2023 Q4 Market Report

2023 will be the year remembered as the year our housing market started to find a new equilibrium. With interest rates peaking and cooling demand, many expected prices to correct more aggressively, however, that still wasn’t the big elephant in the room. Our inventory woes continued into 2023 and that propped up pricing, with the Santa Fe market still showing a modest 2.6% increase in median prices.

Overall demand did slow down, relieving buyers from the pressure of making fast decisions and sometimes frustrating sellers, who otherwise were expecting a frenzy of activity of years past. Our days on the market have returned to a healthy 60-day cycle, indicating we should see pricing stay relatively stable for the time being.

With many new housing projects coming to fruition and more initiatives in the works, we are somewhat optimistic that our housing challenges will start to correct heading into this new year and some balance will return. We are also expecting the Federal Reserve to move slowly in bringing down interest rates, so buyers may need to weigh their priorities if ‘the one’ becomes available anytime soon. In the meantime, we look forward to continuing to help all of you in Santa Fe navigate these market shifts, so please don’t hesitate to stop by the Railyard and say hello–we’re here to help.