After an unusually cool June, we moved into an usually hot July with the cooling monsoons just arriving. Figuratively, however, Santa Fe’s summer season is off to a strong start despite the country’s general economic woes. The International Folk Art Festival reported record attendance earlier this month with overall spending down a slight 3% from the previous year.  The Santa Fe Opera has also enjoyed a good start with strong attendance.  In our world as real estate brokers, we are pleased to report that the real estate market is demonstrating its historic pattern of increased sales activity during the summer months although the increase in sales is coming off a multi-year low in the 1^st quarter of 2009.

As expected in the spring, our residential inventory increased as sellers positioned to market their homes during our stronger selling season.  While the overall average listing price/sq.ft. and the average Days on the Market have remained stable from the 1^st quarter, the selling price/sqft has continued to drift downward.

There were 252 more sales in the second quarter than the 1^st quarter 2009.  The average Days on the Market and List/Sale percentages have remained stable while average price per sq.ft. has declined approximately 5%.   When compared to total sales at the end of the 2^nd quarter 2008, sales this year are off approximately 35%.

Year Over Year Sales Comparison

2009 Year To Date 2^nd qtr to Year To Date 2^nd qtr 2008 Sales

With the increase in inventory, the number of months to absorb all properties on the market has increased approximately 28% as an average of the entire market.  It is important to note, however, that absorption rates differ depending on the price range.  The highest increase in absorption rate has been in the $1,000,000 – $2,000,000 range with an increase of 47%!

Residential Absorption Rates

2^nd Qtr 2009 – Santa Fe City and County

The increase in inventory, absorption, and diminished sales have generally resulted in falling prices (as measured by price/square foot) and falling list to sales ratios.  This can be seen in the activity in two popular areas:

2^nd Quarter Year to Date Comparisons – ’08 – ’09

As previously reported, the residential land market has been severely affected by the market downturn.  Inventory is down slightly from the end of the first quarter at 981 available parcels while only 60 parcels sold in the first two quarters.  If the rate of sales stays constant through out the year, this equates to an eight year supply!

Residential Land Inventory and Sales

Santa Fe City and County

01/01/09 – 06/30/09

Despite all the disappointing news in the above reports, those of us in the trenches each day are encouraged by the definite increase in showing and sales activity.  Positive indicators are emerging such as the number of showings having grown consistently in each of the past three months and a 60%+ increase in pending contracts when compared to June 2008 (for Sotheby’s International properties). Also pointing positively,  12 properties over $1,000,000 have gone under contract since June 1^st which is impressive when considering a total of 21 properties sold in the first two quarters of the year.

Clearly Santa Fe remains a very alluring and attractive community to reside in and many buyers know this is a very compelling time to buy.  It is also not necessarily unattractive for Sellers at the moment. Many may not do as well on the selling end as they hoped for, however, when they purchase a new home they can reap the benefit of lower prices.

As always we hope this market report is of interest to you.  Please let us know if we can assist you or your acquaintances with any real estate questions or needs!

I recently learned that Santa Fe has been rated as one of the 2009 Best U.S. and Canadian cities for best travel experience. Not only was Santa Fe in the top ten, it was rated in the top 5!!!!! (Last year we were rated in the top ten). You should consider picking up a copy of the August edition of the magazine as Santa Fe will be featured with the other four top destinations.

While honored by Travel and Leisure, U.S. News and World Report named Santa Fe as “One of the Top Ten Housing Markets for the Next 10 Years” and it names Santa Fe as its Editor’s pick for “Best Places to Retire”.

Coming back to the present, we have just concluded the second quarter and are compiling the statistics for year to date sales activity. As traditionally happens, sales picked up in the second quarter with there being 249 more residential sales this quarter than last. The average days on the market has held steady at 185 days while the average price/square foot has slipped from $272 to $261. I’ll have more to report next week and will post an updated State of the Market Report. Be sure to check in then to get the full picture!

