The Year 2023 Through October

Taos Real Estate Market Report

January – October 2023 (10 months)

The market has definitely slowed from the red-hot conditions of 2020-2022.

Sales in 2023 have been tracking below 2022’s pace all year, with the number of closed sales and the dollar volume down in all categories of property. For the total market (all categories), the number of sales is down 27%; dollar sales are down 34%. Single-Family Homes unit sales are down 28%, and dollar sales are down 32%. Condo unit sales are down 42%, with dollar sales declining 33%. Land sales are down 18%, with dollar volume dropping 27%. There have been only 3 Multi-family sales so far vs 6 last year. Commercial sales are down from 14 closed sales to 6.

The slowdown is attributable to several factors: First, the buying “frenzy” that characterized the market during the Covid pandemic of mid-2020 through 2022 was bound to subside. Second, the inventory of homes and condos listed for sale is at an all-time low. Third, as fear of the pandemic has diminished, the desire to relocate from urban areas to work from home in more rural towns has slowed some. Finally, the sharp spike in interest rates, anxiety about a possible recession and the fraught geopolitical situation are dampening buyers’ enthusiasm.

However, we believe that the long-term trend in Taos remains healthy. There will likely continue to be more demand than supply for homes and condos; this should keep prices somewhat buoyant. Taos will continue to draw people for whom the local climate, natural beauty, lifestyle and culture are attractive.

Click each title below to view the data for that property type.

For the year through October 31, unit sales are 223 this year vs. 308 last year, a decrease of 85 sales (-27.6%). This is a little improvement over the early part of the year, when sales were running about 30%-35% below last year. However, the trend of sales below last year will continue, and the year will end with 25%-30% fewer sales than last year.

Dollar sales for the year to date are down 32.3%, from $173.2 million in 2022 to $117.2 million in 2023. The market price level rose dramatically from mid- 2020 through 2022, when there was something of a buyer stampede, and demand way outstripped supply. There were many cases of bidding wars, with homes often selling well above asking price. Prices rose 20% – 25% per year. In addition to the overall price level rising, there was an increase in sales of higher-priced homes. In 2022, 34 homes sold at $1 million or more. That was up from 29 in 2021, and from 7 in 2020; so far this year, there have been 15.

Median and Average Prices

For the year through October, the median price (midpoint in the range of prices from low to high) is almost exactly the same as last year: $470,200 this year vs. $470,000 in 2022. The average (mean) is $525,700 vs. $562,300 last year, a decrease of $36,600 (-6.5%). So in Taos, prices are not falling dramatically; they have just stopped rising. Here is how median and average prices have changed since 2016:

Price2016201720182019202020212022 2023 YTD
Median and average price trends since 2016

Price Discounting

For the year to October 31, actual sales price has averaged 4.3% below the final asking price when the home went under contract; the discount from original asking price is 8.4%.  Some sellers have been listing homes as if the market were as hot as it was during the big surge of 2020-2022. That hasn’t been working very well, and we are seeing a lot of asking price reductions. In 2021-2022, sellers got full asking price much of the time.

201320142015201620172018201920202021 2022 2023 YTD
18.4%16.9%13.9%13.3%9.4%10.3%7.8%7.2%4.5% 3.8%8.4%
Discounts from original asking price since 2013
Days On Market

For year-to-date 2023 , the average days on market is 117, exactly the same as in 2022 for the same time period. Due to the very limited inventory of homes available for purchase, average DOM has dropped dramatically from what used to be the norm in Taos: up until 2016, it took about eight months to sell a home. Today’s average is much lower, but still high compared to many parts of the country, where homes typically sell in 30-45 days. However, good homes in Taos in preferred neighborhoods are selling much faster than the average.

2006201320142015201620172018201920202021 2022 2023 YTD
DOM in 2006, and for ten years prior to this year, and this year so far
Nov 2023Nov 2022Sep 2008
Up to $200k 714190
$200k – $300k 916109
$300k – $400k183569
$400k – $500k213439
$500k – $650k263435
$650k – $800k252727
$800k – $1mil172436
Over $1mil332913
Inventory by price segment
2019202020212022 2023 YTD
Up to $200k58614426 16
$200k – $300k64704947 21
$300k – $400k74836472 45
$400k – $500k27455562 49
$500k – $650k24425366 37
$650k – $800k16153443 26
$800k – $1mil4152122 14
Over $1mil462933 15
TOTAL271337349371 223
Unit sales by price segment

At the time this report was prepared, there were 156 homes listed for sale, down 31 (-17%) from four months ago when there were 187 listings, and down 57 (-27%) from a year ago, when there were 213 homes for sale. The low point in 2022 was 194 in April; the high point was 254 in August. In September 2008, there were 518 homes listed for sale. Taos inventory consists of a wide variety of size, price, style, location, and condition — everything from manufactured to luxury homes. With only 156 listings on the market (which includes some that are under contract), it is difficult to find more than a few homes to show a buyer that might meet most of his/her criteria.

