The New Mexico housing market in January 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has decreased by 4.9% year-over-year, settling at $345,100. This decline contrasts with the Median List Price, which has increased by 8.7% to $372,100, indicating a potential gap between seller expectations and buyer willingness.

In terms of Price Per Square Foot, the median price has risen by 4.8% to $196, while the Median List Price per square foot has seen a more significant increase of 15.4%, reaching $220. This suggests that while sellers are optimistic about pricing, buyers are more cautious, possibly due to economic conditions or market saturation.

The number of Homes Sold has increased by 13.1% year-over-year, totaling 674 units. However, Pending Sales have slightly decreased by 1.9%, indicating a potential slowdown in future transactions. New Listings have remained relatively stable with a marginal increase of 0.4%, totaling 899 new properties on the market.

Inventory levels have surged by 20.6%, reaching 3,066 homes, which has contributed to an increase in the Months of Supply to 4.5 months, up by 20% from the previous year. This rise in inventory and supply suggests a shift towards a more balanced market, possibly giving buyers more negotiating power.

The Median Days on Market have increased by 25% to 77 days, reflecting a slower pace in the market. The average sale to list ratio has decreased by 2.1%, now at 95.6%, indicating that homes are selling for less than the asking price more frequently. Additionally, the percentage of Homes Sold above list price has dropped by 1.8% to 2.4%.

Price Drops have become more common, with a 3% increase year-over-year, now at 23.1%. This trend suggests that sellers are adjusting their expectations to align with market realities. Furthermore, the percentage of homes going off the market within two weeks has decreased by 5.1%, now at 20.3%, indicating a slower turnover rate.

Overall, the New Mexico housing market in January 2025 is characterized by a decline in sales prices, increased inventory, and longer market times, suggesting a shift towards a more buyer-friendly environment. Sellers may need to adjust their strategies to remain competitive in this evolving market landscape.