Las Cruces home sales continue to slow as spring selling season begins
Beginning with the subprime mortgage crash of 2007-2008 and continuing through 2012, the median price of Las Cruces single-family homes declined by just over $800 per month for 48 straight months. The typical homeowner lost more than $40,000 in value over the period. While there are currently no indicators projecting a similar loss of value going forward, local home sale data reveal that both values and the pace of sales appear to be on the decline.
One of those indicators is the median price of recent home sales. Take for example the 67 new and existing single-family home sales that closed during the first two weeks of this month. According to an April 24 report from the Las Cruces Association of Realtors, those sellers received a median sales price of $286,500 after 64 days on market (DOM). The median is where half sold for more and half sold for less. April’s first-half median represents a $24,605, or 7.9 percent, decline from March’s median price of $311,105 and 56 DOM. Between March and the first two weeks of April, the time required to sell a home increased by 12.5 percent.
Another often cited indicator is the size of our local home inventory, which grew by 35.9 percent over the past 12 months to a modern day high of 559 units. That’s a far cry from our inventory of 163 new and existing homes for sale just two years ago. As the supply of homes continues to grow, so does the time required to sell a home. Over the past year, the week’s supply of homes for sale increased to 17.4 from 11.5. The DOM also increased, rising to 64 during the first two weeks of April from the 57 days it took to sell a home in March.
Another interesting datapoint is the relationship between the number of new listings that come online each month and the number of new contracts signed during the same month. Las Cruces-area Realtors added 214 new listings to the inventory in March but only 164 buyers signed contracts to purchase them, resulting in a larger inventory at the end of the month than when the month began.
So, there you have it. While traditionally this is the time of year when buyers come out of the woodwork, homes sell more quickly, and multiple offers abound, sellers are finding it far more challenging to find buyers for their homes.
See you at closing!
Gary Sandler is a full-time Realtor and president of Gary Sandler Inc., Realtors in Las Cruces, New Mexico. He loves to answer questions and can be reached 575-642-2292 or Gary@GarySandler.com.
This article originally appeared on Las Cruces Sun-News: Las Cruces home sales continue to slow as spring selling season begins
