicts home prices will increase by an average of 3.3% annually over the five years ending September, 2017.

“2012 was the first year since 1997 that the housing market has resembled something [close to] normal,” said David Stiff, Fiserv’s chief economist. “For the past 15 years, home price changes and sales volumes have either been boosted by a bubble mentality or crushed by crash psychology.”

From 1998 until the housing bubble peaked in 2006, home prices grew by 5% or more a year. But once the bubble burst, home prices plunged, falling 30.5% through the end of September 2012.

It wasn’t until late 2011 that markets started to stabilize, according to Stiff. Between September 2011 and September 2012, average U.S. home prices rose 3.6%. By then, 62% of the 384 metro areas Fiserv tracks reported rising home prices, up from just 12.5% of all markets during the same period a year earlier.

Many of the metro areas hit hardest by the housing bust recorded the biggest price gains during those 12 months. In Phoenix, for example, prices climbed back by nearly 21%; prices in Detroit rose almost 16%; and homes in San Jose, Calif., gained 12.5%.

Values continued to decline on Long Island, N.Y., however, where prices fell 8.1% and where Stiff said the turnaround in median income lagged the rest of the nation by about a year. Brunswick, Ga., also saw declines, down 7.1%, as did Valdosta, Ga, off 6.9%. Both areas saw jumps in foreclosures.

By the end of this year, Fiserv predicts that home prices will be heading higher in almost every metro area it tracks. Medford, Ore., is expected to gain 9.7% in the 12 months through September, the highest of any city. Other big gainers are expected to be Santa Fe, N.M., up 8.1%, Billings, Mont., 5.5% and Syracuse, N.Y., 5%.

Fiserv expects Miami home prices to sustain a 10.7% loss over the same period, the largest drop of any market. Stiff said a steady stream of foreclosures will keep prices soft in the area during that time.

While Stiff said home price gains will be similar to those experienced back in 1997, he noted the similarities stopped there. Currently, millions of homes are either in foreclosure or on the verge of it.

Otherwise, there are many positive trends in today’s market, he said. Prices are extremely affordable and mortgage rates are at or near historic lows. Overall, Fiserv Case-Shiller expects stronger demand for housing, and the sector should, once again, have a positive impact on the economy.”

2012 Santa Fe homes sales on pace to be best in five years

The New Mexican reported on August 11, 2012 that the summer of 2012 so far represents a rebound for residential sales in Santa Fe County.

The 158 residential sales in June were the highest number of closed transactions in 57 months. July’s sales total of 143 showed the trend continuing. Barring unforeseen circumstances, such as another financial crises, total sales in 2012 are on pace to be the best since 2007.

The total number of sales in the first seven months of 2012, 879, represents a 14 percent increase over 2011 and a 40 percent increase from 2009.

The sales have occurred in all price ranges. There have been 42 residential sales of $1 million or higher so far this year, and 366 sales at $300,000 or below according to statistics complied by Alan Ball, local real estate statistician guru.

The New Mexican observed that “Though the boost is helping the overall economy — with more business for agents, appraisers and inspectors, and increased revenue for local governments that collect gross receipts taxes — it does not necessarily mean jubilant sellers, since prices have not significantly increased from the bottom.

In the second quarter of 2012, the median sales price in the city and county combined had declined 6.8 percent from a year ago. And overall in Santa Fe County, the typical home has lost 30 percent of its value from the top of the market in 2007, according to some estimates.

That has led to a smaller inventory of homes as more owners refinance and stay put, waiting for prices to climb — especially as interest rates have remained low. At the end of June, for instance, there were 1,571 homes on the market countywide — a decrease of 19 percent from a year earlier, according to the Santa Fe Association of Realtors.

For those looking to buy, there is a new database to determine the average closing costs on a $200,000 loan in New Mexico. According to Bankrate.com, which surveyed five to 10 lenders in each state, those average costs total $3,617, including $435 for an appraisal, $495 for processing and $1,058 for the origination fee on the loan. In New Mexico, the average cost of a title search and insurance on a $200,000 loan is $1,434, according to Bankrate.

The 50-state average for closing fees is $3,754, with New York highest at $5,435 and Missouri the lowest at $3,006.”

