As the knowledge broker in Northern New Mexico, we’ve been digging into the 2020 mid-year data to help you understand the Taos real estate market.
We start with supply and demand as this is the primary driver of market conditions. Supply is down, yet again, with only 147 homes on the market as of July 1, 2020. This is a 10% decline in single family home inventory compared to this time last year. We know some of this was influenced by the pandemic, but this decline in available homes has been trending in Taos for several years. 108 homes sold in the first half of 2020 which is a 6% decline compared to last year, but certainly not due to lack of buyer demand.
Compared to last year, the under $500K price range has seen a 31% decline in inventory putting it at a 5 month supply. Listing season is off to a slow start this year and the inventory deficit may not recover fully in 2020. This segment of the market is in a seller’s market with multiple buyers frequently competing for the same home but we have not seen notable price increases. We expect upward pressure on pricing this year as demand outpaces supply.
$500K – $1M
On the flip side, the $500K – $1M segment saw a 4% increase in inventory combined with a 11% decrease in sales. This puts this segment in a 18 month supply, a stark difference to the 6 month supply that was observed last year at this time.
$1 Million +
The luxury market picked up one sale in the first half of 2020 but surprisingly, added 92% more inventory to the market. This change provides more competition for sellers and more negotiation leverage for buyers. It will be interesting to see what the second half of 2020 has in store.
Condos and Townhomes
Taos has seen a multi-year trend where condo and townhome inventory was decreasing and sales were increasing. The first half of 2020 observed the opposite. Sales were down 31% with a decrease in every price range and inventory was up 14% this year over last. This data does not include Taos Ski Valley’s new condominium development, the Blake Residences. The new complex has 24 units with starting prices of $1.3M, 12 of which are already pre-sold. Two of which sold in 2020 with one over $2M and the other over $3M. The Blake Residences expects to be open on or before December 1, 2020.
Now more than ever, it’s important to work with a data driven team like ours to help you navigate this market and to ensure that you are comfortable and confident in your decision. To discuss how the current market affects your real estate goals, please give Tara Chisum a call at 575-377-2321.
The chart show the sold market from January through June by year. Date source: TCAR MLS