In­ven­tory down, hous­ing needed


It has been touted in the me­dia that the Santa Fe real-es­tate mar­ket is hot. All num­bers point to a pos­i­tive uptick in sales and tight in­ven­tory is push­ing prices up­wards in many neigh­bor­hoods. The Santa Fe As­so­ci­a­tion of Re­al­tors re­cently pub­lished its first-quar­ter mar­ket sta­tis­tics and this year is shap­ing up to be a record-set­ter.

The mar­ket over­view tells us that new list­ings are down 10 per­cent from this same time last year and at their low­est level in three years. Be­cause our pend­ing sales are also up by over 12 per­cent, this be­gins to feel like an in­ven­tory cri­sis as we see our sup­ply of homes fall from­six months’ worth in 2017 to slightly over four months’ at present. Due to in­creased de­mand and low sup­ply, it only fol­lows that the me­dian sales price has in­creased by 7 per­cent to $335,784, which has caused our hous­ing af­ford­abil­ity in­dex to fall to a low of 85. That means that the me­dian house­hold in­come was only 85 per­cent of what is nec­es­sary to qual­ify to pur­chase the­me­dian-priced home un­der pre­vail­ing in­come rates.

Look­ing by area, closed sales in the north­east sec­tor of the city are slightly down about 6 per­cent from this same time last year. The me­dian sales price, how­ever, jumped al­most 29 per­cent from $685,000 to $880,000. North­west-city sales in­creased slightly from 17 to 19 this past quar­ter of 2018. The me­dian sales price here jumped also from $320,000 in 2017 to $410,000. The East­side and South Cap­i­tal ar­eas have stayed con­sis­tent with roughly 36 homes sold. The me­dian price dropped from $615,000 to $593,500. The South­west city quad­rant had an in­crease in sales of 13 per­cent from 108 homes sold first quar­ter of 2017 to 122 homes in 2018. The me­dian sales in this area also climbed by 7 per­cent from $245,000 to $263,200.

The num­bers in Santa Fe County out­side the city lim­its are not as rosy but over­all still strong. The Te­suque and north county ar­eas had a slight de­crease in sales, but the me­dian sell­ing price jumped from $359,000 to $599,000, aided sig­nif­i­cantly by the hous­ing short­age oc­cur­ring in Los Alamos. North­west county sales were down just slightly from 41 sales same time last year to 39 with only a 2 per­cent in­crease in sell­ing price to $785,000. In the south­east county, sales were down by 10 per­cent from 2017 but prices did in­crease here to a me­dian sell­ing price of $421,000. The Com­mu­nity Col­lege District and the south­west county had a big in­crease in sales, up from 36 to 52 homes sold. The sell­ing price saw a 17 per­cent in­crease from $257,000 to $302,350. El­do­rado is suf­fer­ing froma lack of in­ven­to­ry­with sales down this past quar­ter by 22 per­cent from last year. The me­dian sales price stayed rel­a­tively flat at $349,000.

As we look at these num­bers and con­sider where we stand in Santa Fe, they re­ally do mir­ror much of what is oc­cur­ring in other parts of the na­tion, per­haps just not as alarm­ing. Much of the data shows us we are back to pre-bub­ble num­bers in terms of days-on-mar­ket and sell­ing-price-to-list-price per­cent­ages. How­ever, the in­ven­tory level of avail­able homes for sale in 2007, be­fore the crash, was more than 2,500 units. The re­ces­sion wiped out 10 years of con­struc­tion and nowwe need to act. Santa Fe needs to get busy stamp­ing new build­ing per­mits and defin­ing new ways to add more hous­ing to Santa Fe. As many parts of the coun­try are al­ready ex­pe­ri­enc­ing a hous­ing short­age, we need to be proac­tive in Santa Fe to keep the city af­ford­able and invit­ing.

Roger andMelissa are Re­al­tors at Keller Wil­liams. Melissa was the 2017 pres­i­dent of the Santa Fe As­so­ci­a­tion of Re­al­tors. Call them at 505-699-3112, email twicethe­selling­, or fol­low them on Twit­ter @Car­so­nandCar­son and at www. face­­so­nandcar­son.santafe­r­ealestate

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