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 again in April. Total closed transactions were UP 8%; dollar sales were UP 17%. For the year to April 30, total closed sales are UP 12.5%; dollars are UP 14%.
Single-family homes are the largest component of the total market. Through April, SFH accounted for 62% of total transactions, and 78% of dollar sales. 72 homes have sold so far this year vs. 56 during the same period in 2016, an increase of 29%. Dollar sales are $22.5 million vs. $18.4 million, a gain of 22%. The market for homes is definitely going UP this year!
Condo first quarter unit sales in April were up from 4 to 5, but dollar sales were down 15%. For the year to April 30, unit sales are down from 17 to 12 (-29%); dollars are down 32%.
Land sales in April were down 54%, from 13 to 6. Dollar sales were down 59%. Year-to-date unit sales are up from 29 to 30 (3%); dollars are down 14%
Multi-family property sales in April were 1 vs. none last April. Year-to-date sales are 1 vs none for the same period last year; dollar sales are up $405,000.
Commercial sales in April were 1 vs. 1 last April; dollar volume was down 1. Year-to-date unit sales are 2 vs. 2 last year; dollar sales are UP 152%.
The pace of single-family home sales continues to be strong. It’s looking as if 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.
The election is over and the economy is steady-to-improving; so it seems that people are ready to focus on personal goals such as buying a vacation or retirement home, or investing in income property.
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) — 2017 vs. 2016
# of Closed Sales INCREASED from 29 to 31 (6.9%)
Dollar Sales INCREASED from $7,362,000 to $8,611,900 (17.0%)
Year-to-date April 30
# of Closed Sales INCREASED from 104 to 117 (12.5%)
Dollar Sales INCREASED from $25,203,300 to $28,697,200 (13.9%)
April unit sales were 18 in 2017 vs. 11 in 2016 (+63.6%). Dollar volume was $6.2 million vs. $4.5 million (+36.7%).
Year-to-date unit sales are 28.6% above last year: 72 vs. 56 homes sold. Dollar sales are up 22.0%, from $18,427,000 to $22,481,300.
Average Prices – The median price for the year through April 30 is down 4.9%, from $306,000 to $291,000. The average (mean) was also down from $329,100 to $312,200 (-5.1%).
Price Discounting – For the first four months of the year, actual selling price has averaged 4.6% less than the last asking price when the property went under contract. However, the average discount from original asking price is 9.0%. 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 January – April of 2017 was 199 vs. 257 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||Last||Sept.||# of||% of||# of||% of||# of||% of|
|Up to $200,000||54||52||190||47||25%||78||31%||23||32%|
|$200,001 – $300,000||67||60||109||46||25%||61||24%||15||21%|
|$300,001 – $400,000||54||46||69||35||19%||49||20%||15||21%|
|$400,001 – $500,000||35||28||39||17||9%||32||13%||11||15%|
|$500,001 – $650,000||32||28||35||20||11%||17||7%||4||6%|
|$650,001 – $800,000||24||20||27||7||4%||11||4%||3||4%|
|$800,001 – $1,000,000||16||17||36||8||4%||0||0%||1||1 %|
The number of pending sales decreased from 20 to 13 homes under contract.
Inventory – The inventory has started its seasonal increase, gaining from 265 to 296 homes on the market. However, that is still a relatively limited number of available homes. 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.
|How sales were financed||2015||2016||YTD||2017|
Foreclosure Sales – There were no foreclosure sales in April. Of the 72 homes that have sold through April 30, seven were foreclosures (10%). 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 12 bank-owned houses listed for sale; of those, five are under contract (sale pending).
April condo sales were up by 1 unit, at 5 sold this year vs. 4 last year. Dollar volume was up from $232,000 to $250,000 (7.8%).
Year-to-date unit sales in 2017 are 12 vs. 17 for the same period last year (-29.4%). Dollar volume is $2,795,900 vs. $4,132,600 (-32.3%).
The median price so far this year is up 11.4% ($220,500 vs. $198,000). The average (mean) price is down 4.1%, from $243,100 to $233,200.
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 four months of 2017, final sales price averaged 6.6% less than last asking price when the property went under contract. The average discount from original asking price was 10.1%. 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 60, up one from last month. 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||3||5||40||10||20%||22||33%||3||25%|
|$150,001 – $250,000||28||24||50||15||30%||27||40%||5||41%|
|$250,001 – $350,000||9||11||51||14||28%||10||15%||2||17%|
|$350,001 – $500,000||16||15||56||7||14%||6||9%||2||17%|
The number of pending sales remained the same at 4 units under contract.
Days On Market – For the 12 condos sold so far this year, the average days on market was 219 vs. 234 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 12 sales year-to-date, six were cash and six 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%).
Foreclosures – There have been two foreclosure sales so far this year.
There was one sale in April, bringing the year-to-date total to one, which is a gain of one over 2016 for the first four months. For the full year 2016 there were only two sales; in 2015 there were five.
Currently, there are six multi-family properties listed for sale. There are no pending sales at this time. (The 28-slot mobile home park that we reported as being under contract in our last report sold in May, so it will appear in our next report.)
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.
April unit sales were down from 13 to 6 tracts sold (-53.8%). Dollar volume was down 58.7%, from $993,000 to $410,000.
Year-to-date unit sales are still up vs. 2016 but barely: 30 vs. 29. Dollar sales are down 13.7%, from $2,203,700 to $1,902,000.
The median price year-to-date is down, from $50,000 vs. $49,500 (-1.0%). The average (mean) price is also down, from $76,000 to $63,400 (-16.6%).
The highest sale price so far this year is $182,500; it was a 3-acre residential lot in the desirable foothills above the hospital. Of the 30 tracts that have sold, five were over $100,000. There have been no commercial tracts sold.
Price Discounting – For the 30 lots that have sold year-to-date, the final sales price averaged 17.8% from last asking price; the discount from original asking price was 41.5%; 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 30 tracts that have sold year-to-date was 834 vs. 511 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.
Inventory and Sales by Price Category
|—–INVENTORY—–||2008||2015||2016 2017 YTD|
|Current Month||Last Month||Aug 2012||#||%||#||%||#||%||#||%|
|Up to $50,000||148||154||121||32||29%||32||37%||33||42%||15||50%|
|$50,000 – $100,000||184||174||143||33||29%||28||32%||29||37%||9||30%|
|$250,001 – $300,000||10||11||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 April, the same as last April. The sale was a 3,300-square foot building (retail or office) on Civic Plaza Drive, near Taos Plaza. The sale price was $380,000.
Year-to-date, there have been two sales, totaling $1,110,000 compared to two for the same period in 2016 that totaled $440,000.
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 40 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; an old schoolhouse on Randall Lane near the Smith’s Supermarket; and a B & B near Taos center priced at $875,000.
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.