Tight inventory sealing deal for homebuyers in Santa Fe
Gain attributed to baby boomers downsizing and better prospects for those in 20s, 30s
Home sales inside the Santa Fe city limits surged 26 percent in the first three months of the year as inventory declined and buyers moved to lock in their purchases.
Real estate agents said well-priced homes inside the city are selling quickly as baby boomers look to downsize and buyers in their 20s and 30s are in better financial shape and can finally afford a house.
“Inventory is especially tight,” said Melissa Pippin-Carson, a broker with Keller Williams Santa Fe and president of the Santa Fe Association of Realtors. “Buyers are realizing the market is picking up quickly and they need to decide fast.”
Some properties are selling sight unseen, she said, with buyers making offers based on photos and internet marketing, as well as broker recommendations.
But data also show a discrepancy between closer-in city neighborhoods and other areas of Santa Fe County.
Closed sales for January, February and March inside the city reached 196, up from 155 a year ago. That’s a boost of 26 percent, according to the Realtors association. Closed sales for the rest of the county, except Eldorado, dropped 2 percent.
The community of Eldorado saw an especially strong sales quarter, with closings increasing to 40 from 26 a year ago — an increase of more than 50 percent. The median sales price, however, remained flat at $346,500.
Philip VanderWolk, a broker with Santa Fe Properties, said Eldorado remains one of the most affordable neighborhoods for those wanting larger lots in a community that is covenant controlled with a homeowners association.
“With the exception of Eldorado, there’s not much affordability in the county anymore,” he said. “Eldorado is one of the most active markets around at this point.”
The median price of a closed sale inside Santa Fe climbed to almost $330,000 in the first quarter of 2017 compared with last year. The median price in the unincorporated area, meanwhile, was about $400,000.
Pippin-Carson said retiring baby boomers who want to be within walking distance of many city amenities are helping to push sales of homes inside Santa Fe. “People who are downsizing, baby boomers really want that
walkability,” she said.
Vander Wolk also attributes the rise of sales inside the city to an emerging generation of younger homebuyers who have better jobs today because of the stronger national economy. They are looking for homes in older neighborhoods that are solid investments.
“We have clients in their 20s and 30s. They’re looking for homes that are going to be a good investment,” he said. “They’re happy with 1,400 to 1,700 square feet, but they all want storage space or a garage for all their ski or snow shoes or sports gear. I didn’t think this type of buyer existed in Santa Fe. It’s healthy for the economy.”
Some of these younger buyers work at Los Alamos National Laboratory, he said, “but don’t want to live in Los Alamos and are now part of Santa Fe.”