Bullish on Santa Fe real es­tate

Home - Santa Fe Real Estate Guide - - MORT­GAGE­MAT­TERS YOUR­MONEY’SWORTH - FRAN­CIS PHILLIPS

Two re­cent re­ports show that Amer­i­cans are feel­ing more op­ti­mistic about the U.S. econ­omy. First, the Univer­sity of Michi­gan’s Sur­veys of Con­sumers states: Con­sumer op­ti­mism reached the high­est level in the past decade in the Jan­uary 2015 sur­vey... Con­sumers judged prospects for the na­tional econ­omy as the best in a decade, with half of all con­sumers ex­pect­ing the eco­nomic ex­pan­sion will con­tinue for an­other five years. The an­tic­i­pated strength in the over­all econ­omy has been ac­com­pa­nied by more fa­vor­able in­come and em­ploy­ment ex­pec­ta­tions.

Sec­ond, more young adults ap­pear to be mov­ing into their own res­i­dences. A re­cent cen­sus re­port shows that house­hold for­ma­tions grew from -205,000 in De­cem­ber 2013 to more than 2 mil­lion in De­cem­ber of 2014. This is an as­ton­ish­ing 1,076 per­cent pos­i­tive change, year over year, and well above the long-term aver­age of +1.147 mil­lion.

The econ­omy is def­i­nitely im­prov­ing, and, more im­por­tantly, Amer­i­can con­sumers are be­gin­ning to feel much more con­fi­dent. This should lead to a very ro­bust na­tional real es­tate mar­ket in 2015.

I am bullish on Santa Fe real es­tate. In ad­di­tion to my per­sonal home, I own va­ca­tion ren­tal prop­er­ties. Why? Santa Fe con­tin­ues to be a top va­ca­tion desti­na­tion, and va­ca­tion ren­tals are a very pop­u­lar op­tion for vis­i­tors. Santa Fe prac­ti­cally mar­kets it­self – with tremen­dous sup­port from na­tional pub­li­ca­tions and polls. Con­sider the fol­low­ing:

In “Amer­ica’s Fa­vorite Cities 2013,” Travel + Leisure read­ers ranked Santa Fe #1 for Cul­tural Get­away #3 for Peace and Quiet #4 for Christ­mas #5 for So­phis­ti­cated #6 forWeather In the “2014 Read­ers’ Choice Awards,” Condé Nast Trav­eler read­ers ranked Santa Fe the #10 city in theWorld and #2 in the United States.

Santa Fe has fea­tured in many more polls, in­clud­ing:

• Top 10 Moun­tain Bike Desti­na­tions in North Amer­ica ( Sin­gle­tracks)

• 9 of Amer­ica’s Best Farm­ers’ Mar­kets ( Sher­man’s Trav­els)

• 10 Great Places to Live ( Ki­plinger’s Per­sonal Fi­nance)

• Amer­ica’s Best Cities for Gay Travel ( Travel + Leisure)

• Fa­vorite Iconic Amer­i­can Streets ( USA To­day 10 Best) • 10 Best Foodie Cities (Liv­abil­ity.com) Va­ca­tion­ers love Santa Fe so much that our “high sea­son” is al­most year-round now. Con­sider the draw of Spring Break, In­dian Mar­ket, Span­ish Mar­ket, the Folk Art Mar­ket, Fi­es­tas, the Al­bu­querque In­ter­na­tional Bal­loon Fi­esta, Wine and Chile Fi­esta, Ski Santa Fe, and the tra­di­tional hol­i­days such as Thanks­giv­ing, Christ­mas, New Years, Me­mo­rial Day, La­bor Day and other three-day week­ends. We are pop­u­lar!

Is this a good time to buy Santa Fe real es­tate? Here are some sta­tis­tics to con­sider. From the 4th Quar­ter of 2000 to the 4th Quar­ter of 2014, the value of sin­gle-fam­ily homes in Santa Fe city/ county (com­bined) in­creased by over 51 per­cent. Com­par­ing 3rd Quar­ter 2013 to 3rd Quar­ter 2014, states around New Mex­ico ex­pe­ri­enced home-price in­creases of 6.5 to 7 per­cent, while New Mex­ico prices in­creased only 1.2 per­cent. I be­lieve there are good op­por­tu­ni­ties here.

If you’d like to learn­more about buy­ing Santa Fe ren­tal prop­er­ties for long-term leases as well as short-term/va­ca­tion ren­tals, I host work­shops, shar­ing ac­tual ex­am­ples with cur­rent fi­nan­cials, at my of­fice on the first Tues­day of the­month. Email me at fphillips@fcbmtg.com if you would like to at­tend.

Fran­cis Phillips (982-3400) is se­nior mort­gage loan orig­i­na­tor with First Choice Loan Ser­vices Inc. in Santa Fe. He has served as di­rec­tor of busi­ness de­vel­op­ment for na­tional mort­gage com­pa­nies. He and his mort­gage part­ners have funded and built three homes for Santa Fe Habi­tat for Hu­man­ity.

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