In our last Quarterly Market Report (Q2 2022) we argued that the numbers reflected in the MLS stats didn’t tell the whole story of what was happening during the first weeks of July. Our suspicion was that buyers were pushing back at increased interest rates and all-time high prices (ATH). Similarly, sellers were hoping to continue pushing the ceiling on pricing, thus creating the perfect storm for a challenging market.
Did a Market Correction Happen?
Yes and no. Our predictions were right that the market hit a turning point where days on market (DOM) and sales price/list price ratio (SPLP) both had substantial shifts. First, DOM nearly doubled from June to July. Now that is notable. Likewise, instead of the average sale price being above listing price, we dropped back below to 97%, meaning on average homes were selling below asking price. It’s been months since we’ve seen that!
What does this mean?
Great question and just like the rest of the country and world, we wish we had a crystal ball and could predict the future. What we do know is that homes are selling at or near ATH still at a healthy rate despite the increase in inventory. If you’re a seller, this is still a great time to list your property as you’re likely going to get what you want–just not more. For buyers, you now have more options and bargaining power.
We know for certain that the demand for homes in Santa Fe is still strong and don’t expect any dramatic shifts, but rather some corrective action as outlined here.
The end of Q3 is not that far off so stick around for the next market update!