Updated: Jan 14, 2021
MARKET HEALTH ANALYSIS
BY JASMINE SAGE - ASSOCIATE BROKER AT KELLER WILLIAMS
What. A. Year. I’d like to start off by congratulating each and every one of you for making it through this year of chaos and uncertainty. I know I spent most of 2020 frustrated yet optimistic and hidden away in my house. I am ever so grateful to my clients, friends and family for being wonderful during this time and really anchoring that sense of community I love so much here in Santa Fe. It fills my heart every time I think of how we have pulled together despite all the contention aroused this year.
And what a year for Real Estate! We started off the year with very good numbers and projections of having an absolutely fantastic year. Just as we were finishing up with the 1st Quarter, we went into shutdown which would last on and off again in New Mexico for the next nine months. Our sales dipped to nearly 30 percent lower than that of 2019’s 2nd Quarter and we were all more than a little anxious as to what was going to happen next in the market. The 3rd Quarter emerged into a fruitful summer, as the Real Estate Market stabilized and the National Association of Realtors (NAR) as well as the New Mexico Real Estate Commission adopted protocols for safe showings, open houses, and in-person signings to continue. The most exciting news just came in as we got our 4th Quarter numbers and were up 18 percent from the winter of 2019 in a particularly slow time of year for home sales in Santa Fe.
Keeping people safe, of course, is a top priority right now and the National Association of Realtors (NAR) as well as the New Mexico Real Estate Commission have adapted the process for buying or selling a home to accommodate new health orders. Matterport 3D virtual tours have been crucial for out-of-state buyers who are now able to virtually tour a home and see direct renderings of floor plans through this new platform. Zoom meetings/consultations, and live stream open houses is another way real estate practice has pivoted. If a showing is done in-person, face masks, gloves, and sanitary wipes are utilized and signing certain COVID forms are required for COVID tracking purposes. Real Estate has been up there with some of the fastest sectors to quickly pivot for a new adjusted way of commerce.
I wish everyone a Happy New Year and very prosperous 2021! Remember to stay safe and optimistic!
DECEMBER HOT SHEET
3 REASONS TO BE OPTIMISTIC ABOUT THE MARKET IN 2021
This year will be remembered for many reasons, and optimism is one thing that’s been in short supply since the spring. We’re experiencing a global pandemic, social unrest, an economic downturn, and natural disasters, just to name a few. The challenges brought on by the health crisis have also forced many homeowners to reevaluate their space and what they need in a home going into 2021. So, experts are forecasting that next year is one in which we can be optimistic about real estate for three key reasons.
1. The Economy Is Expected to Continue Improving
Tim Duy from the University of Oregon puts it this way:
“There is nothing fundamentally ‘broken’ in the economy that needs to heal…there was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hit…With Covid-19 cases surging again, it is understandably hard to look optimistically to the other side of this winter…Don’t let the near-term challenges distract from the economic stage being set for next four years.”
2. Interest Rates Are Projected to Stay Low
In the latest projections from Freddie Mac, interest rates for a 30-year fixed-rate mortgage are expected to remain at or near 3% next year. These low rates will continue to make homes more affordable, driving demand for housing in 2021.
3. Future Home Sales Are Forecasted to Grow
While the economy improves and interest rates remain low, homes are also expected to continue appreciating as more people buy in the coming year. Danielle Hale, Chief Economist atrealtor.com, says:
“We expect home sales in 2021 to come in 7.0% above 2020 levels, following a more normal seasonal trend and building momentum through the spring and sustaining the pace in the second half of the year.”
Experts forecast that buyers and sellers are going to be active in 2021. If you’ve thought about buying or selling your home this year but have held off, now may be the time to take advantage of this market. Let’s connect to take the first step toward your new home today.
Contact me for a free Competitive Market Analysis of your home!
130 Lincoln Ave, Santa Fe, NM 87507 505.983.5151