• Mar 16, 2018 2018 Las Cruces home sales off to best start in more than a decade
    Gary Sandler
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    Published 16 March 2018

    LAS CRUCES – More free-standing, single-family homes were sold during the first two months of 2018 than in any of the past 11 years, according to a March 11 report from the Las Cruces Association of Realtors. Local buyers and sellers closed 242 transactions in January and February — a number that hasn’t been seen since 2007, when 241 free-standing homes were sold.

    In addition to the 242 new and existing free-standing homes that were sold during the first 59 days of this year, seven condominiums and nine townhomes also changed hands. In all, sales were up 22.8 percent over the 197 closings reported during the same period last year.

    January and February new-home sales accounted for 12 percent of all closings and were 30 percent higher than they were one year ago. This year’s tally of 26 closed sales exceeded the 20-unit count reported in 2017 by six units. This year’s average new-home price of $238,204 rose by $41,320, or 21 percent, over the $196,884 average price posted during the first two months of 2017.

    January, February 2018 Las Cruces home sales. (Photo: Las Cruces Association of Realtors)

    Sales of existing homes also posted significant gains with 216 individual units sold. That’s a 39-unit, or 22 percent, improvement over the 177 units sold last year. This year’s average existing-home price of $201,800 was $21,894, or 14.1 percent, higher than the $176,906 average price achieved during the first two months of last year.

    A lack of inventory continues to challenge homebuyers. The current inventory of 618 homes includes 583 free-standing models, 24 townhomes and 11 condominiums. Compare those numbers with the 1,785 homes listed for sale when our market peaked in 2007 and it’s easy to understand why buyers are having a difficult time finding suitable properties.

    That could change slightly, however, as rising mortgage interest rates make it more difficult for buyers to qualify for loans. According to the Mortgage Bankers Association, the pace of new loan applications dropped by 5 percent following the recent rise in rates, with refinances falling 13 percent from one year ago.

    On the other hand, our spring and summer selling season is just about upon us. Given the boost to the economy triggered by recent tax reforms and a robust job market, there’s a better than even chance that our local prices and production numbers will continue to grow.

    See you at closing!

    Gary Sandler is a full-time Realtor and president of Gary Sandler Inc., Realtors in Las Cruces. He can be reached at 575-642-2292 or Gary@GarySandler.com.

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      Gary Sandler