Note: These data exclude some areas of the Taos MLS which we do not consider relevant to the main Taos market: Angel Fire, Eagle Nest, Red River, Raton, Chama, Mora, San Miguel County, Other.
August was the first month this year that single-family home unit sales did not exceed the same month in 2016: they were down by two. Year-to-date, sales are still up substantially. Single-family homes are the largest component of the total market. Through August, SFH accounted for 62% of total transactions, and 77% of dollar sales.
Condo sales were down in August by 5 units over last year. Year-to-date sales are well below last year’s pace.
Land sales were much higher again in August, and they are up year-to-date.
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 August (2017 vs. 2016)
# of Closed Sales DECREASED from 42 to 37 (-12%)
Dollar Sales INCREASED from $7,688,900 to $8,867,400 (+15%)
Year to August 31 (8 months)
# of Closed Sales INCREASED from 243 to 286 (+18%)
Dollar Sales INCREASED from $58,670,800 to $72,525,100 (+24%)
August unit sales lagged last August’s by 2 unit: 24 vs. 26 (-8%). But dollar sales were up 23%, from $5,649,900to $6,920,400.
Year-to-date, the positive variance for houses sold 2017 vs. 2016 has decreased from to 23% (176 houses sold through eight months this year vs.143 for the same period last year. Dollar sales are up 28%, from $43.5 million to $55.6 million.
Average Prices – The median price year-to-date is down 1.3%, from $298,900 to $295,000. The average (mean) is up 3.9%, from $303,900 to $315,700.
Price Discounting – Through the first eight 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 9.2% 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 August this year is 204 vs. 258 for the same period last year (-21%). 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||53||59||190||47||25%||78||31%||51||29%|
|$200,001 – $300,000||65||66||109||46||25%||61||24%||38||22%|
|$300,001 – $400,000||70||70||69||35||19%||49||20%||41||23%|
|$400,001 – $500,000||46||43||39||17||9%||32||13%||23||13%|
|$500,001 – $650,000||33||34||35||20||11%||17||7%||13||7%|
|$650,001 – $800,000||31||31||27||7||4%||11||4%||8||5%|
|$800,001 – $1 million
The number of pending sales decreased from 28 to 27.
Inventory – The inventory decreased slightly, from 329 to 323 homes listed for sale. The inventory consists of a wide variety of price, style, location, and condition; the current inventory is relatively low. (In September 2008, there were 518 homes listed for sale.) It is often difficult to find more than several homes to show a buyer that meet his or her criteria. As a result, the number of sales has been constrained, since most Taos buyers are not in a hurry to buy.
How Home Sales Were Financed:
Foreclosure Sales – There were 3 foreclosure sales in August 2017. Through the first eight months this year, there have been 19 foreclosure sales (11% 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 11 bank-owned houses listed for sale (down from 12 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.
August condo unit sales were down sharply from August of last year (1 vs. 6). Dollar volume was down from $1,310,500 to $186,400 (-86%).
Year-to-date unit sales are 34% below last year’s pace (25 vs. 38). Dollar sales are down 34% at $5.5 million this year vs. $8.4 million last year.
The median price year-to-date is up 6.2% ($205,000 vs. $193,000). The average (mean) price is down 0.2%, from $220,100 to $219,600.
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 eight months this year, final sales price has averaged 6.2% less than last asking price when the property went under contract. The average discount from original asking price is 8.6%. For the full year 2016, the discount from original price averaged 11.8%.
Inventory – The number of condos listed for sale increased from 66 last month to 68 at the time of this report. As with homes, the inventory is relatively low, and it is a limiting factor on sales. 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. However, the most critical constraint on condo sales has been financing: it is more difficult to get a federally-insured loan for a condo today than it was before the financial crisis of 2008.
|Current||Last||Sept.||# of||# of||# of|
|Up to $150,000||8||6||40||10||20%||3||22%||4||16%|
|$150,001 – $250,000||23||22||50||15||30%||7||50%||15||60%|
|$250,001 – $350,000||16||14||51||14||28%||2||14%||3||12%|
|$350,001 – $500,000||16||17||56||7||14%||2||14%||3||12%|
There are 7 pending sales, up from 3 at the time of last month’s report.
Days On Market – The average days on the market through eight months this year is 192 compared to 269 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 25 condos that have sold so far this year, 16 were cash sales (64%), and 9 were financed with a conventional loan (36%).
There was sale in August 2018, equal to August 2016. The ale this year was a duplex that sold for $210,000.
Year-to-date there have been four sales vs. one through the same period last year. Total dollar volume for the four sales this year was $1,790,000 vs. $112,500 for the one sale last year.
Currently, there are five multi-family properties listed for sale; there are no pending sales.
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. Additionally, obtaining financing for multi-family properties of more than two units is difficult because the lack of sales means that there are not enough comparable sales for lenders: they generally want two comps in the past 12 months.
August 2017was another up month for land: unit sales were 11 vs. 9 last year (+227%). Dollar volume was up from $616,000 to $1,550,600 (+152%).
Year-to-date unit sales are up 38% at 76 vs. 55 tracts sold. Dollar sales are up 61%, from $4,242,700 to $6,837,100.
The median price year-to-date is up 16%, from $53,000 vs. $61,400. The average (mean) price is up 17%, from $77,100 to $90,000.
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. In August, a 30-acre rural-agricultural tract a few miles south of Taos center sold for $425,000. Of the 76 tracts that have sold this year, 23 were over $100,000. There have been no commercial tracts sold.
Price Discounting – Year-to-date, the final sales price has averaged 13.2% less than last asking price; the discount from original asking price is 26.5%. This average was skewed by four 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; the 12.9-acre tract noted above which had an original price of $1 million and sold for $700,000; and a 151-acre rural parcel that had an original price of $425,000 and sold for $250,000. 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 76 tracts that have sold year-to-date was 514 vs. 506 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||159||156||32||37%||42||47%||29||38%|
|$50,000 – $100,000||206||201||28||32%||31||34%||24||32%|
|$250,001 – $300,000||15||14||3||3%||2||2%||0||0%|
There are 13 pending sales, down from 15 last month.
The inventory is 598 tracts listed for sale, up from 585 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 the month of August this year or last year.
Through the first eight 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 34 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. Until the general Taos economy strengthens significantly, commercial real estate sales will probably remain feeble.