New Mexico’s real estate market is experiencing a transition toward a more balanced environment, characterized by increased inventory, moderate price growth, and extended listing durations. Here’s a comprehensive overview:
🏠 Statewide Market Overview
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Median Sale Price: In April 2025, the median home sale price in New Mexico was $368,700, reflecting a 4.8% year-over-year increase.
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Average Home Value: The average home value stood at $314,299, marking a 2.8% increase over the past year.
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Sales Volume: Approximately 832 homes were sold in April 2025, a 2.6% decrease compared to April 2024.
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Days on Market: Homes spent a median of 64 days on the market in April 2025, up from previous periods, indicating a slower sales pace.
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Inventory Levels: The number of homes for sale increased by 19.7% year-over-year, signaling a shift towards a more balanced market.
🌆 Regional Highlights
Albuquerque Metro Area
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Market Trends: Albuquerque continues to exhibit robust demand, with home prices projected to rise by 3% to 4% in 2025. The median days on market is approximately 43 days, reflecting a relatively brisk sales pace.
Santa Fe
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Market Trends: The Santa Fe housing market has cooled, with the median home sale price decreasing by 1.3% year-over-year. Homes spend an average of 90 days on the market, indicating a slower sales cycle.
📈 Market Dynamics
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Affordability Challenges: High home prices and mortgage rates hovering between 6.25% and 6.75% are impacting affordability, particularly for first-time and middle-income buyers.
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Price Adjustments: Approximately 22.5% of homes experienced price drops, up from previous periods, suggesting increased price flexibility for buyers.
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Sale-to-List Price Ratio: The sale-to-list price ratio is 95.6%, indicating that homes are selling slightly below their listing prices.
🔮 Market Outlook
The New Mexico housing market is expected to continue its trajectory of modest price growth and increased inventory through the remainder of 2025. While affordability remains a concern, especially with mortgage rates stabilizing around 6.5%, the increase in inventory provides more options for buyers. Regional variations will persist, with areas like Albuquerque experiencing steady growth, while markets like Santa Fe may continue to cool.