Bullish on Santa Fe real estate
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 email@example.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.