There is a reason people find themselves drawn to Santa Fe. Between the high-desert climate, the incredible art scene, and that distinct Pueblo-style architecture, living here is a lifestyle choice as much as a housing decision. However, if you have been watching the headlines—or just browsing listings—you likely want to know what is actually happening with the numbers.
The frantic pace of the post-pandemic years is largely behind us. We are seeing a shift away from the "sight-unseen" bidding wars toward a more normalized, traditional real estate cycle. For buyers, this means you can finally take a breath. For sellers, it means strategy matters more than ever. The market is transitioning toward a balanced state, but it certainly hasn't lost its value.
Santa Fe Housing Market Snapshot: Q4 2025
Let’s get right into the current conditions. If you look at the recent data coming out of the Santa Fe Association of Realtors, the story isn't about crashing prices; it is about a change in velocity. Homes are simply moving at a calmer pace than we saw two years ago.
While demand for Santa Fe remains high—thanks to our status as a premier retirement and second-home destination—the urgency has cooled. We are currently in a transition period. In the most desirable price bands and neighborhoods, it still leans slightly toward a seller’s market because inventory is finite. However, across the board, the leverage is shifting. Buyers have more options and more negotiating power than they have had in years.
Here is a quick look at where the numbers stand right now:
Median Sold Price: The median price for a single-family home is hovering in the $680,000 to $690,000 range.
Inventory Trends: We are seeing double-digit year-over-year increases in available homes.
Days on Market: This has jumped significantly. It is now common to see homes linger for 50 to 60 days or more before going under contract.
If you want to dig deeper into specific neighborhood stats, checking our latest Santa Fe market reports can help you spot the micro-trends in different zip codes.
Home Prices & Valuation Trends
One of the biggest questions I get over coffee is, "Are prices going to drop?" So far, the data says no—at least not in a dramatic way. While sales volume (the number of transactions happening) has dipped, home values have remained surprisingly resilient. In fact, year-over-year, we are still seeing slight appreciation or stabilization rather than a decline.
The median price for a single-family home in the region is currently sitting around $687,000, which represents a roughly 2.6% increase compared to last year. This stickiness in pricing comes down to scarcity. Santa Fe has strict building codes, limited developable land, and a constant stream of incoming buyers who want that specific "Santa Fe look."
There is a distinct split in the market when you look at property types. While single-family homes command that higher median, the condo and townhome market offers a different entry point.
Single-Family Median: Approximately $687,000.
Condo/Townhome Median: Hovering in the $460,000 range.
Prices haven't crashed despite higher interest rates because a significant portion of our market involves cash buyers or those with substantial equity rolling over from other high-cost markets.
Inventory Levels and Days on Market
This is where the day-to-day experience of buying or selling has changed the most. During the peak of the frenzy, inventory was so scarce that if you didn't see a house within three hours of it hitting the MLS, you missed it. That is no longer the case. Inventory is slowly returning to historic norms.
We measure market health by "Months Supply of Inventory" (MSI). A balanced market usually sits between 4 and 6 months of supply. We are rising toward that range now, specifically in the higher price points. This increase in supply means buyers can view a home, go home to sleep on it, and maybe even view it a second time before writing an offer.
Because of this, the "Days on Market" (DOM) stat has ticked up. Single-family homes are taking about 38% longer to sell than they did last year. If you are thinking about selling your home in Santa Fe, patience is now a requirement. A house sitting on the market for two months doesn't necessarily mean something is wrong with it; it just means the market has returned to a normal rhythm where buyers are taking their time to make the right decision.
The Santa Fe Luxury & Second Home Market
The luxury sector here operates almost independently of the general market. In Santa Fe, the "luxury" threshold typically starts around $1,000,000, and this segment is driven heavily by wealth migration, retirees, and second-home buyers.
Because these buyers are often less sensitive to mortgage interest rates—cash offers are very common in this bracket—prices in areas like the Historic Eastside or the golf community of Las Campanas have held firm. However, luxury inventory is unique. A sprawling adobe estate with custom artistic features appeals to a very specific buyer. Consequently, these homes often sit on the market longer than the average tract home, even in a hot market.
If you browse luxury listings right now, you will see more inventory than before, but high-end sellers are often willing to wait for their price. The unique architecture and views that define Santa Fe luxury real estate mean that comparable sales data only tells half the story; the emotional connection to the property often dictates the final price.
Comparison: Santa Fe vs. Albuquerque Housing Market
For many people relocating to New Mexico, the choice comes down to the "City Different" (Santa Fe) or the "Duke City" (Albuquerque). While they are only an hour apart via I-25, the real estate markets are worlds apart.
The most obvious difference is the price tag. Santa Fe is significantly more expensive—often nearly double the cost of its southern neighbor.
Albuquerque Median Price: Typically lands between $340,000 and $360,000.
Santa Fe Median Price: Consistently holds above $680,000.
It really comes down to lifestyle trade-offs. Albuquerque offers big-city amenities, a larger job market, and much more affordable housing. Santa Fe offers a smaller-town feel, world-class art markets, and a tourism-driven economy.
Some buyers try to split the difference by looking in areas like Placitas, which sits between the two. However, if you are commuting, you have to factor in gas prices and time. Ultimately, you pay a premium for the Santa Fe address, but for those who value the specific culture and climate here, that premium is usually worth it.
Santa Fe Real Estate Market Forecast for 2026
So, where is this all heading for the rest of 2026? If you are waiting for a bubble to burst, you might be waiting a long time. The consensus among local experts is that we will see continued stabilization rather than a crash or a boom.
Interest rate fluctuations will continue to be the throttle for the market. If rates dip, we expect activity to pick up immediately. If they stay flat, the market will likely cruise along at this current, moderate pace. Inventory will likely peak in the summer and fall, which is typical for our seasonal cycle.
For Buyers: You currently have leverage regarding repairs and concessions. Sellers are more open to fixing that stucco issue or offering a credit for a rate buydown than they were a year ago.
For Sellers: Pricing correctly from day one is critical. In a market where inventory is rising, an overpriced listing will stagnate. If your home sits for 90 days, buyers start to wonder what is wrong with it. Accurate pricing is the best marketing tool you have right now.
Frequently Asked Questions
Is housing expensive in Santa Fe, NM?
Yes, relative to the rest of New Mexico and the national average, Santa Fe is a higher-cost market. The median home price here is significantly higher than the state average, driven by high demand for second homes, strict land-use codes, and its popularity as a retirement destination.
Is Santa Fe currently a buyer's or seller's market?
The market is currently transitioning toward a "Balanced" state. While it still leans slightly toward sellers in the most desirable price ranges due to limited inventory, overall activity has softened, giving buyers more negotiating power than they have had in recent years.
What is the average home price in Santa Fe?
It is best to look at the median price to avoid skewing from ultra-luxury sales. Currently, the median sales price for a single-family home in the Santa Fe region is approximately $687,000.
Are home prices dropping in Santa Fe?
Prices are not plummeting, but price growth has flattened. We are seeing stabilization rather than a sharp decline. While you might see price reductions on individual listings that started too high, the overall median values have remained resilient.