Taos Real Estate Market Report
January – December 2024 (12 months)
The downward trend that began after the 2022 market peak continued in 2024.
For the full year 2024, the number of sales of Single-Family Homes, Condos and Land were all below last year’s pace. Multi-Family and Commercial sales were both up.
The boom in residential sales that began in mid-2020, fueled by the Covid pandemic and ultra-low interest rates, peaked in late 2022. The market has been trending down since then. 2023 was down vs. 2022, and 2024 was down vs. 2023. Buyers are not as plentiful or as eager to buy as they were during the boom. Mortgage rates appear to be stuck in the 6%-7% range, although this was fairly normal in the years before the Great Financial Crisis of 2008. Buyers and sellers will adjust to this new reality. In 2025, market activity should gradually start to pick up. The long-term trend for Taos remains positive. This community will continue to draw people for whom the climate, natural beauty, lifestyle and culture here are attractive.
Click each title below to view the discussion and data for that property type.
Unit sales were 6% fewer than last year, but dollar sales were up 2%, as prices continued to rise.
For the full year 2024, the number of closed sales was 248 this year vs. 264 last year, a decrease of 16 sales (-6.1%). Dollar sales were up by 2.2%, from $143.9 million to $147.0 million. Even though the number of buyers has diminished over the past two years, the supply of homes for sale remains inadequate for the demand. This is keeping prices moving up, albeit not as rapidly as during the 2020-2022 boom market. This year, the number of showings of homes has decreased, and market behavior has become more “normal.” If a buyer doesn’t really like a home’s style and/or location, or if the price seems too high, he/she won’t buy it. During the boom, buyers were so determined to get a house here that they were much less picky. There were many cases of homes getting numerous showings immediately upon going on the market, multiple offers (often with price escalation clauses), and sales at full asking price or higher. These days, we are seeing many listings have one or more price reductions before they sell.
In 2025, home sales will continue to be constrained by a lack of inventory. There probably won’t be an appreciable increase in spec building, and mortgage interest will probably remain above 6%; therefore the imbalance between supply and demand will keep prices buoyant.
Median and Average Prices
The median price (midpoint in the range of sales prices from low to high) for the year was $532,500 this year vs. $475,000 last year, a gain of $57,500 (+12.1%). The average (mean) was $592,800 vs. $545,000, an increase of $47,800 (+8.8%). Here is how median and average prices have changed since 2016:
| Price | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
| Median | $283,500 | $300,000 | $310,500 | $322,500 | $343,500 | $425,000 | $469,000 | $475,000 | $532,500 |
| Average | $306,100 | $326,800 | $369,500 | $373,100 | $398,700 | $513,800 | $558,900 | $545,000 | $592,800 |
Since 2020, when the market surge started, median price has increased 55%; the average has gained 49%. In addition to the overall price level rising, there has been an increase in sales of higher-priced homes. Buyers coming to Taos who sold a home in more expensive markets (e.g., California), or who had big gains in the stock market, could afford pricier homes here. Just looking at the $1 million+ segment, the number of sales increased from 4 in 2019 to 33 in 2022 before coming down to 21 in 2023, and 17 in 2024. The highest sale price in 2024 was $2,575,000 for a home at Taos Ski Valley.
Price Discounting
For the full year 2024, actual sales price averaged 3.6% below the last asking price when the home went under contract; the discount from original asking price was 9.4%. These average discounts are much higher than what occurred during the market surge. In 2021 the discount from original price was only 4.5%; in 2022 it was 3.8%; in 2023, it had increased to 8.4% in 2023. In the past two years, buyers have been able to negotiate more discounts, especially on some listings that were priced as if the market were as hot as it was during 2020-2022
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
| 18.4% | 16.9% | 13.9% | 13.3% | 9.4% | 10.3% | 7.8% | 7.2% | 4.5% | 3.8% | 8.4% | 9.4% |
Days On Market
In 2024, the average days on market was 127, an increase of 10 days from 117 in 2023 (+8.5%). Due to the ongoing shortage of inventory of homes available for purchase, average DOM dropped dramatically from 2013 through 2022. It started creeping upwards in 2023. The Taos average has always been much higher than in many parts of the country—where homes typically sell in 30-45 days.
