Santa Fe Housing Market: Prices, Trends, Forecast 2023-2024


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. Let us discuss the current trends and forecasts for the Santa Fe housing market.

Current Santa Fe Housing Market Update 2023

How is this housing market doing currently?

One of the striking highlights of the Santa Fe, NM housing market is the remarkable surge in median listing home prices. According to Realtor.com, as of November 2023, the median listing home price stands at a robust $799,000, marking an impressive 11.7% year-over-year increase. This upward trajectory reflects the city’s resilience and attractiveness in the real estate realm, making it a noteworthy trend for potential investors and homeowners.

Sale-to-List Price Ratio and Buyer’s Advantage

Delving into the market dynamics, the sale-to-list price ratio in Santa Fe, NM currently stands at 93.04%. What does this mean for buyers? On average, homes in Santa Fe are being sold for approximately 6.96% below the asking price, presenting a favorable scenario for those looking to make a purchase. The city, as of November 2023, is favoring buyers, positioning itself as a buyer’s market.

Median Days on Market: 62 Days

Time is of the essence in Santa Fe’s real estate landscape, with homes typically spending an average of 62 days on the market before finding a new owner. This key metric provides valuable insights into the pace of transactions and the overall demand for housing. Interestingly, the median days on market have seen a slight increase compared to the previous month, indicating a nuanced shift in buyer behavior.

While the median days on market have experienced a modest uptick, the overall trajectory remains positive. The city’s allure, combined with its unique cultural charm, positions it as a resilient market with potential for growth in the coming months.

Santa Fe Housing Market Forecast 2023-2024

The Santa Fe housing market has displayed resilience, with the average home value reaching $565,605, reflecting a 3.1% increase over the past year. According to Zillow, homes are swiftly moving to pending status, with an average time on market of around 16 days as of November 30, 2023. The for-sale inventory stands at 604, accompanied by 168 new listings.

Notably, the median sale to list ratio, a key indicator of market competitiveness, is at 0.989 as of October 31, 2023. Median sale price and list price are reported at $637,247 and $806,000, respectively. Additionally, 22.9% of sales exceeded the list price, while 55.4% were below the list price based on October 31, 2023, data.

Santa Fe MSA Housing Market Forecast (2023-2024)

The Santa Fe Metropolitan Statistical Area (MSA), encompassing counties in New Mexico, projects a moderate trajectory in the coming months. According to the forecast, from November 2023 to February 2024, a slight increase of 0.1% is anticipated, followed by a marginal decrease of -0.2%. However, the market is expected to rebound by 0.8% by November 2024, indicating overall stability.

The Santa Fe Metropolitan Statistical Area (MSA) comprises various counties in New Mexico and plays a pivotal role in the region’s housing dynamics. This includes defining counties and understanding the size of its housing market, contributing significantly to the overall real estate landscape.

Market Dynamics and Projections

Is It a Buyer’s or Seller’s Housing Market? With the median sale to list ratio at 0.989, Santa Fe’s housing market leans towards a seller’s market, indicating high demand and competitive conditions for buyers.

Are Home Prices Dropping? As of November 2023, home prices in Santa Fe have shown resilience, experiencing a 3.1% year-over-year increase, suggesting no significant drop in prices.

Will This Housing Market Crash? The forecast for the Santa Fe MSA hints at stability, with a modest increase expected by November 2024. However, it’s essential to monitor economic factors and market trends for a comprehensive evaluation of the potential for a housing market crash.

Santa Fe Housing Market Forecast 2023-2024
Source: Zillow

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



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About the Author: Tony Ramos

Article Content Writer We write content articles for all businesses. We produce content that can include blog posts,website articles, landing pages, social media posts, and more. Reach out for more information to mydailyrealestatenews@gmail.com, "Best regards" Tony.

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