Santa Fe Market Watch: Home Prices to Increase in Santa Fe

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"New Mexico may have the longest lasting booming real estate market in the nation,"

Yet another great reason to move to New Mexico.

From the New Mexico Business Weekly:

No. 1 nationally: ABQ homes keep appreciating

Good news for New Mexico Homeowners! "New Mexico may have the longest lasting booming real estate market in the nation," and "New Mexico is one of the Sunbelt states that is still seeing unprecedented growth. People want to move to warmer climates and they doing it in droves."

Read the full article here.

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Real Estate in Santa Fe, NM

Springtime in Santa Fe and Prices Remain Strong!

Spring was here...and now it's gone! We had a few weeks of beautiful sunny weather in the 70's. There is no sight more beautiful than seeing the trees and flowers slowly bloom in the high desert. Bushes that look like dead sticks suddenly have green leaves popping out. That was then. This is now. Winter has returned to the land of enchantment! It was much appreciated last weekend, since Sunday was the last day of ski season. The weather cooperated by dropping another 4 inches of powder on top of a substantial base. Spring came back on Tuesday and Wednesday, and today it's cold, cloudy and wintery with more snow on the way! Such is life in the mountains - the weather can be very unpredictable.

The real estate market here continues to be very strong. Santa Fe did not suffer the huge downturn that other areas experienced over the last year. We did have some corrections to bring things back to a normal state of growth instead of the hypergrowth we were experiencing - which was not sustainable. I deal mostly with buyers from around the US and there is clearly a strong, consistent interest in Santa Fe Real Estate - especially with retiring baby boomers. For those that are tired of the big cities, traffic and air pollution, this place seems like a slice of heaven.

If we look at all sales since November, 2006 until now, on average, homes are selling at very close to list price. Good to know if you are planning on buying a property in Santa Fe. Many people come here and make lowball offers because they assume the Santa Fe market is the same as their home market. As with any large purchase, it's always best to do some homework first!

Read about our first quarter results here: http://sfar.com/documents/HouseStatsNewRelApr07.pdf

Search Santa Fe MLS Listings here:

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U.S. HOUSE PRICE APPRECIATION RATE STEADIES

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FOR IMMEDIATE RELEASE March 1, 2007

Office of Federal Housing Enterprise Oversight (OFHEO) NEWS RELEASE CONTACT: Corinne Russell (202) 414-6921 Stefanie Mullin (202) 414-6376

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U.S. HOUSE PRICE APPRECIATION RATE STEADIES

WASHINGTON, DC – The rate of home price appreciation in the U.S. remained steady in the fourth quarter of 2006, extending a general trend of deceleration begun earlier in the year. Home prices, based on repeat sales and refinancings, were 1.1 percent higher in the fourth quarter than they were in the third quarter of 2006. This is slightly above the revised growth estimate of 1.0 percent from the second to the third quarter. Prices in the fourth quarter of 2006 were 5.9 percent higher than they were in the same quarter in 2005.

Price appreciation in 2006 was substantially smaller than the tremendous price gains of recent years, which ranged from 7.4 percent in 2002 to 13.2 percent in 2005. The figures were released today by OFHEO Director James B. Lockhart, as part of the House Price Index (HPI), a quarterly report analyzing housing price appreciation trends.

“These data show that, on the whole, prices are still rising, albeit at a much slower pace,” said Lockhart. “This suggests that house price appreciation is, for now, more in line with historical norms.”

House prices grew faster over the past year than did prices of non-housing goods and services reflected in the Consumer Price Index. House prices rose 5.9 percent, while prices of other goods and services, excluding shelter, rose 0.9 percent.

“The continuing strength in the economy and decreasing interest rates for borrowers prevented a harder landing in housing markets during the second half of last year,” said OFHEO Chief Economist Patrick Lawler. “Last quarter, though sharper drops occurred locally, no state had average price declines of as much as one percent,” Lawler said.

Significant HPI Findings:

Highest and Lowest Appreciation:

1. The states with the greatest rates of appreciation between the fourth quarter of 2005 and the fourth quarter of 2006 were: Utah (17.6%), Wyoming (14.3%), Idaho (14.0%), Washington (13.7%), and Oregon (13.5%). The states with the lowest rates of appreciation for the same period were: Michigan (-0.4%), Massachusetts (0.5%), Ohio (1.0%), Indiana (2.3%), and Minnesota (2.5%).

