Welcome to my market update for the first half of 2024. Note that this data is for all of Santa Fe county. As usual, the data only captures broad trends in the market and doesn’t really get granular enough to tell the full story. So, I’ve included my insights on each graph below.

Overall, the market is somewhat of a “mixed bag” at the moment so it’s difficult to characterize this as a seller’s market or a buyer’s market. The way I view the current market is as follows:

For properties in excellent condition in higher-demand neighborhoods, sellers still have the advantage and we are still encountering multiple bids with properties selling over the asking price. These types of properties are also selling within several days of hitting the market. This is especially true for properties under $700,000.
For properties not in ideal condition, or in lower-demand neighborhoods, we are seeing a lot of price reductions. These types of properties are staying on the market longer.
High interest rates and prices are a challenge for a lot of buyers, which is fueling high demand for properties in lower price ranges.

Inventory Trends

This chart shows the most interesting trend for the first half of the year. Inventory has increased significantly compared to the previous 4 years. What this means for sellers is more competition when you list your house. For buyers, you may have more inventory to view. However, it should be noted that inventories of homes in the lower price ranges (under $700,000) are still very tight compared to the number of interested buyers and some of those listings are still receiving multiple bids.

Total Properties Sold

This chart shows a slight decrease from 2023 in properties sold year-to-date. Sales are significantly lower compared to the peak years of 2021 and 2022.

Properties Sold vs. Inventory

This is where it gets really interesting! This chart shows a broadly widening gap in the number of properties sold versus the number of properties in inventory. This gap is generally more apparent at this time of year when sellers list their properties in the peak periods of May and June. This data shows a wide disparity between inventory and sales compared to previous years signaling a potentially significant shift in the market. How significant? We won’t really know until we get through the busy summer selling season.

Average Days on Market

Average days on market has decreased slightly from last year, but I suspect this number is misleading. This is because there is usually a surge in inventory starting in May and June and it takes a while for those properties to sell. And, it looks like our inventory is now significantly higher than in previous years. Increased inventory typically means more competition for sales so we should see average days on market increasing in the coming weeks and months.

Average Sold Price

Prices continue to rise modestly across the broader market, but less desirable properties in certain locations are actually seeing modest price declines. I’m seeing a lot of price reductions on listings due to sellers still having higher expectations than what the current market will bear so the market is definitely beginning to shift.

Properties Sold by Price Range

The $500,000-$699,000 range has the highest number of sales. The market is split nearly evenly with 418 sales under $700,000 and 376 sales above $700,000.

The bottom line is this is a complex market with a lot of variables to consider when buying or selling a home. Don’t hesitate to contact me for advice.

Santa Fe Real Estate Market Insights: First Half 2024