Home Value Trends in New Mexico
If you haven’t been living under a rock for the past 12 months, you’ve probably heard all the doom and gloom predictions about the housing bubble bursting, median home value crashing, and housing market crashing. Guess what? They have exaggerated a bit. Looking at the real estate market nationally, it’s very true that it’s definitely past the boom of the past few years, however most areas are still doing well.
When you’re considering buying or selling a home, the national median home value won’t help you much (but if you’re curious, it’s around $221,900). Real estate is an investment, so it’s important to move somewhere where your home’s value is likely to appreciate. The best way to see where home prices are going in a given area is to look at past home values and sales trends, the economy, population, job opportunities, unemployment rates, and attractiveness. from that area.
New Mexico (capital city: Santa Fe) is an area that has seen quite a bit of appreciation in some areas. With a large and diverse population of about 1,954,599, New Mexico uses its diverse economy to maintain job growth and opportunity, which is a major factor that can affect home prices in an area. New Mexico relies on cattle, dairy products, hay, nursery stock, and chili peppers as its main agricultural contributions. On the industrial side, New Mexico’s major sectors include electrical equipment, oil and coal production, food processing, printing and publishing, stone, glass, and clay products, and, of course, tourism.
With such a rich and diverse history and culture, it’s no wonder New Mexico has a large tourism industry. The strong job base and attractions for out-of-state visitors is something that has kept much of the New Mexico real estate market and home prices stable. With several major cities (Santa Fe, Albuquerque, and Las Cruces), New Mexico has plenty of opportunities for nightlife lovers, not to mention Santa Fe is the third largest art market in the United States! But it’s the ancient cultures, world-famous cuisines, and diverse and varied landscapes that really draw people to New Mexico.
With more than 30 state parks and varied landscapes (snowy mountains, green forests, blue lakes, and white deserts), New Mexico has plenty of outdoor adventures, including camping, hiking, water sports, winter sports, cave exploring, etc. . Some important historical and educational sites include the Billy the Kid Museum, Roswell and the International UFO Museum, the Space Museum, and Chaco Canyon National Historical Park, the main urban commercial and cultural center of the ancient Puebloan culture. With so many different climates in one state, it’s no wonder New Mexico has so much to offer: not only do people visit, but the places make them want to move, providing the state with a steady stream of new residents and therefore therefore, a stable home value. prices.
New Mexico’s unemployment rate hit a record low of 3.5% in February and is now around 3.7%. This low unemployment rate means that job opportunities are plentiful. The median household income in New Mexico in 2005 was approximately $39,936, much lower than the national value. On the other hand, the median home value in the Santa Fe area is around $350,000, while the Albuquerque area was around $285,000 in 2006. This means that while home value medians appear to be holding fairly high in New Mexico, family income is low enough to make it more difficult to afford a home in the state.
Most real estate agents agree that since New Mexico did not experience as big of a boom as other areas of the nation, they did not experience the bursting of the real estate bubble as much. The uniqueness of the area keeps median home values high, and many higher priced homes were sold in the first quarter of 2007, such that median home value at the beginning of 2007 was nearly $520,000. Housing below that price has been moving quickly.
In Albuquerque, the median home value for single-family homes is approximately $199,000, while the median home value for condominiums is approximately $145,000. Housing is affordable and with a large inventory, now is a great time to buy In the area. Agents in the area expect activity to pick up in the summer months, even though interest rates are rising.
In general, while New Mexico has some pretty expensive areas (Santa Fe), affordable housing can still be found, and it’s not in high enough demand that sellers can set whatever price they want. Average home values continue to appreciate at a good pace overall, and as more homes and jobs become available, New Mexico is likely to see a decent increase in not only home values, but new residents as well. during the next few months.