Despite the many struggles the real estate market in Santa Fe has faced over the past year as a result of economic recession that began in 2008, many real estate experts have reported seeing promising signs of a recovering real estate market in Santa Fe over the past few months. Santa Fe has suffered from high vacancy rates in apartments, declining median sales prices, and sluggish real estate activity. However, in the last several months of 2009, realtors have posted numbers showing that that real estate in Santa Fe is stabilizing, a signal that many real estate experts believe indicates the beginning of the recovery of the Santa Fe real estate market.
The Santa Fe New Mexican has reported that of all the problems that the real estate in Santa Fe has faced over the past year or so, the market for apartments has struggled the most. While most experts expect the majority of the Santa Fe real estate market to improve significantly by mid-to-late 2010, the market for apartments isn’t expected to fully recuperate until sometime in 2011. Realtors have noted that despite a recent spike in single-family home sales, apartments have not attracted many buyers. Many landlords have been forced to significantly lower rents over the past year. The large inventory of apartments has been a sign of the enormous vacancy rates for rental properties in Santa Fe. Many landlords have resorted to offering significant discounts and special deals to entice buyers.
The Santa Fe New Mexican has also noted that despite the continuing struggles of the rental market, the majority of the Santa Fe real estate market has shows signs of a stabilizing market that is ready to rebound in the next few months. Although the median sales price for single-family homes in Santa Fe declined slightly during the fourth quarter, the median sales price is still 16 percent higher than that of 2008. Realtors are also optimistic that the federal tax credit will play a major role in influencing the improvement of the Santa Fe real estate, especially as the expiration date for the tax credit is due to expire in April.