Real Estate Market Insights: Barker Realty

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Real Estate Market Insights The Santa Fe Luxury Real Estate Market

Luxury Sales up 12% over 2015 $400.00 32

32

31

THE MARKET HAS SHIFTED INTO

HIGH GEAR

W

hile sales of luxury homes over $1 Million are softening across the United States, we’ve seen a 12% increase in year to date transactions compared to 2015. The real question for the balance of the year is whether the upcoming elections will result in discretionary money sitting on the sidelines and slowing this market down. Real estate markets are primarily driven by growth in population and salaries. While those factors continue to elude Santa Fe, the majority of our luxury sales come from our feeder markets who’s economies are robust… and continuing to grow busy and hectic. Santa Fe offers a compelling quality of life at very reasonable prices which fuels this market.

Low inventory is fueling a fast-paced market. Let one of our Expert Brokers steer you in the right direction.

$323.00

$332.00

$339.00

3Q15

4Q15

$340.00

$250.00

30

30

$200.00

29

$150.00 28

28

$100.00

27

26

$50.00

2Q15

3Q15

4Q15

1Q16

2Q16

$0.00

2Q15

1Q16

2Q16

Luxury Sales

Luxury Selling Price per Sq. Ft.

The First and Second Quarters are traditionally the slowest of the year in terms of closings. We have seen a significant increase this Quarter in pending sales.

The average selling price per square foot has continued to remain fairly flat over the past several years. However, we are witnessing significant increases in this number in the sale of new homes.

95.00%

300

94.00% 274

250 242

248

94.00%

94.11%

1Q16

2Q16

93.00% 92.00%

219

200

92.00%

91.00%

202

89.00%

88.00%

87.00%

Dollar Volume

86.00%

50

Months of Inventory

89.00%

88.00%

100

Sold

14%

85.00% 0

12% 10% 8% 6% 4%

2Q15

3Q15

4Q15

1Q16

2Q16

84.00%

2Q15

3Q15

2006 Q4 2007 Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4

2012 Q4 2013 Q4 2014 Q4

2015 Q4 2016 Q2

DBarker@SantaFeRealEstate.com LBarker@SantaFeRealEstate.com 505 992 3563 505 490 2626

530 S. Guadalupe St., Santa Fe • 505 982 9836 • SantaFeRealEstate.com

4Q15

Luxury Homes for Sale

Luxury Original Price vs. Selling Price

One-third of the luxury homes for sale are larger than 5,000 square feet yet account for twenty five percent of the sales. Many luxury buyers are shying away from larger homes compared to years past.

The luxury market is even more price sensitive than the balance of the market. Under $1M, homes are selling for 96% of the original asking price compared to 95% over $1M.

For real-time neighborhood specific data & statistics, visit SantaFeRealEstate.com/Market-Insights

2% 0%

31

150

Homes For Sale

16%

$300.00

90.00%

Luxury Sales Trends: 10-Year History 20%

$392.00

$350.00

32

*Data source: All information contained herein is derived from the Santa Fe MLS and is believed to be accurate.

The Locals’ Choice for over Fifty Years!


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