Farmington, NM Real Estate Market Update – October 2025

If you’ve been keeping an eye on the Farmington real estate market, you’ve probably noticed things starting to shift. After several years of tight inventory and bidding wars, the pace has finally begun to cool—just a little. That doesn’t mean the market has flipped, but it does mean buyers and sellers are finding a new rhythm.

A Seller’s Market That’s Losing Some Steam

Farmington is still technically a seller’s market, but the data tells a story of balance creeping back in.
In October 2025, the absorption rate reached 3.51 months, up from 3.30 months the previous year. That number measures how long it would take to sell all current listings if no new homes hit the market. Anything under four months still favors sellers, but the trend is moving toward neutral ground.

Active listings climbed 9.6% year-over-year (229 vs 209), while the number of sold homes dropped 27.9% (49 vs 68). In simple terms: more homes are available, and fewer are selling. Buyers finally have some breathing room.

Prices Holding Steady, but the Gaps Are Growing

Prices haven’t fallen, but they’ve stopped their steep climb. The median sale price this fall sits at $275,000, nearly identical to last year. The average sale price is $316,074, up only a fraction of a percent.

On a yearly basis, however, the median price is still up 7.84% ($289K vs $268K in 2024). That’s solid growth for homeowners who’ve held their properties for a while.

But here’s where things get interesting: the average active listing price has risen to $452,000, a 3.81% increase. That means sellers are asking much more than buyers are paying. The gap between the average list price and median sale price is now roughly 64%. It’s a classic sign of a market where expectations may not match reality.

Homes That Are Priced Right Still Move Fast

Even with inventory growing, buyers are quick to act on the right home. The average Days on Market (DOM) dropped from 41 to 31 days—a 24% improvement. The median DOM fell even more sharply, from 25 days down to 12, a 52% drop.

What that means: homes that look great, show well, and hit the sweet spot on price are often under contract in less than two weeks. Overpriced listings, on the other hand, tend to sit longer as buyers wait for reductions.

Entry-Level Homes Are Feeling the Pinch

The story is different in the lower price brackets. Homes between $140K–$179K have seen noticeable drops in sales, and the $100K–$139K range is down roughly 40–50% year-to-date.

Affordability pressures and tighter lending standards have made it harder for first-time buyers to compete. Many of those buyers are now sitting on the sidelines, waiting for better interest rates or more flexible loan programs.

What It Means for Sellers

If you’re thinking about selling, now is still a strong time—but pricing is everything. Buyers are comparing homes closely, and they’re skipping listings that seem unrealistic.

To attract attention in this market:

• Price your home based on recent sold data, not just what’s currently listed.

• Stage it well—declutter, brighten, and photograph it professionally.

• Partner with a marketing-driven agent who knows how to position your home online.

Farmington homes that present well and are priced right are still moving quickly, especially in established neighborhoods and newer subdivisions with curb appeal.

What It Means for Buyers

Buyers finally have options again. You may not need to rush into an offer within hours, but you’ll still need to be decisive on homes that check your boxes.

Higher inventory gives you more room to negotiate—especially on properties that have been sitting for a few weeks. Keep an eye on list-to-sale ratios; that 64% pricing gap suggests sellers may start reducing as we head into winter.

If you’re in the luxury bracket, this could be the perfect time to find a property that fits your lifestyle before the next price wave hits in spring 2026.

Final Thoughts

The Farmington real estate market in October 2025 is balancing itself after years of extreme seller dominance. Prices have plateaued in the short term, inventory is climbing, and the most motivated buyers and sellers are the ones finding success.

For homeowners, it’s a time to price smart and market strategically. For buyers, patience may finally pay off—but hesitation could still cost you that perfect home.

If you’d like a detailed analysis of your neighborhood or a custom home-value report, reach out today. Staying informed is the best way to make confident real-estate decisions in a shifting market.