With 5 years behind us since a global pandemic seemed like a problem only epidemiologists dreamed of, I thought we should look at what’s happened in real estate in our little corner of the world. Looking back at 2020, it truly seemed that the world turned upside down – globally, nationally, and locally. If falling into a rabbit hole means entering an unknown world, we certainly felt that way! It’s remarkable how resilient our small part of the world has been in the past 5 years.
Las Campanas has fared well through the pandemic years. We can’t compare today to the “frenzy” of 2021, but you can see from these graphs, that the number of homes sold are up from 2022, although median and averages prices have declined just a bit. There have been so many new custom homes built in Las Campanas though, I think if we were able to add those in, we’d see a more accurate picture. New homes and homes in outstanding condition have certainly contributed to the uptick in square foot prices. There are only 31 homes actively on the market in Las Campanas – a great situation for any owner wanting to move on to their next adventure!
It’s very clear that people coming into our community are looking for minimum care, newer homes and are willing to pay the price for that. An older home with all of the traditional finishes is also broadly appealing – as long as the home is in the best condition possible. When we consider how many of our new neighbors here are second homeowners, it makes sense that they want homes that are in truly good condition, regardless of their style or age.
Prices for building lots in Las Campanas have steadily gone up, but the number of sales has gone down over these years. Pre-pandemic (2019) 52 sales were reported to the Multiple Listing service with an average price of $130,724; a high of $400,000 and a low of $27,500. The number of sales peaked in 2021 at 84 with an average of $180,324; a high of $625,000 and a low of $40,000. In 2023, there were only 34 sales but an average of $189,920; a high of $620,000 and a low of $60,000. Two far reaching changes play into these statistics. One is the major escalation of building costs and the other is the time it takes to build a new home.
The graph above shows all sales in Santa Fe reported to the Multiple Listing Service. As you can see, sales are down, but average and median prices are up. This is clearly a product of too little supply meeting too much demand. This continues to drive many people who work in Santa Fe to locate in Albuquerque and Rio Rancho. Some are buying here and adjusting the size of the home they consider or changing their other criteria. With the inventory of homes for sale as low as it is and driving prices up to new levels, the situation can be good for sellers, but a difficult problem for buyers.
I’m always asked “Where are our buyers coming from?” Our records of Sotheby’s sales show the continuation of a long term tend with Texas leading the pack. In recent years, California has always been number two, but right now it’s replaced by Colorado!
Santa Fe and Las Campanas in particular have a charm that can’t be repeated elsewhere. Let’s welcome all of our friends!