As always, just let me know if we can assist you or help in any way with your real estate needs-

Of Santa Fe’s many areas to live, our foothills are among locals favorites. Flanking the City’s east and north sides, these foothills of the Sangre de Cristo Mountains contain the City’s growth as they transition into the National Forest and our 12,000 foot peaks high above.

Depending on location, huge views of the Sandia and Jemez Mountain ranges are seen in the distance from most vantage points. Depending on location, it is possible to catch views of the ski mountain as well as the Pojoaque and Espanola Valley. Vegetation and terrain ranges from rolling foothills covered with juniper and pinion to much more mountainous terrain with pinion and ponderosa pine.

Here are some of the subdivisions and sub- areas to consider if you have interest in the foothills:

• Tesuque
• The Hills and Villas at Bishop’s Lodge
• Monte Sereno
• The Summit
• Sierra del Norte
• Ceros Colorados
• Vista Redonda
• Los Caminitos
• Tesuque Ridge Ranch
• Wilderness Gates
• Ponderosa Ridge
• Double Arrow Road

Of course, the above is just a sampling, yet it can help you get started on your search. Just let me know, though, if you would like help in sorting through options!

Cheers- Moo moo@moothorpe.com

Summer is a wonderful time in Santa Fe. The weather is a delightful mix of hot intense sun intermixed with cool breezes and rain from afternoon thunder clouds. At night our high mountain air ensures we keep sweaters handy while watching dramatic sunsets.

This invigorating climate, dramatic landscape, and historic architecture have drawn people to spend summers here for years. Before air conditioning, Santa Fe was a haven for many families escaping the hot and humid climates of Texas and Oklahoma. Many of these families eventually bought homes in Santa Fe as it became such an integral part of their family traditions.

Traditionally, summer and fall is our strongest real estate season. Many schedule their trips to blend buying property with one of our fantastic summer events such as The Santa Fe Opera, the Santa Fe Folk Art Market, The Santa Fe Chamber Music Fesitval, The Hispanic Market, the Santa Fe Fiesta, and Zozobra. Whether you are considering land with big views, a historic adobe home, or luxury estate property, summer is a terrific time to be here!

P.S. Please let me know if you would like a copy of our State of the Market Report. We will be sending out an updated version soon after the quarter ends on the 30th! Just e-mail me to let me know!

Come live an inspired life at Las Campanas where views of the Sangre de Cristos and Jemez mountains surround you.

Lifestyle:

• Two Jack Nicklaus Signature Golf Courses
• A complete Equestrian Center
• A well-appointed Spa & Tennis Center
• An inviting Hacienda Clubhouse that serves as the heart of the community

Las Campanas was created as a community where people would be able to live the life they’ve always imagined, where homes could be set like jewels between endless mountain ranges. Bathed in bright sunshine and blessed with cool, dry mountain air, Las Campanas is a 4,700-acre community where members enjoy the natural beauty of New Mexico, pursue a myriad of recreational activities, and find the serenity and privacy they have long sought.

At Las Campanas you are free to turn your dreams into reality, anything is possible. It is an environmentally sensitive community rich in the amenities required to lead a full life and equally rich in the opportunities to meet new friends and share moments with family and old friends. With Las Campanas as your center, you can experience the cultural life of Santa Fe and the multicultural history and traditions that make New Mexico the Land of Enchantment.

Currently Las Campanas offer some of the best values in luxury homes in all of Santa Fe’s market.  Most homes are situated on 1+ acre lots and have been custom built and designed and feature fine finishes and craftsmanship.  Prices range from the mid $700,000′s to $4,000,000 +.   Here is a sampling of current listings that represent excellent values:

24 Violet Circle…..$749,000      http://loginlax.rapmls.com/Menu.aspx?hidMLS=SFE

35 Koshari ……..$925,000         http://loginlax.rapmls.com/Menu.aspx?hidMLS=SFE

After many months of diminished sales activity, those of us “in the trenches” are experiencing a definite up tick in sales activities. Within Sotheby’s the number of showings has consistently risen in each of the past few months which is now resulting in increased pending contracts. Consider that year to date, there have been 19 sales of homes over $1,000,000 and as of today, there are 12 homes that have recently gone under contract for over $1,000,000!

