Happy New Year! Hope that you all had an amazing end of 2018. The Santa Fe Housing Market has had some changes compared to 2017. If you have been watching the housing market great if not we are glad to bring you a brief update to prepare for your Housing Investments in 2019. First if a brief introduction to New Mexico living and specifically the City Different that is Santa Fe. So let’s dive right into this article.
Santa Fe is the capital of New Mexico and the County seat of Santa Fe County. It is a hub of tourism and culture with a unique Spanish influence over every aspect of life of the locals, including architecture and food. Santa Fe is considered a highly desirable place to live in the country. It has a population of more than 82,000 people which is growing with each passing year. Santa Fe properties are in high demand among buyers because of the modern and very liberal New Mexico living.
Median home prices in Santa Fe have increased by 27% in the last one year alone. From a figure of $325,000 in 4th quarter of 2017, these prices climbed to a new high of $413,000 in the 4th quarter of 2018. This is the reason why Santa Fe housing market is considered extremely hot by the experts right now. What is interesting to note is the fact that median prices of properties in Santa Fe County decreased by 1% in the same period. Despite this impressive growth, Santa Fe recorded 5% less sales in this quarter as compared to 4th quarter of 2017. On the other hand, units sold in the County increased by 3% this quarter compared to the last quarter of 2017.
If you take a look at different types of housing units, you will find that sale of townhomes and condos fell by 5% in the last quarter of 2018. Overall 127 units were sold in this quarter whereas this figure was 134 in the last quarter of 2017. The median price of these units increased from $266,250 to $290,000, or 8%, in the same period. As far as land sales are concerned, Santa Fe real estate recorded an increase of 57% this quarter as compared to the last quarter of 2017. There were 72 land sales this quarter as compared to 57 in the 4th quarter of 2017.
As far as inventories are concerned, they registered a decrease of 14% in the last quarter of 2018. There were only 1015 properties on the market this quarter whereas this number was 1180 in the 4th quarter of 2017.
With record low inventories and increased prices, Santa Fe housing market has become much less affordable for buyers. With a recent rise in interest rates, mortgages have become costlier. In such a scenario, increase in land sales may be a result of investors trying to diversify their portfolios.
We hope that this info has been helpful for all of you and will be significant in how you decide to make your Santa Fe Real Estate investments for 2019. Don’t forget that if you need any help with your Property Management as we are Professional Santa Fe Property Managers and Real Estate agents. Make sure and share this info with your family and friends and for more great info like this just hit that subscribe button.