ZIP 87507 — southwest Santa Fe — is one of the more affordable corners of the city, and the closed-sale numbers back that up: 374 homes sold here over the last 12 months at a median of $517,500 ($319/sqft), with sellers netting 98.8% of list in a median 26 days. Nearly 7 in 10 of those sales closed between $400K and $700K. This is entry-level Santa Fe, priced like it.
So here's the number that doesn't fit. Among the 267 active listings right now, 179 are actual homes with a median list price of $565,000. But the 28 vacant land parcels currently listed in 87507 carry a median list price of $714,250 — nearly $150,000 more than a finished house with a roof, plumbing, and four walls. Buy dirt in this ZIP code today and, on paper, you'll pay more than the person buying next door's move-in-ready home.
It's a supply story, not a contradiction. With only 15.4% of inventory under contract and true absorption at 3.1 months, buildable lots are getting priced for scarcity while the existing home stock (median year built 2005) still has to compete on condition. Land sellers are betting on what a builder can do with the parcel; home sellers are pricing against comps that already exist.
For buyers, the “cheap ZIP code” label needs a footnote: cheap for a home, not for a chance to build one. For sellers holding land, this is a good month to test the market — scarcity is doing the pricing for you. Run the numbers by category before trusting any single average in this ZIP code.
Full inventory tables, price bands, and methodology are in the complete 87507 market report. Browse current listings at Santa Fe homes for sale, get a data-grounded estimate at Santa Fe home values, or compare every Santa Fe-area ZIP and neighborhood in our full library of market reports, updated monthly straight from MLS data.
— Matthew Scarborough, Scarborough Realty Group, Keller Williams Santa Fe
Comments(2)