Santa Fe, NM Metro Area Housing Market Analysis - August 2024
The Santa Fe, NM metro area housing market in August 2024 presents a complex landscape with varying trends across different metrics. The data reveals both positive and negative shifts, reflecting the dynamic nature of the real estate market in this region.
Price Trends
The Median Sales Price for homes in Santa Fe stands at $589,000, marking a 4.2% decrease year-over-year (YoY). In contrast, the Median List Price has risen by 6.2% YoY to $697,990. This divergence suggests that while sellers are optimistic and setting higher asking prices, buyers are negotiating lower final sales prices.
The median Price Per Square Foot has seen a modest increase of 1.7% YoY, reaching $359.10. Similarly, the Median List Price per square foot has increased by 4.1% YoY to $380.00. These figures indicate a slight upward pressure on prices per unit area, despite the overall decline in Median Sales Prices.
Sales Activity
The number of Homes Sold in August 2024 is 185, a slight decrease of 0.5% YoY. Pending Sales have also declined by 1.9% YoY, totaling 205. These figures suggest a marginal slowdown in the market's transactional activity.
New Listings have increased by 7.3% YoY, reaching 265. This influx of new properties on the market contributes to the overall inventory, which has surged by 32.5% YoY to 787 homes. The Months of Supply, a critical indicator of market balance, has more than doubled, rising by 110.0% YoY to 4.30 months. This significant increase points to a shift towards a buyer's market, where supply is beginning to outpace demand.
Market Dynamics
The Median Days on Market have increased by 20.0% YoY, now standing at 67 days. This longer duration indicates that homes are taking more time to sell, further emphasizing the cooling trend in the market.
The average sale to list ratio has decreased by 1.7% YoY to 97.3%, suggesting that homes are selling closer to their list prices but with slightly less competition. The percentage of Homes Sold above list price has dropped significantly by 12.3% YoY to 14.1%, reinforcing the notion of reduced buyer urgency and competitive bidding.
Price Drops have seen a minor decline of 1.4% YoY, now at 24.1%. This slight reduction indicates that while sellers are adjusting their expectations, the frequency of price reductions has not dramatically increased. Additionally, the percentage of homes going off the market within two weeks has decreased by 7.4% YoY to 36.6%, further highlighting the slower pace of transactions.
Conclusion
In summary, the Santa Fe, NM metro area housing market in August 2024 exhibits a mix of trends. While list prices and Price Per Square Foot metrics show upward movement, sales prices and transactional activity indicate a cooling market. The significant increase in inventory and Months of Supply, coupled with longer days on market and fewer homes selling above list price, suggest a shift towards a more balanced or even buyer-favorable market. Stakeholders should closely monitor these trends to make informed decisions in this evolving landscape.