2. The Metropolitan Statistical Areas (MSAs) with the greatest rates of appreciation between the fourth quarter of 2005 and the fourth quarter of 2006 were: Bend, Oregon (21.4 %), Wenatchee, Washington (20.9%), and Provo-Orem, Utah (19.9%). The MSAs with the lowest rates of appreciation for the same period were: Kokomo, Indiana (-5.3%), Santa Barbara-Santa Maria- Goleta, California (-4.2%), and Jackson, Michigan (-3.9%).

3. Of the 282 cities on OFHEO’s list of “ranked” MSAs, 256 had positive four-quarter appreciation, 25 had price declines, and prices were unchanged in one city.

The complete list of state appreciation rates can be found on pages 13 and 14.

The complete list of city (MSA) appreciation rates is available on pages 26 - 45.

Other Notable Results:

1. Annual (four-quarter) rates of appreciation slowed in all nine census divisions relative to the third quarter.

2. In the Pacific Census Division, quarterly appreciation is decelerating rather dramatically. Prices grew 0.4 percent between the third and fourth quarter, nearly one full percentage point below the growth rate in the prior period.

3. California saw quarterly appreciation rates that were negative in 21 of the 26 cities on OFHEO’s list of “ranked” metropolitan areas.

4. Nevada, which had the highest statewide appreciation in the nation two years ago, is now ranked 40^th among the states with four-quarter appreciation of 3.9 percent.

5. Prices in and near areas affected by Hurricane Katrina such as: New Orleans-Metairie-Kenner, LA; Baton Rouge, LA; Houma-Bayou Cane-Thibodaux, LA; Gulfport-Biloxi, MS; Hattiesburg, MS; Pascagoula, MS; and Mobile AL; all showed double-digit increases in 2006, indicating continuing supply shortages.

6. The Mountain Division continues to show relatively robust price growth with higher quarterly and annual appreciation rates than in any other census division. However, the price trends vary widely within the division with quarterly appreciation exceeding 2 percent in Wyoming, Utah, Idaho and New Mexico. Arizona, meanwhile, experienced much lower quarterly appreciation of 1.0 percent, and Nevada prices declined 0.2 percent.

Purchase-Only Index

An index using only purchase price data indicates less price appreciation for U.S. houses than the HPI. A purchase-only index increased 4.1 percent between the fourth quarter of 2005 and the fourth quarter of 2006, compared with 5.9 percent for the HPI. The purchase-only index increased 0.5 percent (seasonally-adjusted) between the third and fourth quarters of 2006, compared with 1.1 percent for the HPI. The difference between the two appreciation measures may reflect differences in the types of homes refinanced versus those purchased or changing biases in the appraisal valuations and different proportions of appraisal and sales price data. (For more information see page 7).

Highlights

This quarter’s Highlights compares recent price trends in close-in city suburbs to those in more distant communities. The analysis suggests that in New York, Los Angeles, and Miami, appreciation rates in distant suburbs and the “exurbs” have decelerated much more rapidly than in the city center. In other large cities, the housing market slowdown has affected close-in and distant suburbs more uniformly. A brief analysis of the three cities with contrasting urban and suburban price trends suggests that those cities: (a) have high home prices relative to incomes and (b) do not offer affordability relief for individuals willing to make long commutes.

Background

OFHEO’s House Price Index is published on a quarterly basis and tracks average house price changes in repeat sales or refinancings of the same single-family properties. OFHEO’s index is based on analysis of data obtained from Fannie Mae and Freddie Mac from more than 32 million repeat transactions over the past 32 years. The more limited “purchase-only” index is based on 4.7 million transactions.

OFHEO analyzes the combined mortgage records of Fannie Mae and Freddie Mac, which form the nation’s largest database of conventional, conforming mortgage transactions. The conforming loan limit for mortgages purchased in 2006 and 2007 is $417,000.

This HPI report contains four tables: 1) A ranking of the 50 States and Washington, D.C. by House Price Appreciation; 2) Percentage Changes in House Price Appreciation by Census Division; 3) A ranking of 282 MSAs and Metropolitan Divisions by House Price Appreciation; and 4) A list of one-year and five-year House Price Appreciation rates for MSAs not ranked.

Also, beginning with this release, index values are included for two new metropolitan areas: Lake Havasu-Kingman, Arizona and Palm Coast, Florida. These cities were recently given status as Metropolitan Statistical Areas (MSAs) by the Office of Management and Budget.

OFHEO’s full PDF of report is at: www.ofheo.gov/media/pdf/4q06hpi.pdf. Also, be sure to visit www.ofheo.gov to use the OFHEO House Price calculator. Please e-mail ofheoinquiries@ofheo.gov for a printed copy of the report. The next HPI report will be posted May 31, 2007.

