Santa Fe News
Santa Fe experiences continues housing market gains18 Mar 2013 11:52 AM
Mirroring gains seen in many cities across the country, Santa Fe has started 2013 on a good note, with prices and sales rising and a shrinking inventory. According to the Daily Post, fewer distressed properties in and around Santa Fe County and growing consumer optimism have helped buoy prices for several months.
Declining inventory across the country could also be having an impact on the value of Santa Fe real estate, the source reports.
"Buyer traffic is continuing to pick up while seller traffic is holding steady," said Lawrence Yun, chief economist at the National Association of Realtors. "We've transitioned into a seller's market in much of the country."
Combined with historically low mortgage rates, this positive activity has helped put Santa Fe real estate - particularly luxury homes at the high-end of the market - in a strong position for 2013. According to a report from CNN, Santa Fe is among a small group of cities - including Billings, Montana, and Syracuse, New York - that are in strong positions going forward.
What may be the best news, however, is that these gains appear to be organic - unaffected by either an artificial bubble or a reactionary downward slide.
"2012 was the first year since 1997 that the housing market has resembled something [close to] normal," David Stiff, Fiserv's chief economist, told the source. "For the past 15 years, home price changes and sales volumes have either been boosted by a bubble mentality or crushed by crash psychology."
This sense of optimism is also supported by recent data. According to the New Mexican, using data from the Realtors Association of New Mexico, home sales across the state have risen for the previous 13 months. Home sales this January were 24 percent higher than they were last year, the source reports.