The data for 2024 is in, and the housing market has once again delivered surprises. Two major trends stand out as we step into 2025. While these trends are being seen nationwide, they also influence Santa Fe, New Mexico, in unique ways. This makes having a consultation with a local, experienced Realtor—such as Emily Medvec, who knows the data and larger market important.
Affordability Challenges Continue
Affordability remains a key issue. Nationally, home prices ended 2024 slightly higher, and mortgage rates are starting 2025 at over 7%, their highest levels in seven months. For buyers, this means the typical monthly mortgage payment has reached a record $2,290—an all-time high for the start of a year.
Although there’s been a recent uptick in sales compared to last year, that momentum could stall if interest rates remain elevated into the first quarter. Affordability is a game-changer, and higher rates push homes further out of reach for many buyers. It’s also why homes are staying on the market about 20% longer than they did a year ago. The quickest way to make housing more affordable is a drop in interest rates, but as we know, that’s not always in our control.
Will More Sellers Return to the Market?
The other trend to watch is whether more sellers will step back into the market in 2025. Since the start of the pandemic and its impact on the economy, Altos Research reports “a sharp drop in new listings, with around 60,000 homes listed weekly compared to 80,000 in pre-pandemic years.” However, there are signs this trend could shift, with seller activity showing hints of returning to more typical levels. Inventory increased in Santa Fe in 2024, not to pre-pandemic levels, however there are more homes on the market.
What Does This Mean for Santa Fe?
Santa Fe’s housing market often mirrors national patterns to some extent, but our local nuances matter. Affordability and inventory challenges have their own flavor here, shaped by our unique demand for second homes, historic properties, and Santa Fe’s distinct charm. As we start 2025, you may be surprised at the large number of homes on the market priced at $450,000 or below. Click on this link to see what is available. At the same time, when builders begin to switch to BTR “Built to Rent” homes, such as the new development near Presbyterian Hospital, many homebuyers will not have the homeownership path to wealth. This trend popping up here could shift our Santa Fe future home prices.
If you’re thinking about buying or selling in 2025, understanding the bigger picture while focusing on Santa Fe’s specifics is key. Let’s start with a conversation to explore your goals and navigate this evolving market together. There is obligation or fee for a consultation. Things are changing quickly, so let’s not put your housing questions off if you plan to sell or purchase in 2025. Thank you for reading, Emily Medvec