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OFHEO's mission is to promote housing and a strong national housing finance system by ensuring the safety and soundness of Fannie Mae and Freddie Mac.

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Santa Fe named #4 Most Exciting City in US!

More than 300 Virtuoso travel specialists weighed in when they asked:
What are the most exciting cities in the US? Only New York, San Francisco and Chicago ranked higher. Well, all I can say is, we have FAR less traffic than those cities, fewer people and much better air! Read more about it here.

This is a picture from the very top of Tesuque Peak at Ski Santa Fe. That's how I spent the day yesterday - skiing in one of the most beautiful spots in the world, with excellent, powder conditions. It was a brisk 10 degrees...nothing some hand warmers couldn't take care of! They have an unbelivable Chicken Chile stew for lunch. Served with a hot tortilla...nothing tastes better at 12,000 feet.

The constant snowstorms here (every weekend since December) are making it somewhat challenging when bringing clients around to see houses. Good snowboots are a necessity, and a good sense of humor is a must. Oh...and a 4 wheel drive is essential.

www.RealEstateinSantaFeNM.com

Let it Snow!

Careful what you wish for! After a snowless year last year, we were really hoping for some good snow this year - for skiing purposes of course. Well, it has been snowing now for 2 1/2 days straight, and so far we have over two feet of snow. And, it is still snowing with more to come. All the major highways are closed. Santa Fe is not great when it comes to plowing - so many of us are stuck in our homes. But, it's a forced rest - and kind of nice actually. Here's what it looks like right now. I've told many people that it hardly ever snows in Santa Fe...and when it does, you never need a shovel since it melts by noon. Oh well...sorry!

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Day Trips from Santa Fe - Tent Rocks

If you are not from New Mexico, chances are you may have never heard of Tent Rocks. As you can see by the picture, it's an awesome site of ancient rocks, worn down by the elements over millions of years. A short hike will take you to the top, where you can look out over the valley and see an array of strangely shaped rocks and outcroppings. Only 45 minutes from Santa Fe, it's definitely worth a trip.

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Ski Santa Fe Lands in Top 20

Ski Santa Fe lands at #14 in Conde Nasts "Top 20 Ski Resorts". Read about it here. Ski season opens on Friday of this week!!! If you have never skiied at Ski Santa Fe - now is the time to think about a trip. The views alone are enough to make you want to return again and again. Not to mention the great skiing - for beginners, intermediates, and advanced. Oh...and they have one of the best Green Chile Chicken stews in town!

www.RealEstateinSantaFeNM.com

New Mexico Ranks 12th in House Appreciation

New Mexico was ranked 12^th among the 50 states for the rate of increase in house appreciation for the period ended March 31, 2006. For period ended June 30, 2006 Santa Fe is ranked 81 among the 275 metropolitan statistical areas for percent change in house prices with MSA rankings. Read the full article here:

http://www.ofheo.gov/HPI.asp

In other news - it finally snowed in Santa Fe!! We have about 3 inches on the ground, and it looks like a winter wonderland. The ski basin got 7 inches, and they are making snow fast and furiously. Let it snow!

For more Santa Fe real estate news and listings, go to:

http://www.RealEstateinSantaFeNM.com

Thanksgiving in Santa Fe

The weather here is as delightful as can be for the Thanksgiving holiday. Every day has been sunny, mild, in the mid 60's with cool mornings and cool evenings. If you plan to visit Santa Fe, be sure to dress in layers. Unfortunately, there has been no snow, and so the Santa Fe Ski Basin will not open on Thanksgiving as planned. The reason there is a picture of snow here (which by the way is from the top of the mountain from a snowier year!) is wishful thinking.

On another note, the City of Santa Fe is proposing a Real Estate Transfer tax. The prop0sal has met with a good deal of opposition. Read more about it by clicking on the link.

And finally, a day in the life of a realtor. Being a realtor has it's share of pros and cons. The pros - all the wonderful people you meet. All the great real estate you get to see. The ability to work for yourself, make your own schedule, and answer to no one but yourself. In Santa Fe, the sheer beauty you see when driving just about anywhere.

