Note: Our data exclude some areas of the Taos MLS (Angel Fire, Eagle Nest, Red River, Raton, Chama, Mora, San Miguel County, “Other”) which we do not consider relevant to the main Taos market.
The market was UP in the first quarter: Total closed transactions were UP 14.7%; dollar sales were UP 12.6%.
Single-family homes are the largest component of the total market. In Q1, SFH accounted for 62% of total transactions, and 81% of dollar sales. In the January-March period of 2017, 54 homes sold vs. 45 during the same period in 2016, an increase of 20%. Dollar sales were $16.3 million vs. $13.9 million, an gain of 17.3%. The market for homes is definitely picking up this year.
Condo first quarter unit sales were down from 13 to 7 (-46%). Dollar sales were down 42%.
The number of land sales was up 50%, from 16 to 24. Dollar sales were up 23%.
There were no sales of multi-family properties during the first quarter of 2017 or 2016.
One commercial property sold in Q1 of 2017 for $730,000. 2016 first quarter also had one commercial sale, but the price was only $55,000.
2017 is starting off on a very positive note for single-family home sales. The early signs are indicating that the year will finish with substantial gains over 2016. Last year started out strong, but slowed as the year progressed, finishing down slightly compared to 2015. Several factors combined to constrain sales: buyer preoccupation with politics and the U.S. elections; a very limited inventory of good homes for sale; the impact of the oil price collapse on Texas and Oklahoma.
We sense that, with the election behind us, and with the economy improving, more people are ready to focus on personal goals such as buying a vacation home, retiring, etc.
If you have been thinking of selling your home, now might be the time! The inventory is low, and prices are rising. Call us for a free consultation and market analysis.
SUMMARY OF TOTAL MARKET (all categories of property)
January – March (2017 vs. 2016)
# of Closed Sales INCREASED from 75 to 86 (14.7%)
Dollar Sales INCREASED from $17,841,300 to $20,085,300 (12.6%)
First quarter unit sales were 20.0% above last year: 54 vs. 45 homes sold. Dollar sales were up 17.3%, from $13,921,500 to $16,324,400.
Average Prices – The median price for the quarter was down 11.7%, from $300,000 to $265,000. The average (mean) was also down, but only 2.3%, from $309,400 to $302,300.
Price Discounting – For the quarter, actual selling price averaged 4.5% less than the last asking price when the property went under contract. However, the average discount from original asking price was 8.6%. For the full year 2016, the discount from original asking price was 11.8%; for 2105 it was 13.9%; for 2014, it was 16.9%; for 2013, it was 18.4%. Although few homes sell for full asking price in Taos, we are seeing a trend of diminishing discounts, due to rising demand and continued tight supply.
Price Level – Prices of single-family homes fell 30%–40% from the market peak in 2007 to a bottom in 2012. Prices were flat for a few years. Prices are definitely increasing, but primarily for good-quality homes in the most preferred areas; however, as the year develops, we may begin to see prices rising across the board.
Days On Market – The average days on the market for all the homes that sold in the first quarter of 2017 was 192 vs. 259 in 2016. For the entire year 2016, it was 228; in 2015 it was 235; in 2014, it was 235 days. Even during the boom years 2004-2006, the average time to sell a house in Taos was relatively long, at about eight months. However, we are seeing well-priced homes in preferred areas selling fairly quickly.
Inventory and Sales by Price category:
|Current||Dec||Sept.||# of||% of||# of||% of||# of||% of|
|Up to $200,000||52||54||190||47||25%||78||31%||19||35%|
|$200,001 – $300,000||60||53||109||46||25%||61||24%||12||22%|
|$300,001 – $400,000||46||54||69||35||19%||49||20%||10||19%|
|$400,001 – $500,000||28||27||39||17||9%||32||13%||7||13%|
|$500,001 – $650,000||28||20||35||20||11%||17||7%||2||4%|
|$650,001 – $800,000||20||21||27||7||4%||11||4%||3||5%|
|$800,001 – $1,000,000||17||24||36||8||4%||0||0%||1||2 %|
The number of pending sales increased to 20 homes under contract.
Inventory – The inventory remains very tight, with 265 homes on the market, about the same as in December 2016. The inventory consists of a very wide variety of price, style, location, and condition; so it is often difficult to find more than a few homes that meet most of a buyer’s criteria. Note that in September of 2008, there were 518 homes listed for sale. The lack of inventory has definitely been a constraint on sales.
|How sales were financed||2015||2016||YTD||2017|
Foreclosure Sales – Of the 54 homes that sold in the first quarter of 2017, seven were foreclosures (13%). The highest sale price was $320,000; the lowest was $27,500. The number of foreclosure sales, and their percentage of total sales of single-family homes, for the previous six years were:
Currently, there are 13 bank-owned houses listed for sale; of those, four are under contract (sale pending).
First quarter condo sales were down by 6 units (46.2%), at 7 sold this year vs. 13 last year. Dollar volume was down from $2,654,100 to $1,538,900 (-42.0%).
The median price so far this year is up 4.8% ($175,000 vs. $167,000). The average (mean) price was up 7.6%, from $204,200 to $219,800.
