Secondary and tertiary cities in southwestern states such as New Mexico have emerged among the best places to relocate within the U.S. For property owners and investors, the inbound migration means higher real estate prices.
In Santa Fe, the market has become so hot that there have been “more buyers than homes,” according to Barker Realty. The most avid buyers included those from Dallas, Denver, Los Angeles and Seattle.
As the second-oldest city in the U.S., Santa Fe’s appeal extends beyond its lucrative real estate industry. The metro area’s good climate, uncrowded facilities and overall quality of life have lured younger people to buy homes in the city.
This sophisticated design of home, located on Governor Dempsey Drive, boasts four bedrooms and four bathrooms with some of the most unique views in the prestigious Vista Encantada subdivision. (Barker Realty)
How To Sell Your Home In A Hot Market
The success of a luxury property sale primarily depends on the broker’s competence. You should find one with as much experience with different properties as possible.
For example, Barker Realty sold more than 1,000 properties in 2021 alone. Kyle Klain, Barker Realty’s chief operating officer, recently noted that winter did little to cool Santa Fe’s hot housing market.
Sellers should take note of three things to complete a transaction in the shortest possible time:
- Easy access to a home’s entrance
- Photos of your home during spring or summer
- Warm lights
Klain advises sellers to clear pathway obstructions before a house tour. While it can be tempting to take photos by yourself, a professional would know the best way to capture the home’s appeal.
Warm lights cast a friendly and welcoming atmosphere, especially in gloomy weather during the winter season.
If you’re still cautious against interacting with strangers, Barker Realty helps its clients with virtual tours. The firm has launched different tools for a fully online transaction.
In 2021, the DOM for property listings in Santa Fe County fell 24% year over year. Total sales and total sales volume in the area rose almost 13% and 32%, respectively.
Why Santa Fe Is A Seller’s Market
An uneven ratio of buyers and listed homes often indicates a shortage of available properties. While this is true, Barker Realty cited three factors that turned Santa Fe County into a seller’s market:
- Faster days-on-market (DOM) timeline
- Higher total sales and total sales volume
- Median sale price
In 2021, the DOM for property listings in Santa Fe County fell 24% year over year. Total sales and total sales volume in the area rose almost 13% and 32%, respectively.
The median sale price for properties also increased 12% during the same period. As of December 2021, the average sale price of houses reached $764,000.
The typical price of spacious luxury homes in Santa Fe costs between $2.4 million to $3.5 million. It’s almost impossible to find a similar property for sale in nearby cities such as Los Angeles.
Set on four acres near The Plaza, this Santa Fe estate has the feel of a private resort. Asking price: $2.995 million. (Barker Realty)
Klain believes that the Covid-19 crisis convinced luxury property buyers to take the plunge.
Most buyers have acquired prime properties in Santa Fe as their second or third homes. The influx of house hunters from California and other neighboring states has caused an uptick in prices.
For this reason, sellers should expect to get multiple bids for the same property. Aside from prices, a faster DOM also dictates the pace of activity in Santa Fe.
According to Barker Realty broker Mark Banham, luxury homes in Santa Fe used to change ownership after two to six months. In 2021, the average DOM for all listed properties lasted for approximately 37 days.
Banham also noted that high-end property sellers often offload their properties in less than 30 days.
The influx of house hunters from California and other neighboring states has caused an uptick in prices. (Barker Realty)
Forecast Real Estate Prices In Santa Fe
The current median price for a house in Santa Fe costs more than $387,000. In just 12 months, the price may increase to almost $393,000.
Median home prices in the city don’t show no signs of cooling. By 2027, the median price would reach over $415,000.
Property sellers in 2032 could sell their homes for more than $442,000, which is the predicted median price. The forecast amount represents an estimated 14% growth from the current median price.
While the outlook seems encouraging, Barker Realty suggests that now might be the best time to strategize a sale.
A continuous increase in property prices since 2020 and potentially higher mortgage interest rates present a good opportunity for sellers.
Click here to know more about Barker Realty and its roster of more than 70 experienced real estate professionals.