To view the Bankrate.com website.

Original article by:

Bruce Krasnow | The New Mexican
Posted: Saturday, August 11, 2012

Santa Fe area home sales up, while median prices decline

By Chris Quintana | The New Mexican
Posted: Thursday, July 12, 2012, this article was syndicated from The New Mexican, click here for the original article

The median sales price for homes in the Santa Fe area — including both the city and the county — dropped 6.8 percent between the second quarter of 2011 and the second quarter of 2012, the Santa Fe Association of Realtors reported Thursday.

The median sales price in the combined city and county data for the second quarter of 2011 was $359,000 compared to $334,450 for the first quarter of 2012.

Dan Wright, 2012 president of the Santa Fe Association of Realtors, attributed that change to the gradual drop in the market since the peak in 2007, when the median price hit about $420,000.

“We’re at the tail end of the decline in the market,” he said. “Personally, I don’t think it will continue to go down at this point.”

The total number of homes sold in the second quarter rose by 5.6 percent, from 318 units in 2011 to 336 units in 2012.

But the total value of those home sales sank from $151.9 million in 2011’s second quarter to $144.9 million in 2012’s second quarter, which Wright said creates a more advantageous market for buyers.

Second-quarter sales of condos and townhomes also rose, to 74 units from 60 units. The median price rose from $237,188 to $245,000. Wright said low interest rates may have helped boost the market.

“The Santa Fe housing market is picking up with sales modestly over last year,” he said. “The historically low interest rates are helping to get buyers motivated.”

The inventory of available homes sank by 15 percent in comparison to the second quarter of last year. Coleen Dearing, vice president of the association, said that can be attributed to people pulling their homes off the market or people who have decided to take advantage of low refinancing rates. Dearing also said the increase in home sales has affected the inventory rate.

Also notable, the number of young homeowners, in the 23 to 25 age range, has risen for the first time in five years, according to Gilbert Garcia, a mortgage professional with Century Bank. He said organizations that can help lower the down payment, such as the New Mexico Mortgage Finance Authority or the Santa Fe Housing Trust, coupled with low mortgage rates, have helped young people get into the housing market.

Garcia added that banks are indeed lending, though the process requires more documentation of financial information than in years past.

“It’s not harder,” he said. “It’s just more.”

Garcia also said banks in the area have seen the foreclosure rate slow down while the refinancing of mortgages and new purchases of homes have been on the rise.

“The number of foreclosures is not leveling off, but it’s slowed down a bit,” he said. “But it’s going to get tougher before it gets easier.”

 

 

First Quarter 2012 – Santa Fe Home Sales Are Up While Inventory Is Down

According to the latest figures from the Santa Fe Association of Realtors, the number of sales is up and the number of properties for sale is down.   During the first three months of 2012, there were 249 sales of single-family homes in the City and County of Santa Fe, up 16.4 percent from 214 sales in the City and County of Santa Fe in first three months of 2011.  The inventory of all available properties for sale during the last quarter was 1,413, down 17.1 percent from the first quarter of 2011, which was down 17.2 percent from the first quarter of 2010.

During a presentation Wednesday, April 11, 2012, association officers said the statistics from the first quarter of 2012 show:

• Santa Fe housing prices remain low, compared to their high point in the second quarter of 2008.

• The upswing in the number of sales is due to low prices, low interest rates and buyer concerns that both prices and rates could  soon go up.

• Fewer properties are on the market which may be due to sellers taking advantage of low interest rate to refinance, allowing them to hold off in hopes that sales prices will improve.

“There’s a substantial uptick in the number of people looking for houses and some increase in the number of sales,” said association President Dan H. Wright.

Association President-elect Victoria Murphy, added that a number of people from out of state who had been looking for a home in Santa Fe recently have decided to go ahead with purchasing because they think both prices and interest rates soon will rise.

The median sales price of a single-family dwelling in both the city and county in the first quater of 2012 was $352,000, which is down less than 1 percent from $355,000 in the first quarter of 2011.  In a press release accompanying the first quater data Mr. Wright observed, “The Santa Fe single family housing market continues to stablize when you look at prices with sales up modestly over last year.”