As a comparison to peak market levels, in the full year 2006 there were 149 condos sold, with a median price of $251,000, and an average price of $259,300.
Price Discounting – For the first three months of 2017, final sales price averaged 5.4% less than last asking price when the property went under contract. The average discount from original asking price was 10.8%. For the full year 2016, the discount from original price averaged 11.8%; in 2015, it was 8.6%.
Inventory – The number of condos listed for sale at the time of this report was 59. In 2016, the highest inventory was 72 units listed for sale, which was in January. In 2015, peak inventory was 89 units, in August. In 2006, there were often over 200 condos on the market at any given time, since developers built a lot of units in 2004-2006. Buyer interest in condos has decreased since the peak years. As a result, there has been almost no new condo development. One factor affecting demand for condos is that conventional loans for condos are more difficult to obtain.
Inventory and Sales by Price Category
|Current||Last||Sept.||# of||% of||# of||% of||# of||% of|
|Up to $150,000||5||6||40||10||20%||22||33%||2||29%|
|$150,001 – $250,000||24||26||50||15||30%||27||40%||3||43%|
|$250,001 – $350,000||11||9||51||14||28%||10||15%||1||14%|
|$350,001 – $500,000||15||9||56||7||14%||6||9%||1||14%|
The number of pending sales is 4 units under contract.
Days On Market – For the seven condos that sold in the first quarter of 2017, the average days on market was 280, up from 236 during the same period in 2016. For the full year 2016, the average days on market was 259 compared to 324 for 2015 and 237 in 2014.
Cash Sales vs. Loans – For the seven first-quarter sales, two were cash and five were financed with conventional loans. For the full year 2016, cash sales were 49.3%; conventional loans were 49.3%; there was one FHA loan (1.4%).
There were no sales in the first quarter in either 2017 or 2016. Full-year sales in 2016 were two; in 2015 there were five.
Currently, there are seven multi-family properties listed for sale. There is one pending sales, a 28-unit property priced at $850,000.
Investor interest in multi-family should start to increase. The supply of long-term rentals is low because many property owners have switched to short-term (vacation) rentals. Long-term renters are having difficulty finding places to live. Rents are rising; therefore capitalization rates (net operating income as a percentage of sales price) should become more attractive to investors. On the other hand, if interest rates rise significantly, then investors will demand higher cap rates, which will reduce values unless rents increase commensurately.
The number of land sales in 2017 Q1 was up 50% vs 2016 Q1 ( 24 vs. 12 tracts). Dollar sales were up 23.2%, from $1,210,700 to $1,492,000.
The median price year-to-date is down, from $53,000 vs. $44,000 (-17.0%). The average (mean) price is also down, from $75,700 to $62,300 (-17.7%).
The highest sale price in Q1 was $182,500; it was a 3-acre residential lot in the desirable foothills above the hospital. Of the 24 tracts that sold, five were over $100,000. There were no commercial tracts sold.
Price Discounting – For the seven lots that sold in 2017 Q1, the final sales prices averaged 15.9% from last asking price; the discount from original asking price was 40.6%; however, this was skewed by one sale: a 103-acre tract with original ask of $531,000, sold price of $162,500. For the full year 2016, the price discount from last asking price was 13.4%. The discount from original asking price was 22.4%.
The average days on market for the 24 tracts that sold in 2017 Q1 was 740 vs. 595 for the same period last year. In full year 2016, days on market averaged 464; in 2015 it was 605 days; in 2014 it was 390; in 2013 it was 465.
Inventory and Sales by Price Category
|—–INVENTORY—–||2008||2015||2016 2017 YTD|
|Current Month||Last Month||Aug 2012||#||%||#||%||#||%||#||%|
|Up to $50,000||154||159||121||32||29%||32||37%||33||42%||13||54%|
|$50,000 – $100,000||174||179||143||33||29%||28||32%||29||37%||6||25%|
|$250,001 – $300,000||11||12||18||3||3%||3||3%||2||3 %||0||0%|
There are 13 pending sales.
The inventory is 533 tracts listed for sale.
The number of land sales is still very low compared to the early 2000’s. In the full year 2005, there were 339 closed land sales for a total value of $39 million. In 2006, 296 tracts sold for a total of $42.7 million.
There was one commercial sale in the first quarter of 2017. This was a combination retail/showroom/living space on the main road a few blocks north of Taos Plaza. The price was $730,000. A broker in The Lora Company represented the buyer. In the first quarter of 2016, there was also one sale, but it was only $55,000.
Full year 2016 had 7 commercial sales at a total value of $2.9 million. In 2015, there were 17 sales, totaling $8.1 million. In 2014, there were just three sales, totaling $2.34 million.
Currently, there are 42 commercial properties listed for sale. Of these, four are under contract. These include an RV park with an asking price of $350,000 which has been under contract for a long time; the former Appleby’s restaurant with an asking price of $990,000; and an old schoolhouse on Randall Lane near the Smith’s Supermarket.
The commercial market is still weak, with a lot of vacancies in retail stores and professional office space. Unlike residential rents, commercial rents are not rising. Nevertheless, we expect an increase in commercial property sales over the next several years as the economy slowly recovers, and as the impact of the major investments at Taos Ski Valley begins to be felt throughout the wider Taos market.