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Oct 02, 2023 Las Cruces single-family sales, values post sharp declines in September

Gary Sandler

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Published 2 October 2023

September not only marked the beginning of fall, it also marked the beginning of what appears to be a noticeable change in the behavior of the Las Cruces real estate market. That change being a steep month-over-month decline in both the number of sales closed and median sales price. The median is where half sold for more and half sold for less. The data was gleaned from a September 28 report from the Las Cruces Association of Realtors.

The year began like countless others before it, with the number of sales and median prices increasing as winter dwindled away. What wasn’t known in January but became apparent in September is that the pace of sales through the first three-quarters of the year would be 24 percent slower than it was a year earlier. Despite that fact and despite quickly-rising mortgage interest rates and fewer buyers in the marketplace, the number of sales-per-month continued to increase – until June. It is interesting to note that the number of closings in each month are trailing indicators. In reality, they are the culmination of purchase contracts that were signed 30-60 days earlier. Given that fact, it is fair to assume that the change in behavior most likely began in the July/August time frame.

Our area’s median sales price for the newly constructed single-family homes sold in January was $399,680. Condos and townhomes were not surveyed. New-home prices vacillated over the ensuing months until returning to the $399,000 range in July. The median price then dropped by just over $55,000 in August, to $343,575. Between August and September, the price dropped by an additional $14,004, to $329,535. That’s a $70,145, or 17.6 percent, decline over two months.

Existing-home sales performed a bit differently than their younger counterparts, beginning the year with a January median of $271,750. The median also experienced ups and downs until peaking at $307,000 in August. Between August and September, the price declined by $22,000, to $285,000 – a 7.2 percent difference.

Freddie Mac’s September 28 announcement that the 30-year fixed rate mortgage rose to 7.3 percent, the highest since 2000, certainly won’t make homebuying and selling any easier as we enter what is traditionally the slowest sales months of the year.

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 at 575-642-2292 or Gary@GarySandler.com.

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