The Santa Fe, NM metro area housing market is experiencing a notable shift as of January 2025. The Median Sales Price has decreased to $551,000, reflecting a year-over-year decline of 8.1%. This downward trend in sales prices contrasts with the Median List Price, which has risen by 8.7% to $625,000. This divergence suggests a potential gap between seller expectations and buyer willingness, possibly leading to longer negotiation periods and price adjustments.

Despite the drop in sales prices, the market remains active, with Homes Sold increasing by 21.0% year-over-year, totaling 150 units. Pending Sales have also seen a significant rise of 24.2%, reaching 190 units. This uptick in sales activity indicates a robust demand, even as buyers navigate the changing price landscape.

New Listings have surged by 38.5% compared to the previous year, with 169 new properties entering the market. This increase in supply is further supported by a 29.5% rise in inventory, now standing at 597 homes. The Months of Supply have also expanded by 30.0%, reaching four months, suggesting a more balanced market compared to the previous year.

The median Price Per Square Foot has seen a modest increase of 2.8%, now at $342.78, while the Median List Price per square foot has risen by 4.1% to $363.12. These figures indicate a steady appreciation in property values, albeit at a slower pace than list prices.

Homes are taking longer to sell, with the Median Days on Market increasing by 9.0% to 89 days. This extended timeframe may be attributed to the widening gap between list and sales prices, as well as the increased inventory levels.

The average sale to list ratio has decreased by 1.6%, now at 96.1%, indicating that homes are selling closer to their list prices than in the previous year. The percentage of Homes Sold above list price has dropped by 7.4% to 4.7%, further highlighting the shift in market dynamics.

Price Drops have become more common, with a slight increase of 1.4% year-over-year, now at 23.1%. Additionally, the percentage of homes going off the market within two weeks has decreased by 9.1%, now at 24.2%, suggesting that buyers are taking more time to make purchasing decisions.

Overall, the Santa Fe housing market is undergoing a period of adjustment, with increased inventory and New Listings providing more options for buyers. While sales prices have declined, the rise in list prices and continued demand indicate a complex interplay of factors shaping the market's trajectory.