Santa Fe Realtors Association officers say if the inventory of available housing continues to fall, it will push the median prices up.

The recent figures also show a 8.4% decrease in the number of days properties remain on the market, 247 days, compared to 270 days a year earlier.


Report: S.F. housing more affordable

By Tom Sharpe| The New Mexican Posted: Friday, February 24, 2012.  This article is syndicated from The New Mexican, for a complete copy of the original article, click here.

The recent economic recession has made Santa Fe housing more affordable, says a report released Friday by the Santa Fe Association of Realtors.

“For the first time in years,” the report says, Santa Fe’s median household income is enough to qualify for the purchase of a median-priced home.

“The market rates of homes have declined which does, unfortunately, negatively affect current homeowners’ investments,” it says, “yet the result is a larger number of affordably priced homes in Santa Fe.”

The report, 2011 Affordable Housing in Santa Fe, cites how the economic collapse in late 2008 led to the loss of 4,600 jobs, increased unemployment rates, poverty rates and foreclosure rates while decreasing median incomes.

But the recession caused the median price of reported real-estate sales to drop from an all-time high of $425,000 in 2007 to $330,000 for the third quarter of 2011, says the report.

“There are a considerable number of re-sale homes on the open market at low prices that were unimaginable a few short years ago,” it says. In addition to the lower median prices, the report notes that prevailing interest rates also have fallen, although lenders have become stricter in qualifying borrowers, sometimes requiring larger down payments than before.

The report says that even though there is little residential building under way in Santa Fe, nonprofits have been able to pull together funding from federal sources, grants and tax credits to increase the number of affordable-housing units:

110 units at the Santa Fe Civic Housing Authority’s new Villa Alegre compound;

60 rental units for the Housing Trust’s Village Sage;

60 rental units at the old Stage Coach Inn on Cerrillos Road have been approved for the Housing Trust;

Habitat for Humanity has acquired eight townhouse lots and has started construction on four townhouses.

The report was researched and written by Jeri Chenelle, a former government-affairs officer for the Realtors Association of New Mexico, with funding by the state association and the National Association of Realtors.

Victoria Murphy, president-elect of the Santa Fe Association of Realtors and an associate broker at Santa Fe Properties, said the idea for the affordable-housing study began when the city proposed a 1 percent “transfer tax” on the sale of homes priced at $750,000 and up. Voters rejected the tax in 2009.

“Obviously, as Realtors, we were in opposition to that, but we did come to [the city] and say, ‘Look, we understand that there is a need here,’ and in that, we found out that at times the city didn’t know how many affordable homes they actually had,” she said. “So our thing was, ‘Let’s find a way that we can have a database that we can find out exactly what’s out there and what the needs are.’ ”

Murphy said her biggest surprise was finding out how many “stakeholders” are involved in affordable housing — not only the nonprofit housing groups, but also the many construction companies that specialize in affordable housing. An extensive list of stakeholders are included in the report.

Both the City Council and the County Commission recently lowered requirements for including affordable homes in new subdivisions. But Murphy said the report’s findings don’t suggest the need for further easing of affordable housing requirements.

“The whole idea is just saying, ‘OK, this is what we have out there,’ ” she said. “How can we start promoting this so we don’t have this perception that Santa Fe is unaffordable to our workforce?”

Santa Fe Home inventory down as families stay put

By Bruce Krasnow | The New Mexican  This article was syndicated from The New Mexican, click here for a copy of the original article.
Posted: Wednesday, January 18, 2012 -

Lower interest rates have boosted home ownership in Santa Fe, but they also have reduced sales inventory as more families refinance and stay put.

“A lot of times if it’s being refinanced, it comes off the market,” said Victoria Murphy, a broker with Santa Fe Properties who serves as president-elect of the Santa Fe Association of Realtors. “Sometimes it goes back on, other times they decide to wait [to sell].”

And refinance activity isn’t yet over, predicts Jeff Payne, a branch manager at Wells Fargo. He said the federal government will roll out a new program in February that should help those who owe banks more than a home is worth get in on fixed-rate home loans as low as 4 percent.

