The entire United States is tainted by the specter of foreclosed properties, and the Santa Fe housing market is no different. Although rare in Santa Fe as compared to the rest of the country, there attractiveness drives buyers to seek them out. After exhausting this limited supply, buyers then turn to the traditional market in search of sellers who are motivated to sell. With prices having dropped close to 20% or more from the highs of 2006, some of the recent sales have traded at prices not imagined here for a decade or more. This surge of home buying that started this summer (as compared to the silence of the first part of the year) has not only been directed by the value proposition, but also the tremendous variety of homes now on the market.
The Santa Fe real estate market has not been hit as hard as some areas in the United States because it never had the huge run up in values like California, or the oversupply issues plaguing Nevada and Florida. Because Santa Fe has a significant second home contingent, that component has been hit hard. People have been unable to sell homes “back home”, and consequently have delayed buying in this market due to lack of funds. Interestingly it has not slowed activity, as showings have stayed strong and attendance at August’s Hacienda Parade of Homes was near record levels. The housing stock in Santa Fe is easily the highest quality in United States. Why? No where else are plaster walls throughout a home the norm. The masonry work both inside and out is labor intensive and cosmetically appealing. In floor radiant heat appears everywhere in this market. And what would Santa Fe homes be without decorative ceilings featuring Vigas, Latillas, ornate beams, coved plaster and more? Hardly a week goes by that I don’t talk with someone from Aspen, Vail, Jackson Hole or Southern California and they are shocked at the overall quality of homes here compared to the sheet rock finishes in their $1000+ per square foot homes.
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