Jake's Take January 2024 Draft

JAKE’S TAKE January 2024 - Santa Fe, New Mexico

Sotheby’s International Realty

Visit Us www.neillyon.com

The Long Take: Who You Work With Really Matters This month the Consumer Federation of American issued a landmark report on the state of the residential real estate business from an agent productivity perspective. The January 2024 report is titled: “A Surfeit of Real Estate Agents 3: Abundant jobs, Inadequate Mentorship, and Few Sales”.

The findings shed a bright light on the large number of agents and brokers in the US and the significant share of those agents who produce little or no business. The summary of the report shows that 49% of the agents had none or only one sale in the previous year while 70% had five sales or fewer.

With this as the backdrop, we thought it would be interesting to see how the Santa Fe real estate market lined up to the national findings, using the Santa Fe Association of Realtors Multiple Listing Service as the information source: On December 31, 2023 there were 905 brokers who appeared on the list of brokers involved in the Santa Fe MLS. During 2023 there were 6,299 closed transactions. This resulted in the average broker completing just under 7 transactions.

Looking at the details of the 905 brokers’ production for the year showed that 23% of the brokers (206) were involved in one transaction or less and 63% of the brokers (571) were involved in five or less transactions.

Santa Fe’s brokers were more productive than the national average but the bulk of the transactions were completed by a small number of brokers with 40 brokers completing 25 transactions or more. These 40 brokers generated 24% of the total transaction meaning that 4% of the brokers completed 24% of all transactions.

It is interesting to note that 234 of the 6,299 transactions were completed by brokers who were not members of the Santa Fe MLS. Those transactions were 4% of the total.

We are happy to report that the Lyon Group completed nearly four times the average number of transactions per broker and our average sales price was a bit more than 2.5 times the market average sales price.

Jake’s Take

To add further to the idea that who you work with really matters, Sotheby’s International Realty in Santa Fe again showed its market dominance. Based upon the volume of properties sold, of the top 15 individual brokers in the market, 10 of them (67%) were Sotheby’s brokers.

From a market share perspective, Sotheby’s had a market share of the total market nearly 28%. The combined market share of the #2 and #3 companies was just under 26%.

In the $1,000,000 to $2,000,000 segment of the market, Sotheby’s market share was over 40%. The combined market share of companies #2 through #4 was just over 37%. The remaining companies market share was just over 22%.

Who you work with matters. We are proud of our team’s leadership position in the market and we are equally proud of the dominant position Sotheby’s International Realty holds in our market.

The Lyon Group

In the market above $2,000,000 the Sotheby’s market share was over 64% of the total market. Companies #2 through #4 combined for a market share of just under 31%. After the top four companies, the rest had a market share of just under 6%.

2024

• In 2023, Colorado was the second biggest feeder market for Sotheby’s brokers, behind Texas and ahead of California.

• The number of available homes for sale (571) is consistent with last January but down 23% from August 2023 (the peak of inventory last year).

• It’s taking on average 51 days for a property to sell, which is similar to January 2023 (49 days) and the 2023 annual average (48 days).

• Sellers are getting on average 96.1% of their asking price.

• Of the eight properties above $1,500,000 to sell so far this year, all either had a price reduction or buyer terminated a contract prior to selling.

• Last year we saw a 25% increase in inventory of properties above $1,500,000 over the first quarter of the year. We expect a similar dynamic this year.

• Regardless of price, buyers are frustrated by a lack of quality options.

• Many Sellers appear to be targeting the Spring to list their properties.

Jake’s Take

Short Takes from the Santa Fe’s Residential Market:

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Sotheby’s International Realty

Visit Us www.neillyon.com