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
| 244 | 235 | 235 | 226 | 192 | 147 | 151 | 156 | 141 | 112 | 117 | 127 |
INVENTORY
| Jan 2025 | Jan 2024 | Sep 2008 | |
| Up to $200k | 5 | 3 | 190 |
| $200k – $300k | 10 | 9 | 109 |
| $300k – $400k | 25 | 19 | 69 |
| $400k – $500k | 23 | 19 | 39 |
| $500k – $650k | 40 | 27 | 35 |
| $650k – $800k | 27 | 17 | 27 |
| $800k – $1mil | 22 | 18 | 36 |
| Over $1mil | 33 | 37 | 13 |
| TOTAL | 185 | 149 | 518 |
UNIT SALES
| 2020 | 2021 | 2022 | 2023 | 2024 | |
| $0 – $200k | 62 | 44 | 26 | 18 | 12 |
| $200k – $300k | 70 | 49 | 47 | 24 | 21 |
| $300k – $400k | 83 | 64 | 72 | 49 | 43 |
| $400k – $500k | 45 | 55 | 62 | 58 | 38 |
| $500k – $650k | 42 | 53 | 66 | 45 | 49 |
| $650k – $800k | 15 | 34 | 43 | 32 | 36 |
| $800k – $1mil | 15 | 22 | 22 | 17 | 32 |
| Over $1mil | 6 | 29 | 33 | 21 | 17 |
| TOTAL | 338 | 350 | 371 | 264 | 248 |
Inventory
At the time this report was prepared, there were only 185 homes listed for sale, down 23 (-11%) from three months ago, but up 36 (+24%) from a year ago, when inventory was at a low point. Current inventory of 185 is only 36% as many homes as were available for purchase in September 2008, when there were 518 homes listed for sale! Taos inventory consists of a wide variety of size, price, style, location, and condition — everything from mobile homes to luxury homes, spread out over a large geographic area. With such a low supply of homes listed for sale, it is difficult to find more than a few homes to show a buyer that might meet most of his/her criteria.
There are no indications that inventory will increase substantially any time in the near future. Although there is some “spec” building going on, it’s nowhere near enough to satisfy the demand. Additionally, many current home owners are reluctant to list because they don’t want to give up ultra-low interest rates on their home loans. The inventory will remain inadequate relative to demand, for the foreseeable future. Therefore, in Taos prices should continue rising, but at a more gradual rate than during the boom years of 2021-2022.
Home Purchase Financing
| 2011 | 2020 | 2021 | 2022 | 2023 | 2024 | ||||||
| Cash | 65 | 43% | 103 | 31% | 139 | 40% | 135 | 35% | 127 | 48% | 96 (39%) |
| Conventional loan | 66 | 44% | 201 | 59% | 181 | 52% | 207 | 56% | 112 | 42% | 130 (52%) |
| FHA loan | 8 | 5% | 11 | 3% | 14 | 4% | 7 | 2% | 8 | 3% | 8 ( 3%) |
| VA loan | 1 | 1% | 13 | 4% | 11 | 3% | 13 | 4% | 6 | 2% | 11 ( 4%) |
| Seller financing | 8 | 5% | 4 | 1% | 2 | 1% | 8 | 2% | 9 | 3% | 2 ( 1%) |
| Other | 2 | 1% | 6 | 2% | 3 | 1% | 1 | 1% | 2 | 1% | 1 ( 1%) |
| Total | 150 | 100% | 338 | 100% | 350 | 100% | 371 | 100% | 264 | 100% | 248 (100%) |
Interest Rates
When the Federal Reserve started lowering its benchmark short-term interest rate in 2024, mortgage rates declined, too. The average 30-year fixed rate dropped from a high of about 7.2% to a low of 6.1%. However, since then mortgage rates have been climbing back up, as stronger than expected economic data and stubborn inflation have tempered market expectations of additional Fed cuts. After another brief dip in November-December, mortgage rates went back up over 7%. Currently, they are back just a little below 7%; they probably will remain in the 6.5%-7.5% range this year. Buyers and sellers probably realize by now that rates are not going to get back down to the super-low levels that occurred during 2009-2021; they will adjust to the new reality.
