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, the median listing home price in Santa Fe, NM stands at a robust $799K, indicating a notable increase of 11.1% year-over-year. This upsurge reflects the enduring appeal of the region's real estate market, attracting both buyers and investors alike.
Moreover, the median listing home price per square foot is $392, reaffirming the value proposition of properties in Santa Fe. Potential buyers can expect quality and value in their investment.
One significant metric to consider is the sale-to-list price ratio, which currently sits at an impressive 94.53%. This statistic underscores the resilience of the market, with homes selling at prices close to their listing values.
Despite the upward trajectory of home prices, Santa Fe, NM remains a buyer's market as of February 2024. This indicates that the supply of homes exceeds the current demand, offering prospective buyers ample opportunities to explore their options and negotiate favorable terms.
Market Forecast
Looking ahead, the outlook for the Santa Fe, NM housing market remains promising. With continued economic stability and sustained demand for properties in the region, experts anticipate further growth and appreciation in home values.
Factors such as the city's unique cultural allure, favorable climate, and robust amenities contribute to its appeal among homebuyers, ensuring a steady stream of interest in Santa Fe real estate.
Median Days on Market
On average, homes in Santa Fe, NM sell after 77 days on the market. While this figure represents a slight increase from the previous year, it underscores the enduring desirability of properties in the region.
Despite the marginal uptick in days on market, Santa Fe continues to attract buyers seeking a blend of luxury, authenticity, and natural beauty. The trend indicates a healthy equilibrium between supply and demand, offering stability for both buyers and sellers.
Santa Fe Housing Market Forecast 2024 and 2025
According to Zillow, the Santa Fe housing market continues to demonstrate resilience and growth, with the average home value reaching $566,125, marking a 3.7% increase over the past year. Properties in Santa Fe are going to pending in approximately 36 days, indicating a swift turnover rate.
As of February 29, 2024, the market boasts 543 homes for sale and 116 new listings, reflecting an active real estate landscape. Additionally, the median sale price stands at $603,500, slightly below the median list price of $726,500. Notably, 10.8% of sales in January 31, 2024, were above the list price, while 72.2% were below it, indicating a diverse range of pricing dynamics within the market.
Santa Fe MSA Housing Market Forecast
The Santa Fe Metropolitan Statistical Area (MSA) housing market is anticipated to exhibit steady growth over the coming months. According to Zillow, the forecast predicts a modest 0.1% increase by March 31, 2024, followed by more significant growth of 0.9% by May 31, 2024, and 1.2% by February 28, 2025. This forecast suggests sustained positive momentum in the region's real estate sector, aligning with broader economic trends.
The Santa Fe Metropolitan Statistical Area (MSA) encompasses the city of Santa Fe and its surrounding counties, serving as a key economic and cultural hub in New Mexico. This region includes Santa Fe County and parts of neighboring counties, collectively representing a diverse array of communities and lifestyles.
With its rich history, vibrant arts scene, and natural beauty, Santa Fe attracts residents and visitors alike, contributing to the dynamic nature of its housing market. The MSA's housing market is substantial, characterized by a mix of traditional adobe homes, modern developments, and luxury properties. As one of the state's premier destinations, Santa Fe's housing market reflects both local demand and interest from out-of-state buyers seeking a unique living experience.
Is Santa Fe a Buyer's or Seller's Housing Market?
In the Santa Fe housing market, the balance between buyers and sellers is currently leaning towards sellers. With low inventory levels and high demand, sellers have the upper hand in negotiations. Buyers may encounter multiple offers on desirable properties, leading to competitive bidding situations. However, this does not necessarily mean it's impossible to find a suitable home as a buyer. Working with a knowledgeable real estate agent and being prepared to act quickly can still result in successful purchases.
Are Home Prices Dropping in Santa Fe?
As of the latest data available, there are no indications of home prices dropping in the Santa Fe housing market. On the contrary, home values have experienced a steady or moderate increase over time. Factors such as limited inventory and strong demand contribute to the stability of prices. However, real estate markets can be subject to fluctuations influenced by various economic and external factors, so ongoing monitoring is essential for both buyers and sellers.
Will the Santa Fe Housing Market Crash?
While the possibility of a housing market crash cannot be completely ruled out, there are currently no imminent signs indicating such a scenario in the Santa Fe market. The market has shown resilience amid economic changes and global uncertainties. However, it's crucial to note that real estate markets are inherently cyclical, and unforeseen events could impact stability. Continuous monitoring of market trends and working with experienced professionals can help individuals navigate potential risks.
Is Now a Good Time to Buy a House in Santa Fe?
For those considering purchasing a home in Santa Fe, the current market conditions present both opportunities and challenges. While competition among buyers may make it more challenging to secure a property, low mortgage rates as compared to last year and a strong local economy can make homeownership an attractive prospect.
Additionally, buying a home is a long-term investment, and the unique attributes of the Santa Fe area, including its culture, lifestyle, and natural beauty, may outweigh short-term market fluctuations. Ultimately, the decision to buy a house should align with individual financial circumstances, lifestyle preferences, and long-term goals.
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
