Note: These 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.
Single-family homes are the largest component of the total market. Through July, SFH accounted for 61% of total transactions, and 76% of dollar sales. July 2017 single-family home sales were UP over July last year, but only by one house sold. This is a smaller gain than in previous months this year, but our string of consecutive monthly gains remains unbroken. However, at the time of this writing, August 2017 looks as if it may fall short of last August’s sales.
Condo sales were down in July by 1 unit over last year. Land sales were much higher. Commercial sales were down by 1.
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.
TOTAL MARKET (all categories of property)
Month of July (2017 vs. 2016)
# of Closed Sales INCREASED from 35 to 38 (+8.6%)
Dollar Sales DECREASED from $9,539,500 to $8,915,000 (-6.5%)
Year to July 31 (7 months)
# of Closed Sales INCREASED from 201 to 248 (+23.4%)
Dollar Sales INCREASED from $50,981,900 to $63,518,700 (+24.6%)
July unit sales exceeded last July’s by 1 unit: 23 vs. 22 (+4.5%). Dollar sales were down 5.4%, from $7,251,000 to $6,859,600.
Year-to-date, the positive variance for houses sold 2017 vs. 2016 has decreased from 34% to 29% (151 houses sold through this July vs.117 for the same period last year. Dollar sales are up 28%, from $37.8 million to $48.5 million.
Average Prices – The median price year-to-date is down 2.6%, from $310,000 to $302,000. The average (mean) is down 0.6%, from $323,200 to $321,200.
Price Discounting – Through the first seven months of the year, actual selling price has averaged 4.5% less than the last asking price when the property went under contract; the average discount from original asking price is 8.8% so far this year. For the full year 2016, it was 10.5%; in 2015 it was 13.9%; in 2014 it was 16.9%; in 2013, it was 18.4%.
Price Level – Prices of single-family homes fell 30%–40% from the market peak in 2007 to a bottom in 2013. There was no discernible increase until 2016, when prices started to move up some, but only for good-quality homes in the most preferred areas. We are now beginning to see prices rising in most cases, due to increasing demand and limited supply; some areas are rising more than others.
Days On Market – The average days on the market for all the homes that have sold through July this year is 202 vs. 276 for the same period last year (-27%). As with price discounting, the limited inventory is affecting days on market, as buyers are moving faster than they typically do here in Taos. The average for the full year 2016 was 228 days; in 2015 it was 234 days; in 2014, it was 235 days. Even during the boom years 2004-2006, the average time to sell a house in Taos was about eight months — much longer than in many U.S. markets.
|Up to $200,000||59||61||190||47||25%||78||31%||42||28%|
|$200,001 – $300,000||66||69||109||46||25%||61||24%||33||22%|
|$300,001 – $400,000||70||55||69||35||19%||49||20%||35||23%|
|$400,001 – $500,000||43||44||39||17||9%||32||13%||20||13%|
|$500,001 – $650,000||34||34||35||20||11%||17||7%||11||7%|
|$650,001 – $800,000||31||28||27||7||4%||11||4%||8||5%|
|$800,001 – $1 million
The number of pending sales increased from 24 to 28.
Inventory – The seasonal increase continued, with 329 homes on the market, up 9 from a month ago; but that is still relatively low. The inventory consists of a wide variety of price, style, location, and condition; it is often difficult to find more than several homes to show a buyer that meet his or her criteria. Note that in September of 2008, there were 518 homes listed for sale. The limited inventory has been a damper on sales.
How Home Sales Were Financed:
Foreclosure Sales – There were 5 foreclosure sales in July 2017. Through the first seven months this year, there have been 16 foreclosure sales (7% of total houses sold). The number of foreclosure sales, and their percentage of total sales of single-family homes, for the previous six years were:
Currently, there are 12 bank-owned houses listed for sale (down from 14 last month); of those, two are under contract (sale pending). The number of foreclosures has diminished steadily over the past several years, both locally here in Taos and nationally.