Here is a link to the Freddie Mac web site where you can see rates going back to the 1970’s: https://www.freddiemac.com/pmms
| Conventional 30-year fixed | 6.96% |
| Conventional 15-year fixed | 6.16% |
Note: Interest rates are impacted by occupancy, credit score, and down payment.
Foreclosure Sales
| 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
| 55 | 50 | 49 | 34 | 34 | 29 | 25 | 17 | 9 | 5 | 0 | 4 | 4 |
| 28% | 21% | 22% | 13% | 14% | 10% | 9% | 6% | 3% | 1% | 0% | 1% | 2% |
For all of 2024, there were just four foreclosure sales. These ranged in price from $132,000 – $236,000. In 2023 there were also just 4 foreclosure sales; in 2022 there were none. The number of foreclosures diminished steadily from a peak of 55 in 2012 during the aftermath of the Great Financial Crisis of 2008-2009. Currently, there are five bank-owned houses listed for sale, including one with a list price of $2.2 million; it has been on the market 229 days as of Jan. 23.
Please Note: These data do not include any condominiums developed or offered for sale by Taos Ski Valley Resort; those condos are not listed in the Taos MLS.
Condo sales are almost exactly the same as last year.
For the full year 2024, unit sales were down by 2 from 2023, with 56 sold this year vs. 58 last year (-3.4%). Dollar sales were down 12.6%, from $27.5 million to $24.0 million. The main reason for the much larger percentage decline in dollar volume is the much fewer number of closed sales this year vs. last year at Taos Ski Valley, where prices are significantly higher than in the rest of the Taos market.
As with Single-family Homes, the ongoing lack of inventory will keep 2025 sales from gaining much over 2024.
Median price for 2024 was $397,300 vs. $410,600 in 2023, a decrease of $13,300 (-12.6%). Average price was $429,100 vs. $474,100, a drop of $45,000 (-9.5%). BUT NOTE: in 2024, there were 8 sales at Taos Ski Valley (14% of total sales), whereas in 2023 there were 17 sales at TSV (29% of total sales). The large difference in the proportion of TSV sales has skewed the averages. Excluding sales at TSV, median and average prices were both up: The 2024 median was $383,500 vs. $362,000 in 2023, a gain of $21,500 (+5.9%). The average was $398,800 vs. $386,300, a gain of $12,500 (+3.2%). So it is safe to say that condo prices are not actually falling.
Price Discounting
2024 final sales price averaged 3.0% less than the last asking price when the condo went under contract, and 4.7% below original listed price. These discounts are less than those for single-family homes (which were 3.6% and 9.4%, respectively), reflecting an even tighter inventory for condos than for homes.
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
| 12.7% | 8.6% | 11.8% | 6.7% | 6.5% | 5.5% | 3.2% | 3.3% | 2.1% | 6.6% | 4.7% |
Days On Market – For the full year 2024, DOM averaged 107 vs. 109 in 2023, a decrease of 2 days (-1.8%).
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
| 559 | 237 | 324 | 259 | 195 | 125 | 178 | 111 | 152 | 122 | 109 | 107 |
Inventory
The number of condos listed for sale at the time of this report was 31, down from 36 three months ago, and exactly the same as at the beginning of the year in January 2024. Of the 31 condos currently listed for sale, 11 are at Taos Ski Valley, with only 20 in and near central Taos. Those 20 condos range in price from $195,000 for a 0-bedroom/1-bath studio to $610,100 for a 2BR/2BA with no garage.
In 2006, when condo development was at its peak, there were often approximately 200 condos on the market at any given time, with the majority in or near central Taos. There were 149 condos sold that year.