“We keep pinching ourselves to figure out if it’s real,” said Payne, who spoke to Santa Fe Realtors on Wednesday. “It’s real.”

Sharon Yermal, a Wells Fargo mortgage specialist, has seen many people who may want to sell but instead refinance to take advantage of lower rates. They do so with five-year adjustable-rate mortgages with the idea of lowering monthly payments now but with the intent of selling when the market recovers.

“Five years seems to be the timeline they’re looking at,” she said. “They’re not looking for it to happen in the next year or two.”

Sales figures released by the association Wednesday indicate that the inventory of properties for sale is down 30 percent from two years ago, while new listings are down 18 percent over the past 12 months.

At the same time, residential sales rose 10 percent in the fourth quarter and 2.4 percent in all of 2011 compared with 2010.

The median sales price in the city fell to $289,000 in 2011 from $300,000, a decline of 3.3 percent. In the city and county combined, the median price dropped to $349,000 from $354,000.

Median prices in Santa Fe are now at a seven-year low.

“I am absolutely surprised how many homes I’m seeing on the market for under $200,000,” Murphy said.

Santa Fe 3rd Quarter 2011 MLS property statistics

Santa Fe after Winter Storm, photo by Renee Edwards

The Santa Fe Association of Realtors’ 3rd quarter MLS real estate statistics are out.  There is good news for both sellers and for buyers. First for sellers, inventory levels are down having shrunk 21.1% to 1,794 units, a positive supply-side improvement.  New listings were down, too, with 687 properties listed in the 3rd quarter of 2011 versus 816 new listings in the 3rd quarter of 2010, a 15.8% drop.  Days on market decreased 7.9% to 224 days from 3rd quarter 2010 to 3rd quarter 2011.  Absorption rates improved as month’s supply of inventory was down 23.4% to 16.8 months.

Now for buyers, the median sales price decreased 3.0% year to date from $330,00 in the 3rd quarter of 2010 to $320,000 in the 3rd quarter of 2011. Even better, Santa Fe’s housing affordability index increased from 92 in the 3rd quarter of 2010 to 107 in the 3rd quarter of 2011.  This index measures housing affordability for the region.  An index of 107 means that the median household income was 107% of what is necessary to qualify for the median-priced home under prevailing interest rates.  A higher number means greater affordability.

Different city areas experienced different activity levels in the 3rd quarter, although the total closed sales in the city for single family residences stayed flat with 148 closed sales in the 3rd quarter of 2010 and 148 closed sales in the 3rd quarter of 2011.

Area 3S, the Southeast (South) city limits, saw the greatest percentage increase in closed sales of single family residences in the city, a 133% increase, going from 3 closed sales in the 3rd quarter of 2010 to 7 closed sales in the 3rd quarter of 2011, although median sale prices declined in Area 3S from $650,000 to $359,000.  Area 01, the Northeast city limits, experienced the largest percentage decline in closed sales of single family residences, -35.5%,  with closed sales dropping from 31 closed sales in the 3rd quarter of 2010 to 20 closed sales in the 3rd quarter of 2011, although median sales price increased from $670,000 to $762,000.

17 Los Ojitos, photo by Renee Edwards

Elsewhere in the city, Area 02, the Northwest city limits, saw closed sales of single family residences increase 22.2% from 9 sales in the 3rd quarter of 2010 to 11 sales in the 3rd quarter of 2011, although prices stayed relatively flat, with the median sales price dropping from $400,000 to $399,000.

Area 3, the Southeast city limits, saw no closed sales of single family residences in 3rd quarter of 2011, down from 2 sales in the 3rd quarter of 2011.

Area 3N, the Southeast (North) city limits, was a bright spot in the marketplace, closed sales of single family residences increased from 32 closed sales in the 3rd quarter of 2010 to 35 closed sales in the 3rd quarter of 2011, up 9.4%, while median sales price increased from $573,500 to $620,000.

Areas 04N, 04S and 13, the Southwest city limits, experienced an increase in closed sales of single family residences, moving from 71 closed sales in the 3rd quarter of 2010 to 75 closed sales in the 3rd quarter of 2011, up 5.6%, but median sale price declined from $220,000 yo $209,900.

