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July 9th, 2019 by Marco Santarelli
How is The Santa Fe Real Estate Market 2019?
Real estate can be a worthy investment opportunity. With research, a plan and the right price, just about anyone can be a real estate investor. If you are looking at investing in the Santa Fe real estate market as a potential investment opportunity, you must read till the end. Santa Fe is one of the oldest cities in the country, having been founded in 1610. Santa Fe is not the biggest city in New Mexico, but it is the state capital.
Santa Fe is around seventy thousand residents. The Santa Fe housing market, however, is larger than this. Santa Fe can be considered a suburb of much larger Albuquerque. That makes it part of a metro area with more than a million residents. This also means that the larger Santa Fe housing market contains half the state’s population. Let’s look at ten reasons to consider making a Santa Fe real estate investment.
There are a number of reasons to consider investing in the Santa Fe real estate. Is Santa Fe going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Santa Fe housing market trends and find out the prospects of investing in Santa Fe real estate in 2019.
Santa Fe Real Estate Market Forecasts 2019 & 2020
The median home value in Santa Fe is $383,300 on Zillow. Santa Fe home values have gone up 11.1% over the past year and Zillow’s Santa Fe Real Estate Market prediction is that the prices will rise 3.0% by May 2020. The median list price per square foot in Santa Fe is $253, which is higher than the Santa Fe Metro average of $243.
The median price of homes currently listed in Santa Fe is $500,688. The median rent price in Santa Fe is $1,900, which is the same as the Santa Fe Metro median of $1,900.
Here is the Santa Fe real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 3% till May 2020.
Santa Fe Housing Market Forecast 2019 – 2021
The Santa Fe housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Santa Fe housing market trend prediction is 80%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Santa Fe, NM is 80% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Santa Fe, New Mexico Real Estate Forecast.
Santa Fe Real Estate Market Trends
Santa Fe real estate market trends show a 3% week-over-week rise in average listing price and a 13% rise in median rent per month. Trulia has 875 resale and new homes for sale in Santa Fe, NM, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
As per the real estate company named Redfin, the average sale price of a home in Santa Fe was $190,000 last month, down 57.8% since last year. The average sale price per square foot in Santa Fe is $217, down 3.6% since last year.
There are 1,579 homes for sale in Santa Fe, ranging from $37.5K to $13.7M on Realtor.com. 85 of which were newly listed within the last week. Additionally, there are 42 Santa Fe rental properties, with a range of $251 to $9.5K per month. Santa Fe housing market has affordable multi-families, and affordable 2 bedroom listings. In May 2019 the housing market in Santa Fe, NM was a balanced market, which means there was a healthy balance of buyers and sellers in the market.
The median list price of homes in Santa Fe, NM was $480,000 in May 2019, trending up 2.6% year-over-year. The median listing price per square foot was $245. Santa Fe, NM is a balanced market in May 2019, which means that the supply and demand of homes are about the same. On average, homes in Santa Fe, NM sell after 56 days on the market. The trend for median days on market in Santa Fe, NM is flat since last month, and flat since last year.
The median list price in Santa Fe, NM is $547,250 on Movoto.com. The median list price in Santa Fe went up 4% from June to July. Santa Fe’s home resale inventories is 10, which decreased 16 percent since June 2019. The median list price per square foot in Santa Fe is $228. June 2019 was $221. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in July.
Santa Fe, NM Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
Santa Fe’s real estate dynamic stretches across the Mountain States and elsewhere in the country, where similar factors are in play: a shortage of homes on the market, new home construction failing to meet demand, steeply increasing home construction costs and a shortage of construction workers.
The Santa Fe Housing Market Area (HMA) is coterminous with Santa Fe County and the Santa Fe, NM Metropolitan Statistical Area in north-central New Mexico, approximately 60 miles northeast of Albuquerque between the Sangre de Cristo mountain range and the Valles Caldera National Preserve.
As per the real estate company called Neigborhoodscout.com, the median house price in Santa Fe, NM is $295,779, which indicates that home prices in Santa Fe are near the national average for all cities and towns in the United States. Single family detached homes are the single most common housing type in Santa Fe, accounting for 57.51% of the city’s housing units.
Other types of housing that are prevalent in Santa Fe include large apartment complexes or high rise apartments ( 16.31%), duplexes, homes converted to apartments or other small apartment buildings ( 8.97%), and a few row houses and other attached homes ( 8.89%).
The most prevalent building size and type in Santa Fe are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 61.43% owning and 38.57% renting.
Currently, there are 603 Single family homes for sale in Santa Fe, NM on Zillow. Additionally, there are 49 single family homes for rent in Santa Fe, NM. Under potential listings, there are about 21 Foreclosed and 76 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Santa Fe, NM Foreclosures And Bank Owned Homes 2019
According to Zillow, the percent of delinquent mortgages in Santa Fe is 0.9%, which is lower than the national value of 1.1%. There are currently 148 properties in Santa Fe, NM that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 913.
