REAL ESTATE MARKET INSIGHTS
Homes For Sale 250
234
233
1M-2.0M
1M-2.0M 2.0-3.0M
3.0M+
3.0M+
120
196
195
140
2.0M-3.0M
215 200
165
The Santa Fe Luxury Real Estate Market
Sales By Price Point 141
140
158
163
160
166
103
98
100
97
149
150
86 80
79
74
75
69
60
100
48
W
e hear about “Trophy” properties across the world selling for over 100 million dollars. There have been over a dozen of these sales since 2010 with five of them in the U.S.… but what we really want to know about is the Santa Fe luxury market and where is it trending?
SOLD!
First of all, let’s look at what defines the luxury market and what buyers are looking for? It is a combination of factors beyond price including location, convenience, privacy, quality (over quantity) and experiential for the owner. Christies International Real Estate categorizes Santa Fe as as a Lifestyle and Regional Resort Market with luxury pricing starting at $1,000,000 and exhibiting a strong mix of primary and secondary luxury residences.
302 Camino Cerrito, Santa Fe | $1,076,000 3 Bedrooms, 4 Bathrooms, 2,351 Sq. Ft | Offered by Stephanie Duran
40 52 50
0
47
25
25
2006
2007
20%
Homes For Sale Sold
16%
Dollar Volume Months of Inventory
14% 12% 10% 8% 6%
The graph to the left depicts the luxury market for each of the past 10 years as a percentage of the 10 year history. In 2006 - 8 we were exiting a strong market with declining sales and increasing inventory; 2010 - 2014 shows relative stability. The current market shows an exciting and strengthening market. Inventory is dropping, sales and volume are up, and finally prices are starting to increase. Once again, we see the Santa Fe real estate market follow other national markets but lagging several years behind.
4% 2% 0%
2006 Q4 2007 Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4
2012 Q4 2013 Q4 2014 Q4
2015 Q4
2016 Q1
48
33
33
2008
2009
42
33 23
29
2010
28
26
2011
2012
24
27
32 23 2013
2014
31
28
26
6
25
2015
2016
0
21
19
17
20
2006
4
4
4 2
2007
2008
2009
What $2.5M Gets You
10 2
2010
6
2011
12
13
12
10
2
3
2
1
2012
2013
2014
2015
3
1
2016
City
Location
New York, NY
East 79th St. Oak Pass Rd.
Price Per Sq. Ft. Over $1M
Sq. Ft. Acreage $/Sq. Ft.
List Price
~1200 Condo $2,079 $2,495,000 ~2700
0.24
$924
$2,495,000
$450
1.0M+ Poly. (1.0M+)
$437 $416
$412 $400
$375
$392
$387
$352
$350
$339
$332 $319
Miami Beach, FL
N. Bay Rd.
~3200
0.20
$780
$2,495,000
$300
Dallas, TX
Highland Park
~5590
0.17
$465
$2,599,000
$250
Santa Fe, NM
Camino Medianoche Las Campanas
~5700
5.9
$455
$2,595,000
$200
$308
$150
Years ago, Santa Fe used to be an expensive market compared to many other locations other than New York and Southern California. Santa Fe now offers very attractive values comparatively. The Sales price per square foot graph indicates an upward trend and is consistent with what we’ve seen take place in the last six months in the lower price ranges. Support for this trend is also seen with several new luxury construction projects coming out of the ground.
$100
$50
$0
2006
2007
2008
2009
President & CEO | 505 992 3563 DBarker@SantaFeRealEstate.com *Data source: All information contained herein is derived from the Santa Fe MLS and is believed to be accurate.
530 S. Guadalupe St., Santa Fe • 505 982 9836 • SantaFeRealEstate.com
8
Historically, the vast majority of luxury sales, 80% - 90% fall in the $1M - $2M category. This part of the luxury market has substantially recovered since 2006 and shows strong absorption with just over 1 year of inventory. Interestingly, over the past five years there have been as many properties for sale in the $3M + range as there have been between $2M - $3M. However, the number of sales between $2M - $3M is three and a half times greater. The $3M + market is what we call the RARE AIR category with multiple of years of inventory and continued weak sales.
Beverly Hills, CA
Luxury Sales Trends: 10-Year History
50
2010
2011
2012
2013
2014
2015
2016