CHALLENGES!
Just looking at these graphs you can at once begin to see the challenges we’re beginning to see in the real estate market. In the past year we’ve seen many people move within our market place – some upsizing, some downsizing. What is so extraordinary though, is the continued and growing outflow of families from major metropolitan areas locating to areas that are more desirable and more affordable. We’ve also seen many families taking advantage of being able to work at least part time from remote locations rather than being tied to one location. Add to that the huge increase in building costs and you can see how prices have risen. This has certainly been a boon to sellers but has often been truly frustrating to buyers. The respected firm, Core Logic, predicts that price increases will level off this year. Throughout the broader Santa Fe market, prices are up 16% from the first quarter of last year. Properties sold are down 13%.
There’s one greater challenge that isn’t quite as apparent in these graphs and it makes these graphs even more understandable. That’s the startling lack of inventory of homes – perhaps the greatest challenge of all to a healthy real estate market and certainly a challenge to buyers. In the broader Santa Fe area, the number of homes for sale dropped 39% since last year at this time on top of a 48% decrease in the previous year. As of today, there are only 17 homes on the market in Las Campanas and only five of them are complete. The completed homes are priced at $949,000, $1,995,000, $5,000,000, $5,900,000, and $7,750,000. Others are in various stages of completion, from waiting for a buyer before construction starts to several months before move-in. This presents an unprecedented opportunity for sellers, but it’s no wonder people who want to come to our special community sooner rather than later are frustrated!
Right now, I have several eager, willing and very able families looking for homes in our community. Here are some of the things they’re looking for and unable to find and this is just a sample:
One family is looking for a home with a guest house. The home doesn’t need to be large, but the guest house is important. Up to $3,000,000 could work.
Another is looking for a special 3 bedroom home (a two bedroom plus a den would work also). They’re looking within the $1,300,000 to $1,750,000 range.
A third is looking for a 3 bedroom home plus an office/den up to $2,200,000. A three car garage is a must for these folks.
If you have friends or neighbors looking to make a move, please let me know! Every one of these couples will make great neighbors for us! As I mentioned in my last newsletters, I often sell houses before they even reach the Multiple Listing Service.
I watch the changing landscape on a daily basis and provide facts, not fluff. I can help you sort the facts from the “fluff” because I live here and truly keep an eye on the community.
Every situation is different for every seller and every buyer. I’m dedicated to providing the best information and advice available to help my friends in this community reach optimum decisions with a clear understanding of what the marketplace can help them achieve. Just let me know how I can help.