The average home price in the busiest area of Santa Fe hit a record $ 410,000 in the third quarter, the Santa Fe Association of Realtors reported Monday.
The area west of St. Francis Drive between Interstate 25 and Alameda Streets is the cheapest housing sector in Santa Fe County, but prices rose 18.2 percent.
Who can afford it? Foreign buyers say real estate experts.
Despite record home prices, this part of a city saw 190 home sales in the third quarter – a 22.6 percent increase from 155 homes sold in the third quarter of 2020, the association reported.
“I would say most of the buyers are not from Santa Fe,” said Roger Carson, the association’s president. “When you’re trying to buy a house, it’s really daunting; it weakens. “
All single-family houses across
Santa Fe County saw the average sales price increase 10.3 percent from the previous third quarter to $ 590,875, according to association statistics.
The average home price in the city of Santa Fe rose to $ 475,000 in the third quarter. In the county outside of Santa Fe city, the average price of homes sold rose to $ 714,506 – a 19.1 percent increase from $ 600,000 in late summer last year and an increase of $ 67,000 from the previous quarter.
Outsiders have been driving the Santa Fe market since the first few months of the coronavirus pandemic, Carson said.
“Everything in town is seen as desirable by outside people,” Carson said. “That has shifted in our housing market. We have a new reality. Many people who move here work from home. Your employer is in New York or Chicago or San Francisco. “
Incredible, maybe the house price increases in Santa Fe are relatively small compared to the 18 percent nationwide increase in July calculated by CoreLogic, the global provider of real estate intelligence and analytics.
Idaho house prices rose 33.6 percent from July through July – the highest in the country – followed by Arizona at 28.4 percent and Utah at 25.7 percent. All three states are inundated with newcomers.
In Bozeman, Mont., Single-family home prices rose 49 percent from June through June, the Gallatin Association of Realtors reported. CoreLogic reported a 41 percent increase in
Twin Falls, Idaho, over the same period and a 35 percent jump in Bend, Ore.
That doesn’t mean Santa Fe property prices are any less excruciating, said Mike Loftin, CEO of Homewise, the local builder and financier of affordable housing.
“I’m surprised it’s that high,” he said of the $ 410,000 in Midtown and the South Side. “This is a really, really tough market. It’s really difficult because there aren’t enough houses to buy. What we really need is more offer. “
The housing stock in Santa Fe County has been in the 200s for four consecutive quarters, as opposed to 600s in the warmer months and 400s in the colder months of the past two years. In 2016, the inventory was over 1,000. The current numbers correspond to four quarters with an offer of less than two months, which is considered very tight as six months are considered to be a balanced market between buyers and sellers.
“This is new territory,” said Carson, associate broker at Keller Williams Realty. “When you are a buyer, you have to be very vigilant. If you want to buy something you have to be here [in person]. Sellers are really skeptical now [of online offers]. Cash is still absolutely crucial. You really need a good real estate agent to navigate that. “
Santa Fe County homes were on the market for an average of 23 days in the third quarter, the lowest since the association began compiling statistics in 2005. This is unlike when the homes were still in operation. The market sells almost on the spot for more than 100 days, in recent years even 60 to 80 days.
Negotiating a lower price is out of the window, as average home sales have been at 100 percent of list price over the past two months. List prices are a mere suggestion with odds that successful bidders will bid more.
“It’s not a suggestion, it’s an invitation to make your best offer,” Carson said.
The city saw its homes sold increase from 299 to 312 in the third quarter, while the rest of the county saw a decrease from 259 to 226. Carson attributes this solely to fewer homes for sale in the county than in the city.
“The solution is you need more living space,” said Carson. “Every home can’t be 1,400, 3-2 in a quarter of an acre,” Carson said when describing a 1,400-square-foot home with three bedrooms and two bathrooms. “People need to get into the market at a lower price.”