Las Cruces month's supply of homes varies by neighborhood
When it comes to determining how long it would take to exhaust the inventory of Las Cruces-area single family homes at the current sales rate, the answer depends on where the homes are located.
Take for example the Sonoma Ranch area. According to a May 23 report from the Las Cruces Association of Realtors, the western half, known as Sonoma West, contained 37 new and existing homes, townhomes and condominiums for sale. The report also revealed that 13 homes closed escrow over the previous 30-day period, resulting in a 2.8-month supply. The supply in Sonoma East is a bit longer at 3 months.
The supply of unsold homes balloons to 10-months in the Picacho Hills area, where just two sales closed in the past 30-days. The current unsold inventory there stands at 20 units. The numbers are identical for the Town of Mesilla, which also boasts a 10-month supply. The supply nosedives to 2.2 months in the Alameda area near downtown Las Cruces, with 11 homes in inventory and 5 sold over the past 30 days. With 14 homes in inventory and 4 sales over the past 30 days, the North Valley enjoys a 3.5-month supply.
With 7 closings over the past month and 8 homes in inventory, the numbers indicate a scant 1.1-month supply in the Dona Ana area. In the Las Colinas/Redhawk Golf Course area north of Highway 70, the 119 homes in inventory and 32 sales indicate the supply will last for just under 4-months at the current sales rate.
It would take approximately 3.2 months to exhaust the supply of homes in the South Valley, between Las Cruces and La Mesa, where 6 closings took place, and 19 homes are in inventory. With 25 homes in inventory and 6 closed sales, it would take 4.2 months to reduce the inventory to zero in the Elks area. When taken as a whole, the report indicates it would take 3.9 months to drain our inventory of just over 600 homes.
It has been common in the real estate industry to assume that a 6-month supply indicates a balanced market. A supply above that number typically favors buyers, while the opposite is true when the number is lower. High mortgage rates have thrown a wrench into those assumptions, however, as buyers who are able and qualified to purchase at today’s rates opt to purchase the best homes for the money, while leaving the rest behind to fend for themselves.
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 month's supply of homes varies by neighborhood