Eldorado was another bright spot, closed sales of single family residences increased from 22 closed sales in the 3rd quarter of 2010 to 33 closed sales in the 3rd quarter of 2011, up 50%, although median sales price slipped from $352,000 to $324,000.

The number of closed sales of single family residences elsewhere in the county increased from 111 closed sales in the 3rd quarter of 2010 to 117 closed sales in 2011.

In the Northwest sector of the county, Areas 24 and 25, where popular Las Campanas and Aldea are located, the number of closed sales of single family residences rose from 28 in the 3rd quarter of 2010 to 31 closed sales in the 3rd quarter of 2011, up 10.7%, although the median sales price declined from $742,500 to $699,000.

In the Northeast sector of the county, Areas, 15 and 16,the number of closed sales of single family residences declined from 8 sales in the 3rd quarter of 2010 to 6 sales in the 3rd quarter of 2011, down -25%,  and prices declined as well with the median sales price declining from $480,000 to $434,510.

In the Southeast sector of the county, Areas 05, 07, 08, 10, 14 and 26, the number of closed sales of single family residences rose from 43 in the 3rd quarter of 2010 to 55 in the 3rd quarter of 2011, up 27.9%, but the median sales price fell from $389,000 to $336,000.

Finally, in the Southwest sector of the country, Areas, 06, 11, 12 and 27, the number of closed sales of single family residences fell from 32 closed sales in the 3rd quarter of 2010 to 25 closed sales in the 3rd quarter of 2011 and the median sales price also fell from $318,641 to $282,500.

Are you interested in buying or selling real estate in Santa Fe?  Contact me, Karen Meredith, Keller Williams Realty, 314 S. Guadalupe Street, Santa Fe, NM  87501 (505) 603-3036.

All data from the Santa Fe Association of REALTORS® Multiple Listing Service. Data maintained by SFAR MLS may not reflect all real estate activity in these areas.  SFAR MLS does not guarantee, nor is it in any way responsible for, the accuracy of the data provided in this report.

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Business Insider reports Santa Fe ranks 11th on list of the Top 15 Housing Markets for the next 5 years, December 8, 2011

Santa Fe after Winter Storm, photo by Renee Edwards

Business Insider recently reported that the latest data from Fiserv Case Shiller shows that national home prices are expected to grow at an annualized rate of 3.2% between 2011 and Q2 2016.

Business Insider combed through Fiserv’s data and picked the 15 best housing markets for the next five years.  Santa Fe ranked number 11 of out of the top 15 on Business Insider’s List of the best housing markets for the next five years.  Business Insider predicted Santa Fe would have “Annualized growth from 2011 – 2016: +9.1%“.

Business Insider further reported “Santa Fe has a low unemployment rate of 5.4% and a median household income of $70,000. Its home prices are only down 17.7% since they peaked in Q4 2007.
Data provided by Fiserv Case Shiller Indexes”
To read more: http://www.businessinsider.com/best-real-estate-markets-2016-2011-12# Original article by Mamta Badkar, December 8, 2011.

Hike in building permits issued in Santa Fe could point to economic recovery

By Trip Jennings | The New Mexican
Posted: Sunday, July 10, 2011

This article is syndicated from The New Mexican.  For a complete copy of the original article, click here.

It’s not quite time to cue up “Let the Good Times Roll,” Shirley and Lee’s 1950s R&B classic. But maybe the Beatles’ “Here Comes the Sun” will do the trick.

The number of building permits issued by the city of Santa Fe has increased in recent months, tempting local officials to wonder whether the local economy is rebounding.

Matthew O’Reilly, Santa Fe’s land-use director, wouldn’t go that far Thursday, but confirmed that city staff members handling building permits are busier than a year ago. Cautioning that they were preliminary numbers, O’Reilly predicted the number of city-issued building permits for the year that just ended June 30 would eclipse the previous year’s total by 36 percent.

“We’re seeing a lot of commercial permits, and that includes new construction and remodels. And we are seeing a lot of additions, remodels and alterations in residential construction,” O’Reilly said. “What we are not seeing is new home production building.”

John Di Janni, a local builder, can relate.

