I am pleased to report that the momentum achieved in the first two quarters of 2016 continued at a robust pace throughout the third quarter of the year. According to the Santa Fe Association of Realtors MLS, both average and median sales prices made healthy gains and the number of units sold increased while days on market declined as compared to one year ago.
- Overall closed sales were up 3.3% through the third quarter of 2016 compared to same time period in 2015 according to the MLS. The bright spots of the Santa Fe residential market included activity in the $500,000 to $749,999 price band which saw a 9% increase in units sold as well as the $1M-$2M price band which reported a 23.6% increase in unit sales from one year ago.
- Days on market throughout the quarter contracted in all price sectors with the exception of the high end of the market ($2M+). That particular sector of the market saw an 18.6% increase from one year ago.
- Closed sales in the high end of the market have remained flat year over year.
A number of factors may positively impact the final quarter of the year. This includes a growing number of boomers who are currently looking for retirement homes in the Southwest and a growing number of millennials who are reaching home buying age, and in addition, there may be the continuation of historically low interest rates. A recent article in the Financial Analysis and Commentary section of the Wall Street Journal concluded that current market factors don’t preclude the Fed from raising interest rates later this year, further rate increases will come only gradually. That bodes well for real estate sales and purchases. “The era of low U.S. interest rates isn’t close to ending,” concluded Justin Lahart of the Wall Street Journal. (page B-12, October 8-9, 2016, WSJ). That conclusion, if it remains true, is good news for the real estate industry, in general,
and for Santa Fe in particular.
Click here for the Third Quarter 2016 Market Update Report.
Click here for Sotheby’s International Realty Significant Sales Report.
My hope is that you find this update helpful and informative, with links to articles and market trends. If you are in the market to buy or sell or know someone who is, please allow me to be of assistance!