2013201420152016201720182019202020212022 2023 YTD
Average inventory 2013 – 2023

There are no indications that inventory will increase substantially any time in the near future. Although there is a fair amount of “spec” building going on, it’s nowhere near enough; 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. There fore, the inventory will remain inadequate relative to demand. This should keep prices from falling significantly.

Home Purchase Financing
201120202021 2022 2023 YTD
Cash65 43%103 31%139 40% 132 36% 104 47%
Conventional loan66 44%200 59%180 52% 208 56% 97 43%
FHA loan8 5%11 3%14 4% 7 2% 8 4%
VA loan1 1%13 4%11 3% 13 4% 5 2%
Seller financing8 5%4 1%2 1% 8 2% 9 4%
Other2 1%6 2%3 1% 1 0% 0 0%
    Total150100%337 100%349 100% 369100% 223 100%
How Home Purchases Were Financed
Interest Rates

As soon as the Federal Reserve started its anti-inflation program of raising short-term interest rates last year, the rates on home loans also increased dramatically. The 30-year fixed rate loan jumped from around 3% in late 2021 to around 7% in November 2022. The 30-year is averaging 7.44% at the time of this report, down from a high of 7.79% in the week ending Oct. 26. There has been a lot of volatility in the market for US Treasury notes and bonds, which directly affects mortgage rates. Recent data on US inflation suggests that the Federal Reserve may not increase rates any more, and it may start lowering rates in 2024. Although mortgage rates are probably never going to get back to the low levels of 2020-2021, if they come down to 6%-6.5%, that would bring some buyers back into the market.

Conventional 30-year fixed 7.44% 
Conventional 15-year fixed6.76%
Average rates as of Nov. 17, 2023 from Freddie Mac
Note: Interest rates are impacted by occupancy, credit score, and down payment.
Foreclosure Sales
201120122013201420152016201720182019202020212022 2023 YTD
445550493434292517950 3
29%28%21%22%13%14%10%9%6%3%1%0% 1%
Foreclosure Sales: % of total sales of Single-Family homes 2011 – 2023

There has been 3 foreclosure sales through the first ten months of 2023.  For the full year 2022, there were none. The number of foreclosures has diminished steadily over the past several years. Currently, there are just three bank-owned houses listed for sale; two have pending sales.

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 through the first ten months of the year are down sharply: only 45 closed sales in 2023 vs. 77 in 2022 (-42%). Dollar sales are down 33%, from $30.5 million to $20.5 million.  The inventory of condos listed for sale is very limited, so this has been a constraint on the number of sales. As is the case with homes, there are no signs that inventory will increase significantly any time soon; therefore, prices should continue remain fairly firm.

Median price for the year to October 31 is $409,100 vs. $349,000 for the same time period in 2022, an increase of $60,100 (+17%).  Average price is also up, at $455,300 vs. $396,200, a gain of $59,100 (+15%).  With such a disparity in the number of sales this year vs. last year, it is difficult to analyze the reasons for the large gains in median and average price. The composition of sales mix seems to be roughly the same, i.e., there is not a big change this year to sales of much larger–therefore higher-priced–units. The gains appear to be simply due to supply and demand.

Price Discounting

Through October, final sales price has averaged 3.0% less than the last asking price when the condo went under contract, and 7.0% below original listed price. These discounts are less than those for single-family homes; again, this reflects an even tighter tighter inventory for condos.

20142015201620172018201920202021 2022 2023 YTD
12.7%8.6%11.8%6.7%6.5%5.5%3.2%3.3% 2.1% 7.0%
Discounts from original asking price 2014 – 2023 YTD

Days On Market – In the first ten months of the year, DOM averaged 115 in 2023 vs. 127 in 2022, a decrease of 12 days (-9%).


The number of condos listed for sale at the time of this report was only 24, a decrease of 4 from four months ago, and a slight increase of 1 from 23 at this time a year ago. Of the 24 units currently listed for sale, 7 are located at Taos Ski Valley, 16 are in Taos and nearby. The condos in Taos range in price from a studio unit priced at $175,000 to a 2BR/2BA unit at $630,000.

In 2006, when condo development was at its peak, there were often around 200 condos on the market at any given time, with the majority in or near central Taos; there were 149 condo sales that year.

20132014201520162017201820192020202120222023 YTD
1078178655859564948 39 23
Steady average inventory decrease 2013 – 2023
CurrentYear AgoSept 2008
Up to $150k 0 040
$150k – $250k 1 150
$250k – $350k8351
$350k – $500k 81256
Over $500k 7 729
Inventory by price segment
20202021 2022 2023 YTD
Up to $150k108 1 0
$150k – $250k2116 13 6
$250k – $350k1830 33 11
$350k – $500k2222 31 12
Over $500k36 14 16
     TOTAL7482 92 45
Unit sales by price segment
201620202021 2022 2023 YTD
Cash34 51%43 58%36 44% 45 49% 2862%
Conventional loan32 48%30 41%45 55% 47 51% 1738%
Seller financing1 1%1 1%0 0% 0 0% 0 0%
Other0 0%0 0%1 1% 0 0% 0 0%
    Total67100%74 100%82100% 92100% 45100%
How Condo Purchases Were Financed

Foreclosure Sales

There have been no foreclosure sales so far in 2023, the same as in 2022 and 2021.

