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. In this article, we will explore the current trends and forecasts for the Santa Fe housing market, providing valuable insights for both buyers and sellers.
Current Santa Fe Housing Market Update 2023
According to Redfin, the Santa Fe housing market is known for its competitiveness, with homes receiving an average of 2 offers and selling in approximately 46 days. In October 2023, the median sale price of a home in Santa Fe was $550K, marking a .0% increase from the previous year. Let's explore the nuances that define this market.
In October 2023, Santa Fe experienced a .0% increase in home prices compared to the previous year, with homes selling for a median price of $550K. The average time a property spends on the market is 46 days, slightly longer than the 40 days recorded last year. Despite this, the market remains somewhat competitive, with homes selling at a rate of 1% below the list price and going pending in around 43 days.
Examining migration patterns, we find that 0.36% of homebuyers nationwide searched to move into Santa Fe from outside metros. Los Angeles leads the list of metros contributing to the inbound migration, followed by San Francisco and Dallas. On the outbound side, Minneapolis is the most popular destination for those leaving Santa Fe, followed by Miami and Boise.
Santa Fe Housing Market Forecast 2023-2024
The Santa Fe housing market continues to show resilience and growth, with the average home value reaching $571,513, reflecting a 2.4% increase over the past year. Homes in Santa Fe are in high demand, evidenced by a rapid 13-day average time on the market before going pending. According to Zillow, as of October 31, 2023, the housing inventory comprises 592 properties for sale, with 192 new listings contributing to the dynamic real estate landscape.
Key Metrics (As of October 31, 2023):
- Median Sale Price: $630,200
- Median List Price: $829,833
- Median Sale to List Ratio: 0.996
- Percent of Sales Over List Price: 26.8%
- Percent of Sales Under List Price: 48.7%
These statistics indicate a robust and competitive market, with a significant percentage of sales occurring both above and below the list price, showcasing the diversity of the Santa Fe real estate landscape.
Santa Fe MSA Housing Market Forecast (2023-2024)
Looking ahead, the Santa Fe Metropolitan Statistical Area (MSA) housing market is projected to experience further growth. According to the forecast data, the MSA is anticipated to see a modest increase of 0.1% by the end of November 2023, followed by stability in January 2024 and a notable rise of 0.8% by October 2024. This forecast suggests a positive trajectory, reinforcing Santa Fe's position as a desirable real estate market.
Counties in Santa Fe MSA:
- Santa Fe County
- Los Alamos County
- Other Surrounding Counties
Size of the Housing Market: The Santa Fe MSA's housing market is substantial, fueled by a diverse range of properties and high demand. As one of the cultural and historical hubs of New Mexico, Santa Fe's real estate market reflects the city's unique charm and attractiveness to both residents and investors alike.
Are Home Prices Dropping?
As of the latest data available, home prices in Santa Fe are not experiencing a decline. In fact, the average home value has seen a 2.4% increase over the past year, indicating a resilient and appreciating market.
Is It a Buyer's or Seller's Housing Market?
The current state of the Santa Fe housing market leans towards being a seller's market. With homes spending an average of 13 days on the market before going pending and a significant percentage of sales occurring above and below the list price, sellers have an advantage in this dynamic and competitive real estate landscape.
Will the Santa Fe Housing Market Crash?
Based on the available data and the housing market forecast, there is no indication of an imminent market crash in Santa Fe. The forecast for the Santa Fe Metropolitan Statistical Area (MSA) suggests a positive trajectory with modest increases, emphasizing the market's stability and potential for growth in the coming months.
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.
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.
The other best place to invest in real estate is Albuquerque, NM. Albuquerque is an often overlooked real estate market in the West because it doesn’t make headlines. However, the strong fundamentals and positive long-term outlook make it a great place to consider investing.
Another sizzling market to invest in real estate in Sacramento, CA. Sacramento is an island of sanity in an overpriced, over-regulated, and overheated West Coast housing market. It reflects the California ideal that most of the state has lost, and that’s we recommend it to investors over the “hotter” California metro areas. These are the same factors causing many Californians themselves to vote with their feet and move here instead of moving out of the state altogether.
One of the reasons to snap up a Sacramento real estate investment over one in the hotter real estate markets is that the area is safer overall. Sacramento has a slightly higher property crime rate than other big cities in cities, but Sacramento has a much lower violent crime rate. People are more concerned about being mugged, raped, or murdered than having their car broken into. The nonviolent crime stats are also skewed due to the more lenient authorities in San Francisco and Los Angeles.
Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, you may fill up the form given here. One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.