In May 2019, the number of properties that received a foreclosure filing in Santa Fe, NM was 41% lower than the previous month and 62% lower than the same time last year.
Home sales for April 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Santa Fe was $0. The median sales price of a foreclosure home in Santa Fe was $0, or 0% higher than non-distressed home sales.
Santa Fe Home Prices And Real Estate Appreciation 2019
The average annual home appreciation rate in Santa Fe during the last ten years has been just 0.35%, which is lower than 70% of US communities.
Santa Fe real estate appreciation rates are so strong that despite a nationwide downturn in the housing market, Santa Fe real estate has continued to appreciate in value faster than most communities. In the latest twelve months,
Santa Fe real estate appreciation rates continue to be some of the highest in the nation, at 6.75%, which is higher than appreciation rates in 73.10% of the cities and towns in the nation.
In the last twelve months, short-term real estate investors have found good fortune in Santa Fe. Santa Fe real estate appreciation rates in the latest quarter were at 1.01%, which equates to an annual appreciation rate of 4.10%.
The above statistics on real estate appreciation in Santa Fe, NM were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to New Mexico, their data shows that Santa Fe’s latest annual appreciation rate is lower than 60% of the other cities and towns in New Mexico.
The annual median home price in Santa Fe has increased 30 percent since 2015, rising from $285,000 to $310,000 in 2016 and $324,000 in 2017.
According to the Santa Fe Association of Realtors, the median home price in Santa Fe in 2018, based on sales over the year, came to a record $370,000, surpassing the pre-recession peak of $360,000 in 2007.
The 2018 fourth-quarter median price in the city reached $412,000, but the first and third quarters of the year had lower median prices of $322,500 and $324,000, respectively.
Best Places To Buy Real Estate In Santa Fe, New Mexico
If you are looking to buy real estate in Santa Fe, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Santa Fe real estate and you should be able flip it for a lump sum profit.
When looking to invest in Santa Fe, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Santa Fe investment property should be low. The neighborhoods in Santa Fe must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
There are 55 neighborhoods in Santa Fe. There are 91 schools in Santa Fe, NM. There are 27 elementary schools, 19 middle schools, 14 high schools and 31 private & charter schools.
Some of the best neighborhoods in Santa Fe, New Mexico are Arroyo Chamisa-Sol y Lomas, Las Campanas Estates and Sante Fe Historic District. Las Campanas Estates has a median listing price of $1.2M, making it the most expensive neighborhood. Las Acequias is the most affordable neighborhood in Santa Fe, with a median listing price of $255,000.
Here are the 10 best neighborhoods in Santa Fe to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Should You Invest In Santa Fe Real Estate In 2019?
Is it worth buying a house in Santa Fe, NM? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Santa Fe is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Santa Fe housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Santa Fe but we have collected ten evidence based positive things for those who are keen to invest in the Santa Fe real estate in 2019.
Investing in Santa Fe real estate will fetch you good returns in the long term as the home prices in Santa Fe have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Santa Fe real estate market which can help investors who are keen to buy an investment property in this city.
1. It Has a Strong, Diversified Economy
One of the points in favor of Santa Fe real estate investment is the area’s diverse economy. The job market is not just tied to the level of government employment and tourism, though these are major contributors.
Manufacturing, retail, agriculture and high tech are also sources of high paying jobs and demand for the Santa Fe housing market.
The roughly 4 percent unemployment rate isn’t much better than the national average but much better than the rest of the state, and the far better median household income fuels demand for the Santa Fe real estate market.
The median household income in Santa Fe is roughly 60,000, about twice the median income for the state of New Mexico.
2. Property Values Are Appreciating
The median home value in the Santa Fe real estate market hovers around 270,000 dollars, and it is rapidly approaching 300,000 dollars. This is due to the faster than average population growth because people are moving to the area for work.
This is an improvement on the 1 to 2 percent annual appreciation the Santa Fe real estate market saw several years ago. Later on, we’ll explain why a Santa Fe real estate investment isn’t going to be threatened by a future home building boom.
3. Rental Rates Are Rising, Too
The median rent in Santa Fe is roughly 1200 dollars a month. What is noteworthy is the twelve percent increase in rental rates from 2018 to 2019. The area simply isn’t building enough new rental units to accommodate new residents and the large permanent rental markets.
Yet this is a bargain compared to the rental rates in the more expensive neighborhoods in the Santa Fe housing market. For example, rents in Chupadero and Cuyamungue are over two thousand dollars a month. Do your research, and you could receive significant ROI on a Santa Fe real estate investment property.
4. There’s Lots of Room for Growth
New Mexico’s economy took a major hit in the Great Recession of 2006-2012. In fact, the state’s economy has only now recovered to the same levels of employment and activity it had back in 2006.