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
| 107 | 81 | 78 | 65 | 58 | 59 | 56 | 49 | 48 | 39 | 23 | 32 |
INVENTORY
| Current | Year Ago | Sept 2008 | |
| Up to $150k | 0 | 0 | 40 |
| $150k – $250k | 6 | 1 | 50 |
| $250k – $350k | 7 | 7 | 51 |
| $350k – $500k | 9 | 8 | 56 |
| Over $500k | 9 | 15 | 29 |
| TOTAL | 31 | 31 | 226 |
UNIT SALES
| 2020 | 2021 | 2022 | 2023 | 2024 | |
| Up to $150k | 10 | 8 | 1 | 0 | 0 |
| $150k – $250k | 21 | 16 | 13 | 8 | 9 |
| $250k – $350k | 18 | 30 | 33 | 14 | 13 |
| $350k – $500k | 22 | 22 | 31 | 15 | 18 |
| Over $500k | 3 | 6 | 14 | 21 | 16 |
| TOTAL | 74 | 82 | 92 | 58 | 56 |
| How Financed | 2016 | 2020 | 2021 | 2022 | 2023 | 2024 | ||||||
| Cash | 34 | 51% | 43 | 58% | 36 | 44% | 45 | 49% | 38 | 66% | 32 | 57% |
| Conventional loan | 32 | 48% | 30 | 41% | 45 | 55% | 47 | 51% | 20 | 34% | 24 | 43% |
| Seller financing | 1 | 1% | 1 | 1% | 0 | 0% | 0 | 0% | 0 | 0% | 0 | 0% |
| Other | 0 | 0% | 0 | 0% | 1 | 1% | 0 | 0% | 0 | 0% | 0 | 0% |
| Total | 67 | 100% | 74 | 100% | 82 | 100% | 92 | 100% | 58 | 100% | 56 | 100% |
Foreclosure Sales
There were no foreclosure sales in 2024. There also were none in 2023, 2022 and 2021.
Multi-family sales increased in 2024, but from a very low point.
For the entire year to December 31, there were a total of 8 sales vs. 3 in 2023. In 2022, there were only 6; in 2021 there were 5. In peak year 2005, when the overall real estate market was very strong before the Great Financial Crisis, there were only 8 sales. Multi-family has always been a very small segment of the Taos real estate market.
Given the current environment of much higher interest rates, 2025 sales should be about the same as or slightly lower than 2024. Higher interest rates mean that investors normally require higher “capitalization rates”, which reduce the value of the income stream of a property. (Investors divide a property’s Net Operating Income by their cap rate to calculate the price they can pay for the property to achieve the desired rate of return.) Although rents have been trending higher for years—due to an acute lack of inventory of long-term rental properties— rent increases appear to be moderating.
Currently, there are 8 multi-family properties listed for sale; one has a sale pending.
The land market continues to languish.
For the full year 2024, the number of sales was 186 compared to 210 in 2023, a decrease of 24 tracts (-11.4%). Dollar sales were down 9.0%, at $22.8 million vs. $25.1 million, a decline of $2.3 million.
The primary constraints on land sales are very high building costs and the long lead time to start and complete construction of a home. Good builders are quoting $400 per square foot or more for the hard dollars of construction; this doesn’t include the land purchase, possible well drilling, septic system installation, and landscaping. It generally costs more to build a new home than to buy an existing home. However, for some people this is not a deterrent: the good builders are booked up for at least two years!
Land sales were relatively strong in 2021 after years of weakness following the Great Financial Crisis of 2007-2008. Unit sales in 2021 were up 69% over 2020–although the number of sales was still 27% fewer than peak year 2005. In 2021, during the Covid pandemic influx, some buyers who were frustrated in their search for an existing home to buy (due to the low inventory and intense competition with other buyers) decided to buy land and build.
Then In 2022, the sales pace slowed as buyers realized how long it would take and what it would cost to get a home built. Total closed sales for 2022 were up just 6 units over 2021 (258 vs. 252). In 2023, land sales decreased, along with all the other segments of the real estate market. In the full year 2023, 210 tracts sold, a decrease of 51 units (-20%) from 2022. The down trend continued in 2024 with just 186 sales. We don’t expect much of an increase in 2025. Building costs certainly haven’t come down, and inflation seems to be sticky at current levels.
