Posts
First of all, it's been some time since I posted on my blog and I apologize for that. Things have actually been very busy, for which I am very thankful.
If the local newspaper were all you were reading, you'd think that nothing was selling in Santa Fe. While the market is slow, properties are indeed selling. In fact, 313 properties in Santa Fe County have sold over the past two and a half months. That's exactly the same amount of homes that sold in the same time period for 2008. Could this be a signal that our market has leveled off and not declining? The devil is in the details!
9/1/2008 to 11/17/2008
Median Sales Price $379,650*
Sales Price % of List: 92.63%*
Median Days on Market: 162*
9/1/2009 to 11/17/2009
Median Sales Price: $325,000*
Sales Price % of List: 95.24%*
Median Days on Market: 137*
The trend is that the marketing time is shortening with fewer days on the market, properties are selling almost 3% closer to list price than the same time period last year, but the median price has decreased almost $45,000. The median sales price is not as much of a shocker given the 1st-Time Homebuyer Tax Incentives. In our market, most 1st-time homebuyers are buying under $350,000.
With so many properties to choose from, the ones that stand out and sell are the ones that are priced right and present a good value. I've always said, "priced right is half sold." It couldn't be more true in today's market!
We had a guest speaker from Sotheby's Mountain Region at our office meeting this morning and he shared some really good insight. In addition to the normal stats and figures, he said that just as "Cash is king, now pricing is king to get properties sold in the current market."
If you're a seller, pricing above the market is a waste of time. "Priced right is half sold" is the way to go. Put yourself in the buyer's shoes. If you were looking for a home, you'd be looking for the same thing--price and value. And more importantly, look at your home relative to the properties selling around you (the key being selling, not active listings). Look at your house from the buyer's perspective, because in a buyer's market, the buyer is always right!
If you're a buyer, know that just because there are a lot of properties on the market, doesn't mean they are all a good value. It's my experience that of all the listings, about 10 to 15% are "quality listings", meaning that they are a good value, in relatively good condition and priced right. Trying to weed through the abyss of listings is why you want to work with a broker who knows the inventory. Looking at the quality listings will give you the right take on the market.
As we wind down 2009, we are seeing pricing close to what we saw six to nine years ago! Don't miss this window of opportunity! If you find a property you want, go for it. Or some other savvy buyer will.
*Data deemed reliable, but not guaranteed.
