The Santa Fe housing market has been on a steady rise, with homes selling at an average of 3 offers per property, according to data from Redfin. In March 2023, the median sale price of homes in Santa Fe was $539K, up 9.4% from the previous year. This article explores the current state of the housing market in Santa Fe, including sale prices, the competitiveness of the market, migration trends, and natural hazards and environmental risks.
Santa Fe Sale Prices
The median sale price of a home in Santa Fe was $539K in March 2023, representing a 9.4% increase from the previous year. The median sale price per square foot was $339, which represents a 1.5% decrease from the previous year. These numbers indicate a healthy market that has been steadily rising over the past year.
Competitiveness
The Santa Fe housing market is considered somewhat competitive, according to Redfin's Compete Score. Homes sell in around 48.5 days, and some properties receive multiple offers. The average homes sell for about 2% below list price and go pending in around 49 days. Hot homes can sell for around list price and go pending in around 15 days. These numbers indicate a market that favors sellers, but buyers can still find good deals.
Migration Trends
Around 0.32% of homebuyers searched to move into Santa Fe from outside metros. Los Angeles homebuyers searched to move into Santa Fe more than any other metro, followed by San Francisco and Washington. However, 62% of Santa Fe homebuyers searched to stay within the Santa Fe metropolitan area. Tucson was the most popular destination among Santa Fe homebuyers, followed by Boise and Portland.
The statistical data indicates a flourishing Santa Fe housing market that has exhibited steady growth over the last year. Although sellers have the upper hand, purchasers can still find favorable bargains. The city of Santa Fe is a highly sought-after destination for homebuyers both within and outside the metropolitan region. However, potential buyers must take into account the natural hazards and environmental risks prevalent in the area. Nevertheless, Santa Fe remains an alluring location for those seeking a distinctive and picturesque place to reside.
Is Santa Fe a Seller's Real Estate Market?
The following housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. Santa Fe, New Mexico, is a city known for its rich cultural heritage, vibrant arts scene, and stunning natural landscapes. It is also a sought-after location for homeowners looking for a unique lifestyle and excellent investment opportunities.
If you're considering buying or selling a home in Santa Fe, it's essential to understand the current trends and statistics of the local housing market. In this blog post, we'll explore the most recent data on the Santa Fe, NM housing market, including median home prices, sale-to-list price ratio, and median days on the market.
Median Listing Home Price
In April 2023, the median listing home price in Santa Fe, NM was $654.9K, reflecting a 10.1% year-over-year increase. This indicates a healthy appreciation in home values, making Santa Fe, NM, a potentially profitable market for sellers. The median listing home price per square foot was $362, which is slightly higher than the national average. This suggests that buyers are willing to pay a premium for the unique character and charm of homes in Santa Fe.
Sale-to-List Price Ratio
According to realtor.com®, homes in Santa Fe, NM sold for approximately the asking price on average in April 2023. The sale-to-list price ratio was 99.41%, indicating that buyers and sellers were on relatively equal footing in negotiations. This high ratio also suggests that the demand for homes in Santa Fe, NM, is relatively strong, with buyers willing to pay a fair price for desirable properties.
Market Balance
In April 2023, Santa Fe, NM, was considered a balanced market, with the supply and demand of homes being relatively even. This means that neither buyers nor sellers have a significant advantage in negotiations. However, it's worth noting that this can vary by neighborhood, price range, and property type. It's always a good idea to work with an experienced real estate agent who can provide you with up-to-date insights into the local market conditions.
Median Days on Market
The median days on the market for homes in Santa Fe, NM, was 57 days in April 2023. This is slightly higher than the national average, indicating that homes in Santa Fe may take a bit longer to sell. However, it's worth noting that the trend for median days on the market in Santa Fe, NM, has gone down since last month, and slightly up since last year. This could be a positive sign for sellers, indicating that demand for homes is increasing.
Santa Fe Real Estate Market Forecast 2023-2024
The Santa Fe real estate market has been steadily growing over the past year, with the average home value at $528,208, reflecting a 2.7% year-over-year increase as of March 31, 2023. Additionally, the median time to pending is around 29 days, indicating a healthy demand for homes in the area.
MSA Level Forecast 2024
The Santa Fe real estate market is poised for continued growth in 2023-2024, with the average home value expected to increase and the median time to pending remaining stable. Homebuyers and sellers can use this information to make informed decisions about buying or selling a home in Santa Fe. However, it's important to note that the real estate market can be unpredictable, and working with an experienced real estate agent can provide valuable insights and advice for navigating the market.
Santa Fe County is located in the U.S. state of New Mexico. As of the 2010 census, the population was 144,170, making it New Mexico's third-most populous county, after Bernalillo County and Doña Ana County. Its county seat is Santa Fe, the state capital. Also, the Santa Fe Metro Area is centered on the city of Santa Fe, which only encompasses the county of Santa Fe.
Santa Fe’s real estate dynamic stretches across the Mountain States and elsewhere in the country, where similar factors are in play: a shortage of homes on the market, new home construction failing to meet demand, steeply increasing home construction costs, and a shortage of construction workers.
The Santa Fe Housing Market Area (HMA) is coterminous with Santa Fe County and the Santa Fe, NM Metropolitan Statistical Area in north-central New Mexico, approximately 60 miles northeast of Albuquerque between the Sangre de Cristo mountain range and the Valles Caldera National Preserve.
The Santa Fe metropolitan statistical area (MSA) is expected to see growth in home values in 2024. Zillow predicts a 2.5% increase in home values by March 31, 2024, which is in line with the overall forecast for Santa Fe. This growth can be attributed to the continued demand for homes in the area and the limited supply of available properties.
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
As we discussed earlier, property values in Santa Fe have been rising over the past year, reflecting a 2.7% year-over-year increase as of March 31, 2023. Zillow's forecast predicts that this trend will continue in 2023-2024, with a 2.5% increase in home values by March 31, 2024. These figures suggest that investing in Santa Fe real estate could be a wise long-term investment.
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.
The other best place to invest in real estate in 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. Data by Redfin shows that the Albuquerque housing market is not that competitive. Only a few homes in Albuquerque receive multiple offers. The average homes sell for about 3% above the list price and go pending in around 12 days. However, a hot listing can sell for about 7% above the list price and go pending in around just 5 days.
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 the 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.
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
