Santa Fe, New Mexico, is a city known for its rich history, vibrant culture, and stunning natural beauty. As people continue to be drawn to this enchanting city, the Santa Fe housing market remains a topic of interest. The delicate balance between supply and demand continues to shape the real estate narrative in Santa Fe, NM, making it a compelling destination for those seeking not just a home but a lifestyle. Let us discuss the trends and forecasts for the Santa Fe housing market.
Current Santa Fe Housing Market Trends
How is this housing market doing currently?
According to Realtor.com, Santa Fe, NM leans towards being a buyer's market, indicating that the supply of homes exceeds the current demand. This scenario opens up opportunities for prospective homebuyers to explore options and negotiate terms in their favor.
Median Listing Home Price Soars
One of the key indicators reflecting the vigor of the Santa Fe housing market is the median listing home price. As of December 2023, the median listing home price stands impressively at $830K, marking a substantial 16.5% year-over-year increase. This upward trajectory hints at the robust demand and desirability of properties in this picturesque city.
Price per Square Foot: A Pivotal Metric
For those scrutinizing every square foot, the median listing home price per square foot comes in at $397. This metric provides a nuanced perspective for potential buyers, showcasing the value proposition in relation to the property size.
Sale-to-List Price Ratio: Deciphering the Bargain Landscape
Understanding the negotiation dynamics in Santa Fe, NM is crucial. The sale-to-list price ratio is a revealing statistic, standing at 93.75%. On average, homes in Santa Fe were sold for 6.25% below the asking price in December 2023, underscoring a buyer-friendly market where shrewd negotiations may lead to favorable deals.
Median Days on Market: A Patience Game
Homes, on average, spend 75 days on the market before finding their new owners. This metric reflects the rhythm of the local market, and although it has seen a slight increase since last month, the extended timeframe emphasizes the importance of patience in the pursuit of the perfect home.
Santa Fe Housing Market Forecast 2024
According to Zillow, the Santa Fe housing market is displaying robust trends, with the average home value standing at $559,380, reflecting a notable 3.8% increase over the past year. Homes in Santa Fe are in demand, going pending in approximately 32 days as of January 31, 2024.
Key Housing Metrics
For Sale Inventory (January 31, 2024): The market presents 572 homes available for purchase, providing prospective buyers with a range of options.
New Listings (January 31, 2024): There are 122 fresh listings, indicating a dynamic market with continuous activity.
Median Sale to List Ratio (December 31, 2023): At 0.982, this ratio signifies the balance between listing and sale prices, offering insights into negotiation dynamics.
Median Sale Price (December 31, 2023): The median sale price stands at $619,167, reflecting the market's valuation of properties.
Median List Price (January 31, 2024): Sellers are positioning their homes competitively, with a $752,650 median list price.
Percent of Sales Over/List Price (December 31, 2023): 14.6% of sales exceeded the list price, indicating strong buyer interest and potential bidding wars.
Percent of Sales Under List Price (December 31, 2023): 67.8% of sales occurred below the list price, showcasing diverse price points in the market.
Santa Fe MSA Housing Market Forecast
In terms of the Metropolitan Statistical Area (MSA) housing market forecast, as of December 31, 2023, the region is expected to experience a slight decline of -0.1% by January 31, 2024. However, this dip is anticipated to be temporary, as projections for March 31, 2024, and December 31, 2024, indicate a rebound with -0.1% and a significant 3.7% increase, respectively.
The Santa Fe MSA, encompassing various counties in the state of New Mexico, serves as a vital economic and cultural hub. Counties within this MSA contribute to the overall vibrancy of the housing market, playing a crucial role in shaping the region's real estate landscape. The size of the housing market in the Santa Fe MSA reflects a dynamic and diverse ecosystem, with trends indicating resilience and potential for growth.
Are Home Prices Dropping in Santa Fe?
Contrary to a downward trend, the Santa Fe housing market is witnessing an upswing in home prices. As of January 31, 2024, the average home value stands at $559,380, marking a 3.8% increase over the past year. This upward trajectory suggests a robust and appreciating market, providing favorable conditions for sellers.
Will the Housing Market Crash in Santa Fe?