And then there are the cons. Some of the people you meet are just whacko. Some guy came into town last week because he had decided to move to Santa Fe and start his life over (his wife kicked him out of the house for various reasons - red flag number 1). It was a busy week for me, but I carved out time for him - since it seemed that he was eager to buy a house. I spent over 3 solid days with him - arranging over 20 houses for him to see, and driving him from house to house. His reaction: "too new, too old, too funky, too modern, and too nice" (on the latter, he told me he did not deserve a house this nice - red flag number 2). The entire time, he was a bundle of contradictions. "I like Santa Fe, I don't like Santa Fe, where are all the single women?" The guy was hardly a catch I might add.

Finally, after the third day, he decided that the next day he would like to see two of the houses again. I told him fine, but only if he had made the commitment to actually move here. He said that yes, he wanted to go back and choose between the two houses. I told him that I would pick him up the next morning.

When he got in the car he started saying "I don't know if I like Santa Fe....I couldn't find a coffee shop...and I went to a bar last night and there were hardly any people there". Well now, there is a good reason to decide whether to move somewhere. Despite his comments, we went to the two houses. The listing agents for both houses met us there, and talked up the houses. He really liked the first one, and realized it was about the nicest house you can get in his price range. I finally let him off at his motel (what a sad sack this guy was...) and he said "I'll have to think about it. I can't make decisions very fast." I thought to myself "I don't think you can make any decisions period!" He was sucking the life right out of me.

I went home, glad to have the afternoon off. An hour later he called me. "OK" he said, "I want to buy the first house". "Are you sure?" I asked. "Yes - let's do it RIGHT NOW." I met him at my office an hour later. Two and a half hours later, the sales contract was signed by him. I faxed it to the listing agent and went home. There was no more time left in the day for me to salvage. But hey...I just wrote a contract - so I was feeling good. Yes, the time I had spent with him had been painful, but it looked like it would be worth it in the long run.

The next morning, he was scheduled to leave. I was gone all morning showing properties to a delightful couple (what a difference!). I was out in the boonies, where my cell phone had no coverage. As I was driving back to Santa Fe, marveling at how beautiful everything was, (as I always do), I saw that my phone had a message. It was the sad sack. "Hopefully you didn't present the offer yet because I think I have changed my mind...I'm not sure I want to live in Santa Fe anymore. Can you hold on to the contract for a few days - I need to think about this." I guess I was not surprised. I was just blown away that he could waste my time like that - over 3 full days - when in reality, he was never sure he was going to move here in the first place! How about making the decision first before bringing other people into your life and wasting their time?

I called him back. Told him the contract had already been faxed and we already had a counter offer. He had made up his mind though, and the fact that he had used me to squire him around town for days did not phase him. So...now he'll goes back to his dark, depressing studio apartment in another city and state - probably more depressed than when he got here, and feel bad because he was afraid to make a commitment.

Why do I share this? Realtors are people too! (well, most of them) We have lives and families and other responsibilities. But, I guess you need to be a realtor to really understand that. I will never get the time back that I wasted on this guy. Yes...I feel used and abused. But, once again, I learned a little more about human behavior.

Thanks for listening to my rant. After this whole thing happened, some locals told me some important things about Santa Fe. You do not choose Santa Fe - Santa Fe chooses you. And it also has a way of chewing up and spitting out the people who cannot truly appreciate the wonder that is the City Different.

I've lived in 5 countries and 4 states. There is no better place in the world as far as I am concerned than Santa Fe. There is a magic here that is intangible - but everyone who lives here can feel it.

www.RealEstateinSantaFeNM.com

October brings the balloon fiesta to Albuquerque. If you are lucky enough to have a cousin who lives there (I do!) you can drive down from Santa Fe the night before, and wake up at the crack of dawn to watch the mass ascension. It rained all night,but cleared up early in the morning just in time to see the balloons. There were hundreds of them. They come from all over the world for Albuquerque's clear air and perfect winds. It's quite a sight. Just another reason why living in this part of the country is so wonderful!
http://www.RealEstateinSantaFeNM.com

Another day in Paradise

Today is one of those glorious Santa Fe days that reminds me why I love this place so much. Cool temperatures. Clear blue skies. Whitecapped mountains. It just doesn't get any better. Driving around town today, seeing the mountains against the sky, seeing the hustle and bustle in the plaza - just makes me happy to be alive. This place is just so damn beautiful. At dawn. In the afternoon. At dusk. At night with the twinkling stars. How many places can you still see the Milky Way from?

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The leaves are turning

Every year I take a ride up to the top of Tesuque Peak (where Ski Santa Fe is located) to see the fall colors. The road winds up the mountain for 15 miles until it reaches the top. On the way up, you go through giant fields of aspen trees. The golden yellow aspen trees against the clear blue sky is an amazing sight. The leaves look like little silver dollars and make a gentle rustling sound with the wind.

