It is fascinating to observe the effects of two major forces on our Santa Fe real estate market.The psychological impact of Covid-19 has been profound. From seeking safety to re-examining one's life, Covid has people looking at where they want to live through a new lens. Combining this with the technological advances enabling many to work from places of their choosing, the real estate landscape has likely forever changed.
Interestingly, pre-Covid, we here in Santa Fe were already seeing many folks looking to get out of states and cities with over crowding, debilitating taxes, high crime, etc. And while the technology has existed for at least a decade to "work from home", Covid forced the use of it (wished I'd held onto my Zoom stock) and the resulting real estate market forces have been nothing short of startling.
The result in Santa Fe (and many markets around the country) has been an explosion of demand and, at least for the moment, a dearth of supply. Ensuing bidding wars have been stressful and in my opinion unsustainable. So what happens when the population feels "safe" again?
All signs as of this writing point to a psychological shift coming soon. By late Spring it appears we will have achieved a level of herd immunity. Will some return to the places they have been leaving the last year? Will some tell their friends and family they have discovered a great alternative place to live and have them follow? Will some employers ultimately determine that working from home is not the most productive way to run a business? (data is mixed on this at the moment). Time will tell.
While admittedly my crystal ball has a few cracks and some odd fog on occasion, I suspect that the current frantic pace will ease sometime after this summer. Hopefully this will result in at least some rebalancing of supply and demand. But one thing appears clear; real estate has forever changed and many will have found new and wonderful places to live like Santa Fe.
