By Evelyn Bruder on Jan 8th, 2014 Topics: Wednesday Morning Coffee, Seller, Real Estate Market, Real Estate Info, Buyers, 1st Time Home Buyers
It was a record setting year in the Las Cruces real estate market as prices continue to rise to new highs as well as a significant reduction in inventory. What does this all mean? It means that the market recovery we saw in 2012 continued strong into 2013 and is projected to continue into 2014. Here are some of the highlights for 2013!
Record Breaking Sales
In 2013, Las Cruces experienced an increase of 5.7% in number of homes sold. In total, 1400 Single Family Homes sold in 2013 which represents the greatest number of homes sold since 2008. This continues a trend that started last year. In 2012 we saw the first increase in sales (22.5% over 2011) with the first increase in the Median Price of sold homes since 2006. We considered this the beginning of the Las Cruces Real Estate Market recovery.
A More Balanced Real Estate Market
For the last 5 years, Las Cruces has had a steady inventory of about 1200 (+/- 10%) homes for sale. In 2013, that total has dropped to 1031 listings. This is the first time in the last five years we have seen a significant reduction in inventory. This consumption of inventory/supply has been the missing step in attaining a more balanced real estate market.
December’s home sales have given us a great start toward an even better 2014. December shows the most homes sold in any December since 2006! Prices are also up 8% over the previous two years. This means we’ve seen our first increase after a steady decline in median home prices over the last 8 years.
This has resulted in an overall Absorption Rate of 8.8 months. We are getting close to the 6 month level that represents a balanced/ normal Market.
So how does this benefit current sellers and potential buyers? It means is time to come down off the fence! Let’s see why.
- The continued increase in sales means there are more and more buyers actually buying homes.
- The increase in the median price of homes sold shows a turnaround is taking place, and even those sellers who are “underwater” or are worried that their home has lost value do not have to be quite as anxious. Now is a good time to get a current analysis of the value of your home.
- Because inventory is decreased the odds of your home selling has increased.
- Interest rates are still very low increasing affordability of the available homes.
- Things are not balanced yet, so even with the decreased inventory bargains are available. The Market needs more buyers to consume more homes. Sellers need to sell.
- Now is an ideal time for buyers to act before the market turns around.
If you liked this information and found it helpful share it with your friends!
Our comprehensive end of the year Market will be available on January 20th if you would like a copy e-mailed to you just click the image below.
- Additional Resources
- Breaking News: Both Buyers and Sellers See Recovery in Las Cruces Real Estate Market
Breaking News: Both Buyers and Sellers See Recovery in Las Cruces Real Estate Market
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