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.
For the full year, the total market (all categories of property) was up 13.3% in terms of the number of transactions, and it was up 21.6% in terms of dollars. Single-family homes, multi-family homes and land sales were up over last year; condo and commercial sales were down.
Single-family homes are the largest component of the market. For the year, unit sales were up 14.1% over last year. The gain would have been even greater there had been more good inventory. There simply isn’t enough supply to satisfy the increasing demand. Good homes in good locations are selling faster, and prices are rising.
IF YOU HAVE BEEN THINKING ABOUT SELLING YOUR HOME, NOW IS A GREAT TIME TO LIST IT!
CALL US FOR A FREE CONSULTATION AND MARKET ANALYSIS!
TOTAL MARKET (all categories of property)
Month of December (2017 vs. 2016)
# of Closed Sales DOWN from 42 to 37 (-11.9%)
Dollar Sales UP from $8.30 million to $10.65 million (+28.3%)
Year to December 31 (Full Year – 12 months)
# of Closed Sales UP from 415 to 470 (+13.3%)
Dollar Sales UP from $100.73 million to $122.49 million (+21.6%)
As the second of these two charts shows, since bottoming out in 2011-2012, the overall market has gained 105% in unit sales, and 130% in dollar sales through 2017. The market has not yet reached the peak level of 2005-2006 –we’re still about 40% below that–but we are gaining on it, and the trajectory has increased during the past two years.
In 2017, SFH accounted for 60% of total market transactions, and 76% of dollar sales. In peak years 2005-2006, SFH were about 42% of total transactions, and about 57% of total dollar sales. In the years since the real estate market downturn, condos, multi-family, land and commercial have not recovered as much as single-family homes.
December unit sales exceeded last December’s by 2 units: 27 vs. 25 (+8.0%). Dollar sales were up 29.3%, from $7,036,400 to $9,096,300.
For the full year, the number of houses sold in 2017 were up over 2016 by 14.1% (284 vs. 249). Dollar sales were up 21.8%, from $76.2 million to $92.8 million. The gain this year would have been even greater if there had been more good homes available for purchase.
Average Prices – The median price for the year was up 5.8%, from $283,500 to $300,000. The average (mean) was up 6.8%, from $306,100 to $326,800.
Price Discounting – For the year, actual selling price averaged 5.1% less than the last asking price when the property went under contract; the average discount from original asking price was 9.4%. 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 a peak in 2007 to the bottom in 2012 – 2013. There was no discernible increase until 2015, when prices started to move up some, but only for good-quality homes in the most preferred areas. We are now seeing prices rising in most cases, due to increasing demand and limited supply; of course, prices in the most preferred areas are rising more than others.
Days On Market – The average days on the market for all the homes that sold this year is 192 vs. 228 in 2016 (-15.8%), Buyers today are moving faster than they historically have here in Taos. The average for the full year 2015 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. The reason is that few buyers relocate to Taos for a job; most home purchasers are discretionary buyers — they don’t have to buy and get settled here, so they have no sense of urgency.
Pending Sales – The number of homes under contract for sale increased slightly from 21 to 22 at the time of this report.
The inventory shortage is affecting average prices, sales prices per square foot, price discounting and days on market!
|Up to $200,000||44||46||190||47||25%||78||31%||77||27%|
|$200,001 – $300,000||40||44||109||46||25%||61||24%||66||23%|
|$300,001 – $400,000||42||44||69||35||19%||49||20%||65||23%|
|$400,001 – $500,000||29||31||39||17||9%||32||13%||33||12%|
|$500,001 – $650,000||24||24||35||20||11%||17||7%||25||9%|
|$650,001 – $800,000||16||18||27||7||4%||11||4%||15||5%|
|$800,001 – $1 million
Inventory – The inventory decreased again in December to a seasonal low of 220 homes listed for sale. In 2017, the number of homes available for purchase during the year ranged from a low of 228 to a high of 329, averaging 285. That is 45% fewer homes on the market than in 2008, when there were 518 homes for sale. The inventory consists of a wide variety of price, style, location, and condition. It is often difficult to find more than 5-6 homes to show a buyer that meet his or her criteria. This has been a limiting factor on sales, if buyers don’t see a home that meets their wants and needs, they don’t buy.
The inventory shortage is affecting number of sales,average prices, sales prices per square foot, price discounting and days on market!
How Home Sales Were Financed:
The percentage of homes financed with conventional loans has increased over the last three years.
Foreclosure Sales – There were two foreclosure sales in December 2017. For the full year, there were 29 foreclosure sales (10% 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 9 bank-owned houses listed for sale; of those, four are under contract (sale pending). The number of foreclosures has diminished steadily over the past several years, both locally here in Taos and nationally.
December 2107 condo unit sales were the same as December 2016 at 5 condos sold. Dollar volume was up 79% from $606,000 to $1,084,600.
