The New Mexico housing market in February 2025 presents a complex landscape, characterized by a mix of rising prices and fluctuating sales dynamics. The Median Sales Price has increased to $357,500, marking a 3.8% year-over-year (YoY) rise. This upward trend in sales prices is mirrored by the Median List Price, which stands at $363,600, reflecting a modest 0.4% YoY increase.

Price Per Square Foot has seen a significant rise, with the median Price Per Square Foot reaching $204, an 8.2% increase YoY. Similarly, the Median List Price per square foot has climbed to $215, up by 8.1% YoY. These figures suggest a robust appreciation in property values, indicating strong demand in certain segments of the market.

Despite the increase in prices, the number of Homes Sold has decreased by 5.0% YoY, with 669 Homes Sold in February 2025. However, Pending Sales have shown a positive trend, increasing by 3.7% YoY to 900, suggesting potential future growth in closed transactions. New Listings have also risen by 6.7% YoY, totaling 939, which may help alleviate some pressure on the supply side.

Inventory levels have surged by 22.6% YoY, reaching 3,092 homes, contributing to a significant increase in the Months of Supply, which has doubled to 4.6 months. This increase in inventory and supply indicates a shift towards a more balanced market, potentially easing the competitive pressures seen in previous periods.

The Median Days on Market have increased by 20.0% YoY, now averaging 79 days. This suggests that homes are taking longer to sell, possibly due to the higher inventory levels and increased supply. The average sale to list ratio has slightly decreased to 96.6%, down by 0.8% YoY, indicating that buyers are negotiating more aggressively.

The percentage of Homes Sold above list price has decreased by 1.1% YoY to 3.6%, while Price Drops have increased by 4.6% YoY to 22.5%. These trends suggest that sellers may need to adjust their expectations in response to changing market conditions. Additionally, the percentage of homes going off the market within two weeks has decreased by 4.9% YoY to 27.1%, further indicating a cooling in the pace of sales.

Overall, the New Mexico housing market in February 2025 is characterized by rising prices and increased inventory, with a notable shift towards a more balanced market. While demand remains strong, as evidenced by the increase in Pending Sales, the extended time on market and increased supply suggest that buyers may have more negotiating power in the coming months.