Good News for a Bad Market

With the stock and bond markets in turmoil, we thought we’d ask Santa Fe real estate brokers how these unprecedented financial times might be affecting the ebb and flow of their sales. Rumors of doom abound, but reality can be a different thing. For the past 6 months, thirty nine sales have occurred in Santa Fe over $1.5 million—the same statistics for the same period in 07. We started by asking agents about the expensive end of the market, not only what has sold but why.

“The upper end has actually held up well despite all the negative media reports about the housing market and the mortgage crisis,” offered Alan Ball, the new general manager of Southwestern Title and Escrow (and formerly managing broker of Sotheby’s International Realty). “You need to look at closings one at a time, then put them together to find the patterns.”

“I closed this week on my $4,250,000 northside listing for very near to asking price,” Paul Geoffrey said, a broker at Santa Fe Properties. “The buyer called from seeing the property on the internet. The property had been on the market for not even 6 months. When my sellers bought it a few years ago, it had been out there for over a year with different companies.”

“After working with a couple in their 40s for several years,” reported Fran Hill, a Sotheby’s International Realty broker, “last week they closed on an estate in the South Capital that was listed for $2,800,000. They had already owned a home here, wanted something bigger, and to be within biking and walking distance of downtown.”

Lynden Galloway, of Santa Fe Properties, explained, “Fran’s client bought my and Susan Kline’s listing. We had it listed for almost two years. Our sellers were very loyal and patient. They knew we understood this rare Prairie Style house which they loved but couldn’t take with them to Seattle, where their kids and grandkids live.” Added Susan Kline, “People shopping in the upper end view this market as an opportunity to spread the risk—rather than keeping too much in the stock market. This property sale was a platinum example.”

Darlene Streit, managing broker of Santa Fe Realty Partners, said, “The high end market is ending the year stronger than it began. Julee Brooke in our office (Christopher Rocca and David Rosen of Santa Fe Properties were the selling agents) sold her Museum Hill area home for reasonably close its $2,250,000 price. George Mazuera sold his listing in the Upper Canyon Road area which was listed at $1,184,000. The Las Campanas market is also moving. I just closed both sides of a million dollar home to a couple from Denver who found it on the internet.”

“Buyers are motivated by the good deals to be found now,” added George Mazuera. “On my Upper Canyon road sale, the property had been on the market for about 14 months. The buyer was a local, who knew the market. Chris Haynes of Sotheby’s was the buyer’s agent. It helps to have an experienced agent on the other end to work through obstacles in tough times.”

“In September, I closed five homes in Las Campanas,” reported Marion Skubi of Sotheby’s. “Sales to date in Las Campanas reported in MLS equal the same number as in 2007. I think this is because of the lifestyle and amenities the community offers.”

Vivian Nelson of Sotheby’s International Realty closed a very special eastside property this week, the Carlos Vierra home on Old Pecos Trail. It was the first residential property in Santa Fe to sell for over $1 million, by this reporter, over 25 years ago. Said Nelson, “Christopher Webster (Sotheby’s International Realty) and I just closed the Carlos Vierra house originally listed for over three million dollars. My buyers were from Las Campanas. They had taken private tennis lessons with the tennis pro from Las Campanas on the court at the Carlos Vierra house. They love historic houses, but are also keeping their Las Campanas home. Now they have the best of both worlds.”

“There seems to be a trend in the core Eastside. My clients are looking for substantial compounds, with a guest house, parking and garage, privacy and location,” said Kevin Bobolsky, another Sotheby’s agent. “Two of my clients each purchased this type of property this summer in the Acequia Madre neighborhood, for prices that exceeded two million dollars. It’s healthy for the neighborhood that these properties are being kept as larger pieces rather than being split up.”

“I was a listing agent on both of Kevin’s sales,” reported Ann Brunson of Prudential Santa Fe Real Estate. “While May to June was slow, there definitely has been an upturn in the high end market. Selling properties does take an increasing amount of work. I often stage my properties, and do a lot of open houses.”

“My home on Acequia Madre was on the market this cycle for less than 90 days. I’m a swimmer and wanted to move to Las Campanas for easier access to its great pools. Of course, I also like projects. Moving from house to house keeps business going,” said Fulton Murray, owner-broker of Prudential Santa Fe Real Estate.

Brokers also commented that aside from our normal feeder markets such as Texas, Colorado and California, they were seeing some international interest...even from as far away as Dubai! As the world changes, the tapestry that is Santa Fe only grows richer and more interesting.