Our Forecast for Real Estate in 2022
First, Santa Fe has been discovered. Sales prices have increased over 16% overall since before the pandemic to now. There is a long-term trend of buyers moving from urban areas to smaller towns for a better quality of life. I expect this trend to continue for a long term.
Home prices are at an all-time high in Santa Fe, but it’s not a bubble. This is because there are so few homes for sale. Historically we would have over 2,000 properties for sale. Currently there are less than 350 properties for sale—less than 20% of demand. It will take years for supply to catch up, as we have increased demand!
Santa Fe also benefits as it has become a prominent retirement destination. Not only do we have world-class restaurants, music venues and a sophisticated quality of life, there are now several retirement communities, in addition to independent living options, which are needed as we boomers age.
Younger generations are coming too; both those who have done well in the cities or those just looking for a new life. I’m happy to say that our town is the most affordable of the luxury Western destinations, so our school teachers and firefighters can afford homes here. Our education is improving. All this makes for a healthy community. In addition to the amenities above, we enjoy temperate weather year-round and the great outdoors with cycling, skiing, hiking and just watching sunsets.
The potential risk could be significantly increased mortgage rates or an economic downturn. Just yesterday the Federal Housing Finance Agency increased fees for second homes and high balance loans. Further, the Federal Reserve has discussed increasing rates in 2022, which would affect all loans.
Don’t wait. If you are looking to buy or sell, please consider calling us now. Sellers are commanding historic high prices and buyers can still benefit from both our strong investment market and great 30-year mortgage rates. We have no crystal ball, but we think real estate will continue to be a solid investment.
We are so proud to be one of the top teams in real estate sales in Santa Fe. We work in the city and county, in all price ranges. We are here to help you, with the best concierge-style real estate services, with experience and grace. Call us for more information about selling your home or buying in the Land of Enchantment.
“The past gave us experience and made us wiser so that
we can create a beautiful and brighter future.”― Debasish Mridha