Full-year unit sales are 10.4% below last year’s pace (60 vs. 67). But dollar sales are UP 2.4% at $14.60 million this year vs. $14.26 million last year.
The median price year-to-date is up 12.5% ($211,500 vs. $188,000). The average (mean) price is up 14.3%, from $212,900 to $243,400.
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 full year 2017, final sales price has averaged 4.5% less than last asking price when the property went under contract. The average discount from original asking price is 6.7%. For the full year 2016, the discount from original price averaged 11.8%.
Inventory – The number of condos listed for sale increased slightly from 40 last month to 43 at the time of this report. However, of those 28 are at Taos Ski Valley, so there are only 15 condos available for purchase for buyers who don’t want the Ski Valley location.
As with homes, the lack of inventory is constraining sales. This year’s highest inventory was 68 units for sale, which occurred in September. 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||4||4||40||10||20%||22||33%||11||18%|
|$150,001 – $250,000||9||11||50||15||30%||27||40%||29||48%|
|$250,001 – $350,000||9||8||51||14||28%||10||15%||9||15%|
|$350,001 – $500,000||15||10||56||7||14%||6||9%||9||15%|
Of the 60 units that sold in 2017, only eight were at Taos Ski Valley (13%).
Pending Sales – There is one sale pending at the time of this report, a decrease from two last month.
Days On Market – For the full year 2017, the average days on the market was 199 compared to 259 for 2016 (-23.2%); in 2015 it was 328 days; in 2014, it was 237 days.
Cash Sales vs. Loans – Of the 60 condos that sold in 2017, 36 were cash sales (60%), and 24 were financed with a conventional loan (40%). Conventional loans for condos are more difficult to obtain than they were before the real estate bubble burst in 2008: the criteria for a Fannie Mae (FNMA) conforming loan are more stringently applied these days, so that some condo projects do not qualify; even if the buyer is qualified, the lender won’t make the loan.
Foreclosure Sales – Of the 60 condos that have sold this year, 5 were foreclosures (8%).
There were no sales in December 2017, the same as December 2016.
For the full year 2017, there were four sales vs. two in 2016. Total dollar volume for the four sales this year was $1,790,000 vs. $787,500 for the two sales last year. Of the four sales this year, two were duplexes, one was a triplex, and one was a 28-slot mobile home park (which is not truly a multi-family residential building).
Currently, there are eight multi-family properties listed for sale; there are two pending sales.
Investor interest in multi-family should start to increase. The supply of long-term rentals in Taos 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, as interest rates are starting to rise, investors will demand higher cap rates, which will reduce values unless rents increase commensurately, which they may.
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 require two comps in the past 12 months. The triplex that sold in 2017 was a cash purchase.
December land sales dropped significantly from last year: unit sales were 5 vs. 12 (-58%). Dollar volume was decreased from $658,200 to $469,900 (-29%).
For the full year, unit sales were up 30% at 117 vs. 90 tracts sold. Dollar sales were up 58%, from $6.6 million to $10.4 million.
Due to the limited inventory of single-family homes available for purchase, land sales are increasing as some people who want a home in Taos and who cannot find an existing home that suits them are opting to buy land and build a new home. Additionally, there have been some sales of relatively low-priced lots to builders building “affordable” spec homes.
The average median price for the year was up 22.4%, from $52,300 to $64,000. The average (mean) price was up 21.9%, from $73,100 to $89,100.
The highest sale price this year was $700,000, a 12.9-acre tract near Town zoned for four residential units per acre. A 30-acre rural-agricultural tract a few miles south of Taos center sold for $425,000. Of the 117 tracts that sold in 2017, 38 were $100,000 or greater. There were no commercial tracts sold this year.
Price Discounting – For the full year, the final sales price averaged 11.9% less than last asking price; the discount from original asking price was 19.9%. 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 discount from last asking price was 13.4%; the discount from original asking price was 22.4%.
The average days on market for the 117 tracts that sold in 2017 was 473 vs. 464 in 2016; in 2015 it was 605 days; in 2014 it was 390; in 2013 it was 465.
|Up to $50,000||143||145||32||37%||42||47%||46||39%|
|$50,000 – $100,000||186||186||28||32%||31||34%||34||29%|
|$250,001 – $300,000||15||16||3||3%||2||2%||2||2%|
There are currently 15 pending sales, the same as last month.
The inventory increased to 527 tracts listed for sale, up from 526 last month. This equate to a 4.5-year supply at 2017’s absorption rate.
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 December 2017 or December 2016.
For full-year 2017, there were five sales, totaling $2,851,000, compared to seven for the year 2016 that totaled $2,890,800.
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, three are under contract: an 8,750-square foot office/treatment center on the main thoroughfare south of town (asking price $1,150,000); a gallery/retail/residential complex on the main road just north of Taos Plaza (asking price $664,000); and the RV park south of Town with an asking price of $350,000, and which has been under contract for a very long time.