This means there is plenty of room for wage and job growth over the new few years. An even stronger economy will increase both rental rates and property valuations of any Santa Fe real estate investment.
5. There Is a Large Rental Population
About a third of residents in the Santa Fe housing market rent. This is in line with national trends. However, that population is broken up into several groups that are unlikely to buy a home. As the state capital, there are several public and private colleges in the area.
The University of New Mexico is the largest, but you can diversify your Santa Fe real estate investment portfolio by owning rental properties near St. John’s College, Southwestern College, the University of Natural Medicine or the Santa Fe Art Institute.
6. And Local Economics Will Prevent Many Would-Be Buyers from Buying
Geographic constraints and local regulations limit how much new housing and dense housing can be built in the Santa Fe real estate market. This explains why housing in the Santa Fe housing market is roughly 80 percent more expensive than the New Mexico state average.
The housing affordability index in the Santa Fe area is around 80, where average would be 100. This means that a large share of the population can’t afford to qualify to buy the average house in the Santa Fe real estate market.
The Santa Fe housing market also faces literal geographic constraints. For example, it is sandwiched between Santa Fe National Forest and Hyde Memorial State Park. Furthermore, there are several Native American reservations and Pueblos that are off-limits to real estate developers.
7. Seasonal Demand Creates an Unusual Opportunity
The Santa Fe housing market sees a small but significant influx of snowbirds or winter residents. It attracts those interested in its history, arts scene and educational institutions instead of the perennial golfers heading to Scottsdale, Arizona. This also creates a larger than expected demand for mobile home slots and one and two bedroom homes for rent.
8. It Is More Landlord Friendly than a Few of the Alternatives
New Mexico is truly on the edge of being called landlord friendly. It isn’t landlord friendly when you compare it to neighboring Colorado and Texas. Yet it is far more favorable for property owners than Arizona or Nevada.
For example, you can charge late fees but they’re capped at 10 percent of the rent. Security deposits are typically set at one month, though longer leases can have a “reasonable” security deposit. If someone is late on rent, you have to send a three day termination notice.
If they pay the rent, they can stay. If they don’t, you can begin the eviction process. For lease violations, tenants have seven days to make corrections. However, if they re-offend within six months, you can begin eviction.
9. It Is Friendly Toward Short Term Rentals
Santa Fe, New Mexico is unusual in coming to a voluntary accommodation with Airbnb. They haven’t killed the short term rental market the way some cities have.
They haven’t even limited short term rentals to the touristy areas of the Santa Fe real estate market. This means you can buy a Santa Fe real estate investment property almost anywhere and rent it out on the short term market.
10. It Is Tax-Friendly for Property Owners
New Mexico has one of the lowest property tax rates in the country. The average home owner paid less than 0.7 percent of their home’s value in property taxes. You’d pay a higher tax rate on a Santa Fe real estate investment property than residents, but it will still be well below the 1.1 percent average tax rate charged in the United States.
Santa Fe Real Estate Investment
Maybe you have done a bit of real estate investing in Santa Fe, NM but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Santa Fe real estate investment opportunity would be a key to your success. in If you invest wisely in Santa Fe real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Santa Fe investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Santa Fe, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Santa Fe, NM. Santa Fe is often overlooked in favor of larger cities in New Mexico or the more exotic, touristy destinations like Taos. However, the recovering real estate market is ripe for investment.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Santa Fe, NM is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Santa Fe real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
The other best place to invest in real estate is Albuquerque, NM. Albuquerque is an often overlooked real estate market in the West because it doesn’t make headlines. However, the strong fundamentals and positive long-term outlook make it a great place to consider investing.
The Albuquerque housing market is considered balanced. The number of buyers and sellers is roughly even. It isn’t so hot that property values are skyrocketing. Demand isn’t so soft that property values are declining. Homes take 60 to 80 days to sell. This is the sign of a healthy real estate market that will remain stable unless the job market collapses.
Another sizzling market to invest in real estate is Sacramento, CA. Sacramento is an island of sanity in an overpriced, over-regulated and overheated West Coast housing market. It reflects the California ideal that most of the state has lost, and that’s we recommend it to investors over the “hotter” California metro areas.
These are the same factors causing many Californians themselves to vote with their feet and move here instead of moving out of the state altogether.
One of the reasons to snap up a Sacramento real estate investment over one in the hotter real estate markets is that the area is safer overall. Sacramento has a slightly higher property crime rate than other big cities in the cities, but Sacramento has a much lower violent crime rate.
People are more concerned about being mugged, raped or murdered than having their car broken into. The nonviolent crime stats are also skewed due to the more lenient authorities in San Francisco and Los Angeles.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Large rental population
Room for growth
Short term rentals
Housing Market Data, Trends & Statistics
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