Based on current indicators, there is no imminent threat of a housing market crash in Santa Fe. The market shows signs of stability, with a steady increase in home values and a relatively balanced inventory. However, real estate markets are influenced by various factors, and continuous monitoring is essential to identify any potential shifts in the future.
Is Now a Good Time to Buy a House in Santa Fe?
For prospective buyers, the current conditions in the Santa Fe housing market present both opportunities and challenges. The seller's market dynamics may lead to increased competition and potentially higher prices. However, if you find a property that meets your needs, the stability in the market suggests a good time to make a purchase. It's crucial to work closely with a knowledgeable real estate professional to navigate the nuances of the Santa Fe market and make informed decisions.
Santa Fe Real Estate Investment Overview
Is it worth buying a house in Santa Fe, NM? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Santa Fe is a good investment. You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
When considering a real estate investment in Santa Fe, New Mexico, there are several factors to take into account. Here's an overview of some key points to consider when deciding whether or not to invest in the Santa Fe real estate market.
It Has a Strong, Diversified Economy
Santa Fe's economy is primarily driven by tourism, healthcare, government, and education. The city has a relatively low unemployment rate of around 4%, which is lower than the national average. Additionally, Santa Fe has a relatively high median household income of around $70,000, which is higher than the national average. These factors indicate a stable and healthy economy that could provide a solid foundation for real estate investment.
Property Values Are Appreciating
In the Santa Fe Metropolitan Statistical Area, property values are showing signs of appreciation, offering enticing prospects for investors. With a stable short-term market and a forecasted increase in housing prices for both the mid and long-term, this region presents opportunities for those seeking to invest in real estate. The potential for growth suggests that Santa Fe MSA is an attractive destination for investors looking to capitalize on the evolving real estate landscape.
There Is a Large Rental Population
Santa Fe has a significant rental population, with around 40% of residents renting their homes. This indicates that there is a strong demand for rental properties in the area. Additionally, the median rent in Santa Fe is around $1,500, which is higher than the national average. These factors suggest that investing in a rental property in Santa Fe could provide a solid return on investment.
Seasonal Demand Creates an Unusual Opportunity
Santa Fe is a popular tourist destination, particularly during the summer months, which can create seasonal demand for rental properties. This could be an advantage for real estate investors who are looking to rent out their properties on a short-term basis. However, it's important to note that the seasonal demand can also create higher competition for properties during peak tourism season.
It Is More Landlord Friendly than a Few of the Alternatives
New Mexico has landlord-friendly laws, which can provide advantages for real estate investors. For example, landlords have the right to collect a security deposit, charge late fees, and evict tenants for non-payment of rent or lease violations. These laws provide protections for landlords and could make investing in Santa Fe real estate more attractive.
It Is Tax-Friendly for Property Owners
New Mexico has relatively low property taxes, which can be an advantage for real estate investors. Additionally, the state does not have an estate tax or inheritance tax, which could make transferring property to heirs more affordable.
Conclusion
Santa Fe is often overlooked in favor of larger cities in New Mexico or the more exotic, touristy destinations like Taos. However, the recovering real estate market is ripe for investment. Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Santa Fe, NM is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
This article aimed to educate investors who are keen to invest in Santa Fe real estate. Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your research and taking the help of a real estate investment counselor.
References
- https://www.zillow.com/santa-fe-nm/home-values
- https://www.movoto.com/santa-fe-nm/market-trends
- https://www.neighborhoodscout.com/nm/santa-fe/real-estate
- https://www.redfin.com/city/18007/NM/Santa-Fe/housing-market
- https://www.realtor.com/realestateandhomes-search/Santa-Fe_NM/overview
- https://livability.com/nm/santa-fe/business
- https://www.forbes.com/places/nm/santa-fe
- https://www.bestplaces.net/housing/city/new_mexico/santa_fe
- https://sparkrental.com/new-mexico-rental-laws-guide
- https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
- http://money.com/money/4533659/where-retirees-go-winter-months
- https://www.areavibes.com/santa+fe-nm/cost-of-living
- https://www.santafenewmexican.com/life/real_estate/santa-fe-home-prices-increase-as-inventory-goes-down/article_1c24acac-1f61-5da6-a1b1-8415e271238c.html