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Jun 20, 2021 Are more Californians or Texans buying homes in Las Cruces?

Gary Sandler

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Published 20 June 2021

A sampling of 249 of the 1,046 sales of new and existing homes, townhomes and condominiums that closed between Jan. 1 and May 31 of this year revealed that buyers from 22 states and the District of Columbia chose to make Las Cruces their new home. The numbers were gleaned from the archives of the Las Cruces Association of Realtors on June 15.

The report also revealed that just under 24 percent of all out-of-state homebuyers who purchased a Las Cruces-area home through May 31 of this year were retirees. Another 10.4 percent of inbound households moved to our area to take a new job, while an additional 14.1 percent purchased an investment property. The remaining 51.5 percent of out-of-staters were either first-timers, buyers who moved up or down in size or price, or buyers who cited health as the reason behind their moves.

Just over one-fifth (21.6% to be exact) of all out-of-state homebuyers who moved to our area during the reporting period relocated from just four states: California (6.4%), Texas (5.6%), Arizona (5.2%) and Colorado (4.4%).

Just over 21 percent of this year’s homebuyers paid cash for their properties. Slightly less than half purchased utilizing conventional financing, while 12-percent used an FHA loan and 9.3 percent signed for a Veteran’s Administration loan. The remaining 7 to 8 percent of sales were owner-financed transactions or not reported.

In its 2020 National Movers’ Study, United Van Lines cited 32.6 as the percentage of inbound household moves to New Mexico motivated by retirement. The percentage includes both homebuyers and renters. The survey also indicates that 76.6 percent of New Mexico’s inbound relocations were made by people who were 55 years of age and older at the time of their move.

Retirees paid an average of $315,276 for their Las Cruces-area replacement homes during the first five months of this year. The average sales prices for all homes purchased through May 31 was $231,082, leaving no doubt that retirees are a positive influence on our local economy.

According to the Pew Research Center, Jan. 1, 2011, was the day that the oldest members of the Baby Boom generation turned 65 years of age. Since that fateful date, 10,000 baby boomers a day continue to celebrate their 65th birthdays.

The Pew report also notes that it will take until 2030 for the last of the remaining baby boomers to reach the magic retirement age of 65. At that time, an estimated 18 percent of our nation’s population will have reached that milestone. Today, baby boomers make up approximately 22 percent of the U.S. population. Let’s hope that increasing numbers of them continue to make Las Cruces their retirement destination.

See you at closing.

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

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