July 2024 Real Estate Market Update for San Juan County

Hello, Bryan Crawford here with New Mexico Dream House at REAL Broker with your July 2024 market update. This month's market data shows interesting trends, specifically a disparity between listing and actual sale prices.

The Numbers: Listing vs. Selling Prices

In San Juan County for July, the average list price was $429,794 while the average sold price was significantly lower at $304,460. This gap had me questioning, so I took a closer look at the median list price, which should give us a more complete picture.

Why does the median matter? When calculating an average, you take the total volume and divide it by the number of homes listed. However, a few high-priced listings (like properties over $2 million) can drastically change that number. The median price is where you line up all the prices and choose the middle one, which in this case offers a more balanced perspective, especially when there's a broad range of property values in a small market.

For July, the median list price was $349,900 and the average sold price was $304,460. This gap is about 10%, showing a much closer alignment than the average list-to-sale price comparison. The median sale price was $269,000. Obviously, houses in lower price ranges are selling more frequently, and high-priced homes take a little longer.

Market Trends: Days on Market and Absorption Rate

The absorption rate—the time it would take to sell off all current listings if no new properties were listed—is 2.7 months. This is slightly longer than last year by about 0.3 months, or roughly 10 days. So, houses are selling slightly slower than last year, but it's not a significant shift.

One notable point is the average days on market, which is 41 days. The median days on market is much lower at 17 days. This discrepancy suggests that while many homes are selling quickly (within one or two days), others are sitting on the market longer. Why? People are pricing their houses too high for the market. Again, with an average list price of $430,000 and an average sale price of $304,000, some properties are overpriced.

Interest Rates: A Welcome Change

Great news—interest rates have dropped to a two-year low. We now see rates just under 6.5% for a 30-year fixed mortgage and in the high fives for 15-year fixed loans. This is great news for buyers, providing more affordability and boosting purchasing power.

The Market Outlook: Slow and Steady Growth

The market continues to grow, albeit slower than in the frenzied years of 2020 through 2022. The average sale price has increased by about $5,000 year over year—roughly 1.5%—giving us decent appreciation.

Final Thoughts and Recommendations

So, what does this mean for you? If you're considering selling, now is still a good time. We have relatively low inventory and steady demand. If you're looking to buy, the better interest rates offer a bit more buying power, allowing you to stretch your budget further than you might have been able to a few months ago.

Feel free to reach out if you want to learn more about buying or selling in Farmington or the surrounding area.