New Mexico

It’s back to old school tactics in New Mexico real estate. Markets throughout most of the state have slowed even as the economy grows. The national real estate recession is slowly eating away at New Mexico.

That isn’t to say that New Mexico’s housing markets will go bust any time soon. The growing spirit of New Mexico is too strong for a sudden melt down. It’s also supported by new businesses moving to the state prompted in part by tax incentives, a less expensive labor market and job growth.

Listings of homes for sale in Albuquerque have increased by 50% slowing the market. Home owners and new home builders are offering incentives to sell their properties. New real estate agents are having to learn how to market properties, a necessity in a business that has changed dramatically with the slower market.

Albuquerque hasn’t gone from boom to bust like other markets in more populated states. But the housing market has progressively slowed from its peak. New Mexico’s largest urban center was Housing Predictor’s top rated market for appreciation in 2007, and it proudly claimed the prize.

City	Forecast
Albuquerque	3.5%
Las Cruces	− 2.4%
Santa Fe	− 6.1%

But the market is making a transition. Home prices are beginning to slide for the first time in years as the mortgage melt down effects the area. Loans are becoming tougher to get, and some perspective home buyers are failing to qualify for financing. It’s taking longer for homes to sell in Albuquerque. The boom is over.

Home auctions are becoming popular mainly as a way for new home builders and investors to sell properties. The first home auction to be held in Albuquerque by one builder was held a while back. The market will see slower sales in 2008, according to the Housing Predictor forecast, and rack up just mild appreciation compared to last year at 3.5% as the market winds down from its boom.

In Las Cruces the market has experienced a slight slow down. Home sales are off last year's pace, and prices are beginning to edge downward, and are forecast to continue on their southernly trend through 2008, netting deflation of 2.4% on the average home for the year.

Las Cruces has seen its population swell since 2000 and home prices have doubled since then. Now the market place, bolstered by massive fraud in lending and the resulting national mortgage melt down is beginning to take some of that appreciation back.

In the mountains of Red Rock country in Santa Fe the market has seen major changes. Home sales are headed towards being half of what they were in the real estate boom, and prices are sliding.

Santa Fe has turned into a favorite market for second home and vacation buyers. Many have bought and sold properties during the markets hey-day. Homes are taking much longer to sell these days. Prices are falling and are forecast to deflate 6.1% in 2008 as the market slows.