As you may recall from our past market reports, the Angel Fire real estate market has been heating up the last few years. The much delayed price correction in late 2015 (and early 2016) resulted in a 48% increase in home sales in 2016 over 2015. This was followed by a 15% increase in 2017 and yet another 22% increase in 2018. For comparison, 2018 saw 159 sales versus the 116 in the bullish year of 2005 and 77 sales in the correction year of 2015. We’re not surprised to see momentum taper off just a bit as the year-over-year growth of the last 3 years is simply not sustainable. The first half of 2019 presents a 20% decline in home sales compared to this time last year. However, with the Buyer demand we’re experiencing in the market right now, the second half of 2019 could very well make up the slightly slower first half of the year.
Date Range: January through June 2018 v 2019 Source: Taos County Association of REALTORS®
The available homes on the market is down 17% compared to this time last year. There was a record low of 161 homes on the market at the midpoint of 2019. This is the lowest we’ve seen in many years. This decline in inventory is causing fewer days on market, closer list-to-sale price ratios, and even some multiple offer situations in the lower price points where the supply and demand results in a Seller’s market. In a resort market such as Angel Fire, a ten month supply of inventory is a balanced market. Less than ten months is a Seller’s market and over 10 months is considered a Buyer’s market. The under $500K segment of the market is currently at an 8 month supply, the $500K-$1M is at a 29 month supply, and the over $1M is at 57 months.
The days on market (DOM) is, quite honestly, all over the place. Average DOM for homes sold in the first half of 2018 was 234, while the average DOM for homes sold in the first half of 2019 was 303. How can this be when we’re experiencing the strongest market Angel Fire has seen in over a decade? Well, there are two segments of inventory to take into account when it comes to DOM. Half of the homes sold this year sold in an average of 66 days, while the other half sold in an average of 556 days. Simply, it comes down to price, condition, and marketing. When these three points are not in alignment with the market demands, a home will become market worn.
Now more than ever, it’s important to work with a data driven team like ours to help you navigate this market and to ensure that you are comfortable and confident in your decision. To discuss how the current market affects your real estate goals, please give Tara Chisum a call at 575-377-2321.