We are also experiencing increased interest and sales in Zocalo, an award wining condominium community designed by Ricardo Legoretta. There are tremendous values available in this unique spot 5 minutes from Santa Fe’s historic center. Modernist in design, these homes range from 1100 square feet, 2 bedroom/2 bath starting at $250,000 up to 2500 square feet, 3 bedroom/3.5 baths at $650,000. Homes feature lots of natural light with high ceilings, concrete, tile, and stone floors, tile and granite counters, travertine baths……..In addition the community features a terrific community center with lap pool, hot tub, fitness center, and walking trails!

It is such a pleasure to be associated with our fine company! Although not the largest company by number of agents in Santa Fe, we do have the most productive agents in town. A recent review of what companies are selling the most in many of our popular areas shows that we continue to hold market share. Here is a listing of our market share in these communities / neighborhoods based on our current listings year to date:

• Las Campanas – 44.85%
• Monte Sereno – 74%
• Zocalo – 75%
• Estancia Primera – 60%
• Eastside/Historic Eastside – 55.38%
• La Tierra / La TierraNueva – 60%
• Quail Run – 61.90%
• Santa Fe Summit – 59.62%

On a broader note, we are experiencing a pick up in activity with both showings as well as pending contracts. This is positive as it reflects the seasonal rhythm we have always enjoyed of the market picking up in the late spring through the fall. Santa Fe remains a strong draw for both full time and vacation ownership and now is the best time to buy we have had in years!

After a long winter of cold, snow, and gray days it’s refreshing that spring has finally settled in. After several false starts, fruit trees and flowering shrubs have blossomed, mountain snow is melting away, and jackets are shed once the sun comes out.

While nationally there are cautious signs of an economic spring emerging, the Santa Fe’s real estate market is still somewhat frozen. Inventory levels are about even with 3rd quarter ’08 while average days on the market have risen from 164 to 185 days and absorption rates have inched higher. Given the economic climate, residential sales, however, fell 35% this quarter as compared with 1st quarter ’08.

Other noticeable changes since 1st quarter ’08 include a widening of the spread between asking and sales prices and a dropping of the average price/sqft. Of course, the statistics of each specific neighborhood may vary from the average somewhat but here is a snapshot of two popular areas to give a flavor of what has been transpiring:

We recently began tracking a new parameter that provides perspective on sales momentum by following the number of listings taken vs listings sold within the time period. It is sobering from a seller’s view point as only 27.20% of listings taken in the quarter have sold. It speaks for the need for sellers to price their properties very attractively relative to competing inventory as well as making their home’s aesthetics shine. (It is important to note that historically sales are slower in the 1st quarter relative to later quarters and subsequently this parameter should improve as the year progresses).

Continuing the trend of previous quarters, land sales continue to suffer far more than the residential market. Inventory remains high at 1020 parcels with only 25 sales year to date.

Everyday we are exposed to a wide variety of opinions as to where real estate markets are headed in 2009:

Home Price Outlook Clouded by Disagreement

• Source: The Wall Street Journal (4/24/09)

Housing Analysts Predict the Bottom Is Near

• Source: The Wall Street Journal, June Fletcher (04/24/2009)

National Housing Picture Tough to Determine

• Source: The Wall Street Journal, Dawn Wotapka (04/23/2009)

While Santa Fe has weathered the storm fairly well overall, its clear that our market now offers the most attractive buying opportunities seen in years. If the current government stimulus plan results in high inflation a year or two out, real estate, especially if financed at historically low interest rates, could prove to be a positive hedge. In the interim, we will be tracking the market and continue to keep you informed each quarter on where things are going.

As always, please don’t hesitate to contact us should you like to discuss the market and/or how it might specifically affect your property or any potential buying decisions.