The Santa Fe, NM metro area housing market in February 2025 presents a dynamic landscape characterized by rising prices and increasing inventory. The Median Sales Price has surged to $624,750, marking a significant year-over-year increase of 13.2%. This upward trend in sales prices is mirrored by the Median List Price, which stands at $649,000, reflecting a 4.4% increase from the previous year.

Price Per Square Foot has also seen an upward trajectory, with the median Price Per Square Foot reaching $342.27, a 6.9% increase year-over-year. Similarly, the Median List Price per square foot has risen to $363.57, up by 6.5% compared to last year. These figures indicate a robust demand for housing in the area, despite the rising costs.

In terms of sales activity, the number of Homes Sold has increased by 5.5% year-over-year, totaling 135 Homes Sold in February 2025. Pending Sales have experienced a more substantial rise, with an 18.0% increase, reaching 197. This suggests a strong pipeline of future transactions, potentially driven by the increased inventory available in the market.

Inventory levels have seen a notable rise, with a 27.1% increase year-over-year, bringing the total inventory to 601 homes. This increase in inventory has contributed to a significant rise in the Months of Supply, which now stands at 4.5 months, an 80.0% increase from the previous year. This shift indicates a move towards a more balanced market, offering buyers more options and potentially easing the competitive pressure seen in previous months.

The Median Days on Market have increased by 23.0% year-over-year, now averaging 99 days. This extended time on the market may be a reflection of the increased inventory and higher price points, which could be causing buyers to take more time in making purchasing decisions.

The average sale to list ratio has decreased slightly to 96.6%, down by 1.4% from last year, indicating that homes are selling slightly below their list prices. The percentage of Homes Sold above list price has also decreased by 7.5%, now at 8.9%. This suggests that while demand remains strong, buyers are becoming more price-sensitive.

Price Drops have increased by 4.1% year-over-year, now affecting 20.6% of listings. This could be a response to the increased inventory and longer time on the market, as sellers adjust their expectations to align with current market conditions. Additionally, the percentage of homes going off the market within two weeks has decreased by 4.4%, now at 27.9%, further indicating a shift towards a more balanced market.

Overall, the Santa Fe housing market in February 2025 is characterized by rising prices and increased inventory, leading to a more balanced environment. While demand remains strong, the market is showing signs of stabilization, offering both opportunities and challenges for buyers and sellers alike.