Di Janni, who has built custom homes in Santa Fe since 1977, finished his last home in 2008 after several years of juggling work on three to four new homes at a time.

“We haven’t built a house since then,” he said. “There are some people who are lucky to land a new house, but they are few and far between.”

Custom Homes by John Di Janni has survived on remodeling jobs and additions to existing homes since then. About a year ago, Di Janni noticed that the number of calls for such work began to increase, he said.

“People want to update their homes, new windows, new stuccos; rather than buying new, they are fixing up their houses, it seems to me,” he said.

Tax data appear to confirm the construction trend. Spending in the city of Santa Fe rose significantly in a year-to-year comparison between April 2010 and this past April, when the city reported $19 million in taxable receipts in the construction industry compared with $11 million in the previous year, according to information from the New Mexico Taxation and Revenue Department.

The gross-receipts tax is generally a good indicator of economic activity because it is a levy not only on the purchase of goods but also of services. And, generally, growth in taxable receipts usually means more revenue for the city. A clearer picture will emerge when numbers come in for the months of May and June, the last two months of the fiscal year.

Even though it was only a snapshot, tax data for the city of Santa Fe in April appear promising. Transactions in the city that were subject to the gross-receipts tax were $202 million, nudging past the $197 million reported in April 2010 and the $200 million recorded in April 2009. April is the latest month for which information was available.

Optimists might be tempted to point to a ongoing recovery, but the data aren’t so easily interpreted. Yes, local economic activity this April was slightly better in a year-to-year-comparison, but it is still well below matching pre-recession levels. The taxable portion of the gross-receipts tax in April 2008 was $222 million, well above this April’s figures.

There are other signs that the local economy hasn’t fully recovered.

Retail trade, Santa Fe’s major gross-receipts tax generator, appears to have stayed flat, if not dropped slightly, in recent years. Retail transactions subject to the tax dipped to $67.8 million this April, down from $68.8 million in April 2010. That compares unfavorably to the $73.5 million reported in April of 2008 and $68.2 million in April 2009.

The snapshot of the city’s economic activity seems to coincide with what’s happening in New Mexico overall.

According to a recent report by the Legislative Finance Committee, the Legislature’s budget arm, state tax revenues are greater than expected. Through April, the state received $87 million more than anticipated.

Receipts from the state’s corporate income tax showed big growth, coming in nearly 200 percent over last year’s levels, the report noted. But higher-than-anticipated rebates from the state’s film production tax credit program are expected to eat into that growth, the report said.

“An unexpected rush to receive film refunds before the new tax credit law takes effect in FY12 has pushed full-year credits to approximately $101 million compared to the forecast of $65 million,” according to the LFC. The rebates totaled $65.9 million in the state budget year that ended June 30, 2010.

The LFC’s report was issued July 1, the first day of the new state budget year. It was also the day the new law changing the state’s film production tax credit program took effect.

Santa Fe Market Report – The Airport Road Area

The Airport Road neighborhood is located in the Southwest section of Santa Fe.  Airport Road was once a semi-rural road leading out to the Santa Fe Municipal Airport.  It is now an area of condos, town homes and single-family dwellings that looks more like other U.S. cities than any other part of Santa Fe.  Airport Road is also a commercial corridor through the Southwestern end of the city.  Roads along Airport Road are paved, most streets have sidewalks and most houses have garages. Prices for homes in the Southwest section of Santa Fe, including in the Airport Road neighborhood, tend to be somewhat lower than the rest of Santa Fe.

Santa Fe Market Report
Featuring The Airport Road Area


Active SFAR Listings
All Santa Fe Listings (7/06/11)
Residential: 2448
Residential Land: 1497
Farm & Ranch: 127
Commercial Land: 59
Multi Family: 32
Commercial Buildings: 168
Live/Work: 18


The Airport Road Area Snapshot


Days on Market (DOM)
The Airport Road Area – Residential Sold*


Selling Price: % of List Price
The Airport Road Area – Residential Sold*

 

If you would like to know more about any of the homes for sale in the Airport Road neighborhood, contact me, Karen Meredith, Keller Williams Realty, by e-mail or at (505) 603-3036.  For a free market analysis of how much your Airport Road neighborhood home is worth, click here.

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