This picture is from the top of the mountain - about 12,000 feet up. Talk about a nice picnic spot. The mountains in the distance are the Sandia (by Albuquerque) and the Ortiz mountains to the left (by Madrid). The beauty of this place never ceases to amaze me.

The rains have stopped for now. The days are clear and warm. The nights are cool and crisp. Winter is on the way.

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Fall in Santa Fe

It's that time of the year again. The aspens are turning yellow, orange and gold, and the air is crisp and clear. The mountains are snowcapped (skiing is right around the corner!). The mornings are cool, the days warm and the evenings even cooler. Just another reason why Santa Fe is such a wonderful place to live. Have I mentioned the skiing? Ski season starts around Thanksgiving at Ski Santa Fe. Most people don't realize that Santa Fe has a top notch ski area, and have some of the best snow makers and groomers in the country (for those rare winters when it doesn't snow - like last winter!). If you buy a seasons ticket in August, it will be half price. Need ski equipment? No problem. Santa Fe hosts a "ski swap" each year. It's chock full of last years' merchandise from ski store vendors from the southwest. Skis, boots, ski clothes, and everything else are available. The prices can't be beat. I digress. I meant to talk about fall, but fall always reminds me of winter, and winter means skiing!

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Retiring in Santa Fe

Santa Fe - a magnet for baby boomers. Most boomers start by saying "I'd like to retire early". I got a call the other day from someone who told me "I've paid my dues, and it's time for me to get out of the rat race". Whether one is ready to retire, or just dreaming about it, Santa Fe is a perfect choice for a better quality of life. Keep in mind - this is not South Florida. Retirees here are very active! And, they tend to look young and be in great shape. It's something about the air. Let's take a look at all the great things Santa Fe has to offer:

- Weather: About as close to perfect as one can imagine. 300 sunny days a year. No humidity. Beautiful seasons. Cool summer nights. Mild winters (with great skiing nearby!)
- Food: Being a chef in Santa Fe is akin to being a rock star. They even have a magazine here devoted to the local chefs. Food is taken very seriously here. The choices are numerous. The only thing they don't have yet is a great Thai restaurant.
- Shopping: Walking around the Santa Fe plaza, and down the streets around the plaza is a delight. The amount of boutiques and shops will dazzle you. Bring lots of money...you are sure to see things you like.
- Entertainment: Almost every restaurant and hotel here has live music regularly. Even the local pizza place and burrito place (Bumblebees has some great jazz!) In addition, there is the world famous Santa Fe Opera, as well as the Lensic Center for Performing Arts.
- Arts: It's no secret that Santa Fe is one of the art capitals of the world. Walk down Canyon Rd and peruse the many art galleries. Take in the numerous sculptures all over the city. It's overwhelming how much good art there is here!
- Physical Beauty: No matter where you go in Santa Fe, you can't help but notice the towering mountains that surround the city, and rise up in the distance. The vistas are awe inspiring.

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A Gray Day in Santa Fe

All of a sudden, the weather went from summer to fall. I actually wore a fleece this morning when I went on my bike ride. We're getting the remnants of the hurricane that hit Cabo. It's raining mostly in the south, but there are thick black clouds hanging over Santa Fe that look like they are laden with water.

Because Santa Fe has had a stronger than usual monsoon season this summer, there are flowers blooming everywhere. Fields full of wildflowers. Yellow and red flowers lining all the roads. They've seen flowers growing this summer that they have never seen before in Northern New Mexico! In the last two years alone, we have lived through a severe drought, one of the driest winters on record and one of the wettist summers on record. Go figure. But you know what? No matter what the weather here, it's ALWAYS beautiful. I read a great quote today: "The only people who don't complain about going home, are the people who live in Santa Fe." It's true.

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Short Term Rentals in Santa Fe

The debate continues. Read today's article in the Santa Fe New Mexican:
Task force endorses short-term rentals
http://www.freenewmexican.com/news/48582.html

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Air Conditioning in Santa Fe

I always find it amusing when people from out of state come to Santa Fe, and are shocked to learn that a good number of our homes do not have air conditioning. I guess when you are coming from Phoenix or the East Coast, it's hard to believe that one could live without AC. Well, this is just another reason why Santa Fe is so unique. Our days in the summer get warm, but very rarely is it hot. Humidity is practically nil here. There is almost always a breeze. At night, the temperature goes down 30 degrees, making it extremely comfortable. You can sleep with the windows open, smell the pinon, and hear the birds in the morning

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