July condo sales were down slightly from July of last year (4 vs. 5). Dollar volume was down from $1,147,000 to $871,000 (-24%).
Year-to-date unit sales are 25% below last year’s pace (24 vs. 32). Dollar sales are down 25% at $5.3 million this year vs. $7.1 million last year.
The median price year-to-date is up 7.0% ($206,500 vs. $192,000). The average (mean) price is up 0.3%, from $220,400 to $221,000.
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 – Through seven months this year, final sales price has averaged 5.1% less than last asking price when the property went under contract. The average discount from original asking price is 7.6%. For the full year 2016, the discount from original price averaged 11.8%.
Inventory – The number of condos listed for sale increased from 64 last month to 66 at the time of this report. Last year’s highest inventory was 72 units for sale, which occurred in January. In 2006, there were often over 200 condos on the market at any given time.
|Current||Last||Sept.||# of||# of||# of|
|Up to $150,000||6||6||40||10||20%||3||22%||4||16%|
|$150,001 – $250,000||22||20||50||15||30%||7||50%||14||58%|
|$250,001 – $350,000||14||15||51||14||28%||2||14%||3||13%|
|$350,001 – $500,000||17||17||56||7||14%||2||14%||3||13%|
There are 3 pending sales.
Days On Market – The average days on the market through seven months this year is 179 compared to 284 for the same period last year. The average for the full year 2016 was 259; in 2015 it was 328 days; in 2014, it was 237 days.
Cash Sales vs. Loans – Of the 24 condos that have sold so far this year, 15 were cash sales (62%), and 9 were financed with a conventional loan (38%).
There were no sales in July 2017 or July 2016.
Year-to-date there have been three sales vs. none through July 2016. Total dollar volume for the three sales was $1,580,000.
Currently, there are six multi-family properties listed for sale; there is one pending sale.
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.
Conventional financing is a challenge, due to the lack of sales. Lenders typically require 2 comparable sales within the past 12 months.
July 2017 unit sales were 11 vs. 7 last year (+ 57%). Dollar volume was up from $526,500 to $1,184,400 (+125%).
Year-to-date unit sales are up 41% at 65 vs. 46 tracts sold. Dollar sales are up 46%, from $3,626,700 to $5,286,500.
The median price year-to-date is up 15%, from $50,500 vs. $58,000. The average (mean) price is up 3%, from $78,800 to $81,300.
The highest sale price so far this year is $700,000, a 12.9-acre tract near Town zoned for four residential units per acre that sold for $700,000. Of the 65 tracts that have sold, 16 were over $100,000. There have been no commercial tracts sold.
Price Discounting – Year-to-date, the final sales price has averaged 15.3% less than last asking price; the discount from original asking price is 28.1%. This average was skewed by three sales: a 103-acre tract with original ask of $531,000, sold price of $162,500; a 10-acre tract originally listed at $325,000 that sold for $152,000; and the 12.9-acre tract noted above which had an original price of $1 million and sold for $700,000. 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 65 tracts that have sold year-to-date was 558 vs. 539 for the same period last year. In the full year 2016, days on market averaged 464; in 2015 it was 605 days; in 2014 it was 390; in 2013 it was 465.
|Up to $50,000||156||150||32||37%||42||47%||24||44%|
|$50,000 – $100,000||201||188||28||32%||31||34%||18||33%|
|$250,001 – $300,000||14||16||3||3%||2||2%||0||0%|
There are 15 pending sales, up from 12 last month.
The inventory is 585 tracts listed for sale, up from 569 last month.
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 were no commercial sales in July this year, compared to one in July 2016.
Through the first seven months of 2017, there have been five sales, totaling $2,851,000 compared to six for the same period in 2016 that totaled $2,490,000.
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 37 commercial properties listed for sale. Of these, only one is under contract (the RV park with an asking price of $350,000 which has been under contract for a long time).
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.