Back in peak year 2005, in the boom leading up to the GFC, there were 339 land sales, with a total dollar value of $46 million. Whereas sales of single-family homes had got back to the peak level of 2005 by 2021-2022, land sales are still way below the levels of 2004-2006.
Median price for 2024 was $75,000, up $4,000 (+5.6%) from 2023. In the table below, you can see that the median is fairly stable. Average (mean) price for the year 2024 was up $3,200 (2.7%), from $119,400 to $122,600. *For best results, view tables on a desktop screen
| Price | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
| Median | $52,300 | $64,500 | $62,300 | $67,200 | $ 70,000 | $ 75,000 | $ 75,600 | $ 72,000 | $ 75,000 |
| Average | $73,100 | $89,800 | $91,900 | $87,500 | $134,600 | $109,000 | $122,500 | $119,400 | $122,600 |
Current inventory of 343 tracts listed for sale is down 10 from a year ago. At 2024’s sales pace, this represents a 1.8-year supply.
INVENTORY
| Current Month | Same Month last year | |
| Up to $50k | 41 | 39 |
| $50k – $100k | 73 | 116 |
| $100k – $150k | 55 | 51 |
| $150k – $200k | 42 | 49 |
| $200k – $250k | 30 | 19 |
| $250k – $300k | 17 | 16 |
| Over $300k | 85 | 63 |
| TOTAL | 343 | 353 |
UNIT SALES
| 2017 | 2020 | 2021 | 2022 | 2023 | 2024 |
| 46 | 53 | 86 | 71 | 53 | 44 |
| 34 | 57 | 84 | 97 | 86 | 73 |
| 16 | 17 | 26 | 31 | 24 | 22 |
| 15 | 16 | 23 | 18 | 14 | 23 |
| 3 | 4 | 14 | 12 | 8 | 7 |
| 2 | 0 | 7 | 6 | 12 | 4 |
| 2 | 4 | 12 | 23 | 13 | 13 |
| 118 | 147 | 252 | 258 | 210 | 186 |
Price Discounting
For the full year 2024, actual sales price averaged 8.0% less than the last listing price when the land when under contract; the discount from original listing price was 10.9%. In 2023, the discounts were 8.8% and 12.9%, respectively. Whereas in the market for homes and condos there is much more demand than supply, in the land market the reverse is true. Land buyers have a lot of listings to choose from. The Land market is more of a buyer’s market.
Days On Market
The average days on the market for the year 2024 was 534 vs. 421 in 2023. This year’s average was somewhat skewed by six sales in the Servilleta Subdivision way out in Tres Piedras: those six sales had an average DOM of 7,430 days (over 20 years each)! As the chart below illustrates, DOM for land has been up and down over the years.
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
| 465 | 390 | 605 | 464 | 472 | 388 | 332 | 471 | 351 | 437 | 421 | 534 |
How Land Purchases Were Financed
| 2022 | 2022 | 2023 | 2023 | 2024 | ||
| # of sales | % of total | # of sales | % of total | # of sales | % of total | |
| Cash | 188 | 75% | 168 | 80% | 140 | 75% |
| Conventional loan | 35 | 14% | 24 | 12% | 27 | 15% |
| Seller financing | 28 | 11% | 18 | 8% | 16 | 9% |
| Other | 1 | 0% | 0 | 0% | 3 | 1% |
| Total | 252 | 100% | 210 | 100% | 186 | 100% |
The commercial market is up this year, but it is still weak.
For the full year 2024, there were eight commercial sales compared to six in 2023. After a boomlet in 2022—when there were 18 closed sales— the commercial market has come down to a more typical level for Taos. The chart below shows that 6-8 commercial transactions per year has been the norm in our small market.
Currently, there are 25 active commercial listings; of these, only one has a pending sale.
The Taos retail sector has been severely impacted by the road improvement project for the main commercial thoroughfare through town. This project has been dragging on for years, snarling traffic and discouraging shoppers. New higher parking fees in the Central Business District have added to merchants’ woes. These negatives, coupled with higher interest rates and nagging worries about a possible recession, are no doubt dampening enthusiasm for commercial investment.