New Mexico Housing Market Analysis - July 2024
The housing market in New Mexico has shown a variety of trends as of July 2024. The data indicates both positive and negative shifts in various key metrics, reflecting the dynamic nature of the real estate landscape in the state.
Price Metrics
The median sales price for homes in New Mexico has risen to $372,700, marking a 7.6% increase year-over-year (YoY). This upward trend in sales prices suggests a strong demand for housing, despite other market fluctuations. Similarly, the median list price has also seen an increase, reaching $413,100, which is a 3.8% rise YoY. This indicates that sellers are optimistic about the market conditions and are pricing their homes accordingly.
When examining the price per square foot, the median price stands at $215, reflecting a 3.6% increase YoY. The median list price per square foot has experienced a more significant rise, reaching $233, which is an 8.1% increase YoY. These figures suggest that buyers are willing to pay more per unit area, possibly due to the limited availability of larger homes or the increasing value of smaller, more efficient living spaces.
Sales and Inventory
The number of homes sold in July 2024 was 881, which represents a 3.8% decrease YoY. This decline in sales volume could be attributed to various factors, including higher prices and limited affordability for some buyers. Pending sales have also decreased by 2.5% YoY, totaling 1,102. This slight drop in pending sales may indicate a cooling off in buyer activity or a more cautious approach to purchasing decisions.
On the other hand, new listings have increased by 5.8% YoY, with 1,289 new homes entering the market. This rise in new listings suggests that more homeowners are looking to capitalize on the higher prices and favorable market conditions. Inventory levels have seen a significant increase of 23.1% YoY, reaching 3,604 homes. This boost in inventory is a positive sign for buyers, as it provides more options and potentially reduces the competitive pressure in the market.
The months of supply, which measures the time it would take to sell all current inventory at the current sales pace, has surged by 90.0% YoY to 4.10 months. This substantial increase indicates a shift towards a more balanced market, where supply is catching up with demand.
Market Dynamics
The median days on market for homes in New Mexico is now 41 days, reflecting a 12.0% increase YoY. This longer time on the market could be a result of the higher prices, causing buyers to take more time to make purchasing decisions. The average sale to list ratio has decreased by 3.6% YoY, now standing at 96.5%. This decline suggests that homes are selling for slightly less than their listed prices, which could be a sign of increased negotiation power for buyers.
The percentage of homes sold above list price has also decreased by 1.6% YoY, now at 6.1%. This reduction indicates that fewer homes are experiencing bidding wars or selling for more than their asking prices. Additionally, the percentage of price drops has increased by 4.3% YoY, reaching 26.7%. This rise in price drops suggests that sellers may be adjusting their expectations and reducing prices to attract buyers.
The percentage of homes going off the market in two weeks has decreased by 9.5% YoY, now at 30.5%. This decline indicates that homes are taking longer to sell, which could be a result of the higher prices and increased inventory levels.
Conclusion
In summary, the New Mexico housing market in July 2024 is characterized by rising prices and increased inventory levels. While the higher prices have led to a decrease in the number of homes sold and pending sales, the increase in new listings and inventory suggests a more balanced market. Buyers may find more options and potentially better negotiation opportunities, while sellers may need to adjust their expectations and pricing strategies to attract buyers. Overall, the market dynamics indicate a shift towards a more stable and sustainable real estate environment in New Mexico.
