R.E. market: Q2 report card
Spouses selling Houses
Much has been said about our current real-estate market in the press and perhaps some comments were taken out of context. With the publication of our 2nd-quarter statistics by the Santa Fe Association of Realtors, we thought we would put in our two cents to further clarify this unusual real estate market.
We have many sellers who are mystified because they thought they read it was a seller’s market and that many properties were selling above listed prices and yet they have not had a showing in weeks. We want to say that while this has happened in several cases, it is not the norm. Certain neighborhoods are experiencing very limited inventory and when a property comes to the market in that area and its price and condition are in line with current market comparables, that property may sell very fast. If sellers try to take advantage of the inventory and price above what is presently selling, that house may sit for a while.
Overall, the inventory of homes for sale continues to decline despite the 5 percent increase in new listings for the 2nd quarter of 2016. Pending sales have declined sharply this past quarter over 2015 and that decline is inconsistent with normal 2nd-quarter stats. This is the first decline in 2nd-quarter pending sales activity since 2007 and we believe that is due to the lack of inventory and to the buyer who is extremely price-sensitive. If this buyer sees the house he wants and determines the price is right, he is ready to pull the trigger the first day on the market. But, if new inventory comes up that appears well above the norm, he just sits and waits.
Certain neighborhoods are faring better than others this summer selling season. The Northeast City quadrant experienced a 7 percent appreciation in price this past quarter over 2015 with the median sales price hitting $730,000. The Northwest City had a small bump in price with the median sales price up 2 percent, but sales have declined over 30 percent from last year with only 16 homes sold. The South Capital and Eastside areas experienced a decline in selling price. Here the median price fell from $560,000 in 2015 to $475,000 but sales remain steady. The Southwest City area had a nice increase in selling price up from $228,000 to $246,500 for this past 2nd quarter but sales declined by almost 9 percent.
In the county, the Tesuque area had a large increase inmedian selling price to $635,000, compared to $416,000 for the same time last year. Sales remain steady. The Northwest County quadrant remains unchanged in price for this second quarter with a median price of $760,000. Sales here have declined 16 percent from last year’s 2nd quarter. The Old Las Vegas Highway area experienced an increase in median sales price to $415,000 but a decline in sales of almost 10 percent. The Community College area had a 10 percent increase in sales over same time last year but prices remained relatively unchanged at $325,000. Eldorado experienced a large gain inmedian selling price, up from $310,000 for 2nd quarter in 2015 to $431,875, but sales decreased by almost 13 percent.
In short, the real-estate market is very good but is price-sensitive. Interest rates remain at record lows and buyers are in the market now. As a seller, if you price wisely chances are good you’ll be packing by the end of the month.
Roger and Melissa are Realtors at KW. Call them at 505-699-3112, email email@example.com, or follow them on Twitter @CarsonandCarson and at www.facebook.com/carsonandcarson. santaferealestate
MELISSA PIPPIN- CARSON ROGER CARSON