Considering Retirement In Santa Fe (Albuquerque, Rio Rancho: real estate, 2014, foreclosures)
Santa FeSanta Fe County
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I will be retiring to SF in 2014. I've been planning this for 30 years so I'm not going into this blind as it seems some people do. I've done extensive on-line research regarding real estate but I'd still like to hear some ideas from other people. My first goal is probably the most difficult - I'd love something with a view. Next, it can be single family, townhome or condo but at least 2 bedrooms and 1 and a half baths. Price range - up to about 225,000. Is this unreasonable? Not purchasing anything now but would love some ideas on areas or neighborhoods I should consider.
Speaking as one who knows the market well, what you are looking for is available - to a greater or lesser degree depending on the section of town you decide is best for you.
In your price range, as a general rule, you'd find more of what you want in a condo or town home if you want to be in the north side of town. For a single family home your best bet would be in the south and southwest parts of town.
At this time there are 111 properties on the market within the city limits that have at least 2BR, 1BA and that are listed for up to $225,000. Some do have views. Nine of the 111 are on the north side and the remainder are on the southwest side (if you're looking at a map, figure west of St. Francis and south of Alameda all the way to I-25).
If you'd like to live in, say, Eldorado where you do get views, large lots and more house for the money - but it's about 12-20 minutes from town - there are currently 3 homes on the market for under $225K and 6 with a list price of up to $250K.
Outside the city limits there are 9 such homes listed for up to $250K in Rancho Viejo, a community near the Community College and South of I-25, and 5 off Hwy 14 (Turquoise Trail). There's a total of 8 in these southern areas priced under $225K. Figure you can negotiate somewhere between 1 - 10% off the asking price depending on how fairly priced the home is to begin with (a Realtor can advise you on this).
I hope this gives you a place to start....
Good luck!
Thanks for the helpful information. You've confirmed what I thought the situation was based on what I've found on-line. Of course, who knows what things will be like in 2 years but I'm encouraged that I'll be able to find something. Thanks again!
Thanks for the helpful information. You've confirmed what I thought the situation was based on what I've found on-line. Of course, who knows what things will be like in 2 years but I'm encouraged that I'll be able to find something. Thanks again!
Disclaimer, this is economic theory - this is why I'm looking at NM, again - In 2 years the market should be full of opportunities including newer housing units. Albuquerque, Rio Rancho, and Santa Fe real estate have crashed over the past few years due to Development Impact Fees. Albuquerque and Santa Fe have both cancelled impact fees - Santa Fe has cancelled them for all of 2012 and 2013. This should increase the rate of homebuilding, and depending on whether or not developers decide to file more permits, the amount of inventory on the market will probably also increase. More new homes on the market along with continuing foreclosures may drive prices down even further. Overall, New Mexico has the lowest rate of vacancies in the nation, yet is only one of three states where new home construction increases the number of vacancies!!! These and other conditions including rapidly diminishing unemployment rates, make the state, including Santa Fe, attractive for newcomers and retirees in The West. Whereas other cities in other states are not cancelling impact fees and unemployment remains stagnant. However as with ALL economic analyses mine could be wrong.
Interesting theory, and perhaps your crystal ball is clearer then mine. Let me give you my take:
I don't believe builders stopped building just because of impact fees. They stopped because of the collapse of the housing bubble, and the economic and employment depression. Banks stopped lending as they did in the past and homebuyers put the brakes on. Builders couldn't sell their unsold inventory for a profit and so turned to smaller projects in order to keep in business - which many were unable to do.
Builders will start building new housing units when they feel they can make a fair profit, and when they can get the funding required, and when demand goes up (which we are now seeing in Santa Fe).
Another factor we need to put into the equation is the mortgage loan rate. Just a 1% increase in the mortgage rate means a buyer can afford a 10% lower-priced house. We are already at historically low interest rates, and I don't know anyone who predicts that the rates will go lower. Due to the combination of low housing prices and these low rates our country is at record-setting highs in the home affordability index.
So, if you're considering a $250,000 home when the 30-year rate is 4.0%, realize that should the rate go to 5%, you'd only be able to afford a $225,000 home if you want to keep your mortgage payments the same. If the rates climb to 6% (still low historically) then you could afford a $200K home, unless you don't mind paying, and could qualify for, higher monthly PITI costs.
Thus, fence-sitters are betting that there will be both lower prices and the same or lower interest rates. I can spout off all kinds of statistics about our local market, but you know the old saying "Figures don't lie, but liars figure." TIme will tell which prognosticators are right, and which are wrong. All we know is what is.
Just another question - it seems I've read or heard negative things about the Airport Road area - nothing specific but just avoid it. Any thoughts on the pros and cons of the area and also Tierra Contenta. I've noticed several new and affordable houses in these areas.
Without knowing more about you, your personal tastes in terms of activities, lifestyle preferences, etc. it's a difficult question to answer. In terms of price and age of homes, yes, generally speaking you will find newer-built, less expensive homes in southwest neighborhoods like Airport Road and Tierra Contenta. It's also the fastest-growing part of town and has the highest population of school-aged children. In terms of what you've read or heard about avoiding these areas try to elicit specifics about why they feel that way. If it's about crime rates and that is a concern for you, then contact the Santa Fe Police Department and ask them for comparative crime statistics; if it's about schools and that is a factor for you, then look for neighborhood school ratings; if it's about socio-economic predominance and that is a factor for you, then get demographic data from the City or Chamber of Commerce; if it's about proximity to activities (movies, museums, restaurants, galleries, parks, etc.) and that's important for you, you can map these out....And, of course, come and see for yourself. The preparatory work may help you eliminate certain parts of town from initial consideration, but coming and touring the area should give you a more definitive answer.
Many posters on this forum have frequently commented on what they feel about various neighborhoods - so you might search through various strings which have addressed neighborhood issues in order to get other opinions.
I don't believe builders stopped building just because of impact fees. They stopped because of the collapse of the housing bubble, and the economic and employment depression. Banks stopped lending as they did in the past and homebuyers put the brakes on. Builders couldn't sell their unsold inventory for a profit and so turned to smaller projects in order to keep in business - which many were unable to do.
Builders will start building new housing units when they feel they can make a fair profit, and when they can get the funding required, and when demand goes up (which we are now seeing in Santa Fe).
As a co-owner of a construction/home building company I can tell you this is spot on for any of the builders I know that are still in business. In 2006-2008 we built 16 custom homes. 0 from 2009 till today. We shifted our focus from New Custom Home Construction to Commercial and government construction.
To NMHacker - My hat's off to you for being one of the survivors. There's a lot of pent-up demand in the marketplace and once the dam bursts folks like you and your company will be ready and able to ramp up quickly. Hopefully there will be enough tradesmen left to hire....I know several good ones who have been able to survive by taking on small jobs, but I guess many have left for greener ("oil-patch") pastures, or went on to other kinds of work.
Hang in there amigo....
To NMHacker - My hat's off to you for being one of the survivors. There's a lot of pent-up demand in the marketplace and once the dam bursts folks like you and your company will be ready and able to ramp up quickly. Hopefully there will be enough tradesmen left to hire....I know several good ones who have been able to survive by taking on small jobs, but I guess many have left for greener ("oil-patch") pastures, or went on to other kinds of work.
Hang in there amigo....
We are lucky to have enough work to keep our guys busy. Did have to lay off 2 over the last 1.5 years. Both went to the oil patch known as Hobbs for work. Lots going on down there.
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Thanks!
