The Santa Fe Real Estate market is undergoing a January lull. Although the market remains strong, home sales have slowed slightly and inventory remains scarce. Springtime is historically prime time for homeowners to list their homes, so we are anticipating an upswing in inventory in the next couple of months. Out-of-state buyers continue to buy up Santa Fe’s housing stock and we are seeing homes sales in the million plus price point like we have never seen before.
Home prices at the end of 2020 were up about 7.6% from the end of 2019 and realtor.com predicts prices will continue to yield another 5.7% by the end of 2021. Hopefully this will incentivize homeowners to list their homes, and contribute towards balancing out the market from our national inventory shortage. Another incentive for homeowners to sell, is likely to take place once the vaccine has been more thoroughly distributed and air travel becomes safer again.
On Dec. 17 of 2020, Freddie Mac reported the average mortgage interest rate was 2.67% for a 30-year, fixed-rate mortgage, a new low that has not been seen for 50 years. As for our rental market; We are still benefitting from the temporary eviction moratoriums ordained at federal, state and local levels as well as an extension of the CARES Act to provide rental assistance, unemployment and stimulus checks. Here in New Mexico, the Mortgage Finance Authority was provided money directly from the CARES Act to supplement landlords for their tenants inability to pay providing the necessary proof of job-loss or other financial hardship due to the coronavirus pandemic.
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.
JANUARY HOT SHEET
NEW SHORT-TERM RENTAL ORDINANCE
City of Santa Fe
The Governing Body approved a new Short-Term Rental Ordinance on December 9, 2020 that goes into effect on January 1, 2021. All short-term rental owners and operators are responsible for understanding and following the new rules and regulations outlined within the ordinance. New home buyers must also sign that they have read and understand this new ordinance before a purchase can take place. Visit santafenm.gov/short_term_rentals for more information. For questions regarding the new short-term rental regulations, please contact the Short-Term Rental Office at 505-955-6336 or firstname.lastname@example.org. The new ordinance includes these major changes:
The new ordinance implements a city-wide maximum of one thousand (1000) short-term rental permits on residentially zoned property;
There is no limit for the amount of registrations that can be issued for non-residentially zoned properties and all short-term rental units do require a business license to operate.
The ordinance creates limitations to allow for only one short-term rental permit per natural person for residentially zoned properties;
A natural person is defined as "an individual human being, as opposed to an organization of any form or a business entity". While the short-term rental permit must be issued to a natural person, the property itself does not need to be owned by a natural person.
Permits cannot be transferred with the sale of a property or to another person. Permits may be transferred to a spouse of domestic partner upon the death of the permit holder, but only if the surviving spouse or domestic partner does not already hold a permit.
Limits the allowed proximity of short-term rental units on residentially zoned properties;
Measuring from a propertResidentially zoned: A short-term rental unit cannot be within 50 feet of an existing short-term rental unit, measured at the property boundary. For apartments, condos, or other multi-unit structures with four or more units, no more than 25% of the units can be rented as a short-term rental. No more than 12 permits will be issued for a single multi-unit dwelling. Multi-unit dwellings with 3 or fewer units are subject to the 50-foot rule.
Non-residentially zoned: No more than 12 registrations will be issued for a single multi-unit dwelling.
Requires a local operator for short-term rental units;
The local operator must be able to be physically present at the short-term rental unit to respond to emergencies and complaints within 1 hour of receiving the complaint.
Adopts record-keeping and reporting requirements for short-term rental owners and host platforms.
Owner/operators must keep records from the three most recent years, and these records must be available for review by the City upon request. Records must include:
Residentially zoned: date of each reservation and number of nights per reservation; amount of rent paid by guests per month; and amount of each type of tax and fee paid to the City by month.
Non-residentially zoned: amount of rent paid by guests per month; and amount of each type of tax and fees paid to the City by month.
NOTE: In residential zones, a unit may be rented once in a seven-day period. The seven-day rule does not apply from November 15th to January 15th.
The owner/operator must post the permit or license number on all advertisements for the short-term rental unit, including on host platforms (e.g., Airbnb, VRBO). If a permit or registration is invalid, the host platform must remove the listing within 5 days.
- The City also has a contract with Host Compliance, a service that helps the City collect information from online host platforms and assists the City in implementing and enforcing its regulations.
All permits submitted by December 31, 2020 will not be subject to the proximity requirements or the one permit per natural person rule. The City will begin requiring the previous year’s records during the March 15, 2022 re-application period (2021 records).
2 LUNA MEDIA
New construction in Park Estates at Las Campanas to be completed Fall of 2021. The home will have 4 bedrooms (or 3 plus an office), 3 full bathrooms plus a powder room. The home is thoughtfully designed and presented by Antigua Sol Development and built by Crescent Custom Homes. There is nice separation of owner's suite and guest rooms. The home is designed for indoor and outdoor entertaining taking advantage of expansive Jemez, sunset and golf course views. Finishes have been pre-selected and are available upon request, although at this stage of construction, the buyer can make this a true custom vision. Las Campanas offers 24 hour paramedics on site and security. Membership to The Club at Las Campanas is optional. Amenities offered by The Club include two Jack Nicklaus Signature Golf Courses, swimming, tennis, fitness, dining, a dog park and a spectacular equestrian center. Images are still shots from video rendering, construction to begin in early 2021.
Presented by Ralph Alan Group, Brokered by Keller Williams
130 Lincoln Ave, Santa Fe, NM 87507 505.983.5151