New Mexico Housing Market: November 2024 Analysis
The New Mexico housing market in November 2024 presents a complex landscape characterized by declining prices and increasing sales activity. The Median Sales Price has decreased to $351,800, marking a significant year-over-year decline of 8.4%. This downward trend in sales prices is mirrored by the Median List Price, which stands at $360,400, reflecting a 3.0% decrease from the previous year.
Despite the drop in prices, the market shows signs of resilience with an increase in sales activity. Homes Sold in November reached 749, representing a 3.3% increase compared to the same period last year. Pending Sales also rose by 5.5%, totaling 819. This uptick in sales activity is further supported by a 3.3% increase in New Listings, which amounted to 777.
Inventory levels have surged, with a 21.3% increase year-over-year, bringing the total to 3,360 homes. This rise in inventory has contributed to a substantial 70.0% increase in the Months of Supply, now at 4.5 months. The extended supply indicates a shift towards a more balanced market, providing buyers with more options and potentially more negotiating power.
The median Price Per Square Foot has seen a slight decline of 1.0%, now at $202, while the Median List Price per square foot has increased by 5.6% to $212. This divergence suggests that while sellers are adjusting their expectations, there remains a willingness to list properties at higher price points per square foot.
Market dynamics are further illustrated by the average sale to list ratio, which has decreased to 95.4%, down 3.0% from last year. The percentage of Homes Sold above list price has also declined to 3.5%, a 2.9% decrease year-over-year. These figures indicate a cooling in competitive bidding scenarios, likely influenced by the increased inventory and longer market times.
The Median Days on Market have increased by 9.0%, now averaging 50 days. This extended timeframe reflects the broader trend of a slowing market, where properties are taking longer to sell. Additionally, the percentage of homes going off the market within two weeks has decreased by 3.6%, now at 23.9%.
Price reductions have become more common, with 18.7% of listings experiencing Price Drops, although this represents a slight decrease of 2.8% from the previous year. This trend suggests that sellers are becoming more realistic in their pricing strategies to attract buyers in a more competitive environment.
Overall, the New Mexico housing market in November 2024 is characterized by declining prices and increased sales activity, set against a backdrop of rising inventory and extended market times. These factors collectively point towards a market that is gradually shifting from a seller's market to a more balanced state, offering opportunities for both buyers and sellers to navigate the evolving landscape.
