Santa Fe Real Estate Market Less than Rosy in First Quarter 2026

KSFR reporter Mary Lou Cooper interviewed Joshua Maes, Sotheby International realtor and 2026 Santa Fe Realtor of the Year, to discuss a new report on the Santa Fe real estate market in the first three months of the year. The news is not particularly rosy for buyers or sellers. County home sales dropped, and prices dropped but are still high. City home sales stayed flat, but prices increased.
The story for condos and townhomes is that both sales and prices dropped in the first quarter of 2026. For all types of housing combined, inventory is down and days on the market are up.
What’s going on today in the Santa Fe real estate market?
Maes described the market as “surprisingly stable.” Properties that are well-priced and in turn-key condition are moving. Santa Fe is a micro real estate market that is neighborhood driven. It’s all about location, location, location. Maes likened Santa Fe to coastal areas where properties near the beach command higher prices. Our beach is the downtown plaza, and the closer you are, the easier it is to sell quickly.
What advice does Maes offer buyers and sellers?
Don’t wait for the perfect market (It doesn’t exist.) Sellers should focus on realistic pricing and strong presentation. Buyers should take more time as they assess prices and suitability of properties for their own family.
What does the new Santa Fe real estate market report say about housing affordability?
The new report shows a modest gain in the Housing Affordability index from 40 to 44.(Note: an affordability score of 44 means the median local household earns only about 44% of the income needed to buy the median-priced home.)
How does Santa Fe stack up against the national real estate market? It’s not like the typical U.S. market. The Santa Fe median home price is $625k compared to the national median home price of $398k (increased to $408,800 at press time.) Santa Fe is a lifestyle and destination market, a global destination.
What’s causing the uptick in mortgage interest rates to well above 6%?
Mortgage rates are up due to inflation with the war against Iran adding pressure due to energy prices and bond markets. Mortgage interest rates are still below the 7% rates of 2023 but a long way from the lower rates experienced during the pandemic.
What does the Santa Fe real estate market look like for the rest of 2026?
Maes says we should see improved activity for the rest of 2026 but not a roaring surge. If current interest rates settle down, sales should improve. Santa Fe’s destination appeal makes our real estate market more resistant.