Published 15 September 2019
The number of high-end homes sold through Aug. 31 of this year fell by 29.4 percent when compared to the number of sales closed during the same period one year ago, according to a Sept. 7 report from the Las Cruces Association of Realtors.
The 24 closed sales of homes valued at $500,000 and above booked during the first eight months of this year fell 10 units shy of the 34 high-end home sales booked one year ago.
The highest impact was felt in the $500,000 to $599,999 range, where year-over-year sales fell 44 percent, from 18 units to 10 units. Sales in the $600,000 to $699,900 collection also declined, falling from 13 units to 9 units, or 30.8 percent. When combined, sales in the two price ranges fell by 38.7 percent.
In a somewhat surprising twist, twice as many buyers purchased homes in the $700,000 to $799,900 this year than they did last year. The final score was four homes this year vs two homes last year.
Buyers in the $800,000 to $899,999 were nonexistent both this year and last. And while no sales at the $900,000 to $999,999 level were closed this year, just one successful closing was reported in 2018.
One lucky Picacho Hills seller in the $1,000,000 and above price range found a buyer for their property this year. No sellers were as fortunate last year.
On average, it took high-end sellers 202 days to locate their buyers. One of those sellers found a buyer in just two days, while another waited almost three and a half years for their purchaser to materialize.
While home values continue to appreciate, the rate of appreciation has been slowing over the past two years. Local properties appreciated by 7.1 percent in 2017 before declining to 5.4 percent in 2018. The rate of appreciation through the first eight months if this year slowed to 2.7 percent.
Are the reduction in the number of sales and the decline in the appreciation rate indicators that our market may be slowing? We’ll explore that notion in a future column.
See you at closing.
Gary Sandler is a full-time Realtor and owner 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.