Through October 2023, there have been 3 multi-family sales, a decrease of 3 compared to the same time period in 2022.

For the full year 2022, there were only 6 multi-family sales; in 2021 there were 5. Multi-family is and has always been a very small segment of the Taos real estate market. In peak year 2005, there were only 8 sales.

Sales this year include the old Sun God Lodge, a 56-unit motel on the main commercial road through the south side of Taos. It sold for $1,265,000. It is supposed to be converted to affordable rental housing.

Rents have been trending higher for years, so multi-family income properties could yield fairly attractive returns on investment. However, with interest rates having increased, investor buyers will pay less to achieve a desired rate of return (“capitalization rate“).

Currently, there are 17 multi-family listings, including three apartment buildings (6-, 9-, and 20-unit properties). Those three apartments are under contract, along with a duplex and a triplex, for a total of 5 pending sales.

2023 first half Land unit sales were 13% fewer than in 2022.

So far this year, 108 tracts have sold compared to 124 for the same time frame in 2022. That’s a decrease of 12.9%. Dollar sales are down 23.6%, from $16.2 million to $12.4 million. Median and average prices are down 10.2% and 12.3%, respectively.

Land sales aren’t down as much as residential sales this year; however, land sales hadn’t increased as much as homes and condos did during the 2020-2022 market surge, so the pullback in this year’s cooler market isn’t as pronounced. The primary constraint on land is very high building costs, and the long lead time to start and complete construction of a home. It costs much more to build than to buy an existing home, and good builders are booked up for at least two years.

Land sales really took off in 2021 after being in the doldrums ever since the recession that followed 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. Some home buyers who were frustrated in their search for an existing home due to the low inventory and intense competition decided to buy land and build. 

Then In 2022, the sales pace slowed as buyers realized how long it would take to get a home built. Total closed sales for the year were up just 6 units over 2021 (258 vs. 252). Dollar sales were up 15%. 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; 2022’s unit sales were 24% fewer than that peak. Unlike the market single-family homes, the land market is nowhere near back to where it peaked before the GFC.

Median price for the first half this year was $76,800 vs. $85,500 in 2022 for the same time frame, a decrease of $8,700 (-10.2%). Average (mean) price year-to-date is down $16,100 (-12.3%), from $131,000 last year to $114,900 in 2023. Whereas in the market for homes and condos there is much more demand than supply, in the land market the reverse is true.

Current inventory of 380 tracts listed for sale is down 1 from three months ago, but down 122 (-24%) from a year ago.

Current MonthSame Month last year
Up to $50k 70114
$50k – $100k 119168
$100k – $150k 48 58
$150k – $200k 49 56
$200k – $250k 23 34
$250k – $300k 17 10
Over $300k 54 62
Comparative inventory by price segment
201720202021 2022 2023 YTD
465386 68 24
345784 94 50
161726 31 14
151623 18 6
3414 12 4
207 6 5
2412 23 5
118147252 252 108
Yearly unit sales by price segment

Price Discounting

For the first half this year, actual sales price averaged 9.6% below the last asking price when the home went under contract; the discount from original asking price was 14.1%. Compared to single-family homes and condos, buyers of land are able to negotiate substantial discounts in many cases.

Days On Market

The average days on the market so far this year is 365, down from the average of the previous ten years of 447. But as you can see, DOM for land has been up and down over the years.  

20132014201520162017201820192020 2021 2022 2023 YTD
465390605464472388332471 351 437 365
Average inventory 2013 – 2022
How Land Purchases Were Financed
2022 2023 YTD
Cash 188 75% 90 83%
Conventional loan 35 14% 10 9
Seller financing 28 11% 8 7%
Other 1 0% 0 0%
    Total 252100% 108100%
Land Purchase Financing

The commercial market has cooled after a surge in 2022.

There have been only two sales of commercial properties through the first half of 2023, with total dollar sales of $1.7 million. Last year at this point in time, there had been 11 sales with total dollar volume of $10.9 million. In the full year 2022, there were 18 sales with a total dollar volume of $14.5 million. Six of these sales were $1 million or more. Higher interest rates no doubt are affecting the feasibility of some commercial opportunities. Currently, there are 28 active commercial listings, with just one pending sale.

With the growing number of people moving to Taos (for either full-time or extended stay living), the demand for commercial services — and therefore commercial real estate — should continue to increase over time; however, given higher interest rates and the possibility of a recession this year or in 2024, 2023 may be a quiet year in this sector of the market.

2011201220132014201520162017201820192020 20212022 2023 YTD
2793177514 12 8618 2
Commercial Sales 2011 – 2022
Taos Real Estate Market Report