• Jul 21, 2019 Rate of home price appreciation slowing
    Gary Sandler
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    Published 21 July 2019

    There’s no question that home values in and around Las Cruces have been on the rise over the past few years. The pace at which those values have been rising has begun to slow, however.

    A report on existing-home sales gleaned from the archives of the Las Cruces Association of Realtors on July 14 revealed that the median sales prices of previously owned homes varied widely since the mortgage meltdown of 2007. The median price is where half sold for more and half sold for less and is the best indicator of whether the market favors buyers or sellers. The pendulum still favors sellers but has slowly begun to swing in the opposite direction.

    A look back at the statistics reveals that the median price for free-standing, existing single-family homes sold in the Las Cruces area during the first six months of the year peaked at $191,000 in 2008. The following year the median price had fallen by $21,000 to $170,000; an 11 percent decline. Between 2009 and 2012 the median price dropped by another $27,000, or 15.9 percent, to $143,250.

    In 2013 the median price then rose by 4.7 percent, or $6,750, to $150,000. Values rose again in 2014 by an additional 3.3 percent to $155,000 before declining by 6.5 percent in 2015 to $145,000.

    Values began to rise again in 2016, increasing by $10,000, or 6.9 percent, to $155,000. Between 2016 and 2017, the median price improved by an additional $11,000, or 7.1 percent, to $166,000. That year represented our modern-day rate-of-appreciation peak.

    While values increased by $9,000, to $175,000, between 2017 and 2018, the appreciation rate slowed to 5.4 percent. The appreciation slowed to 2.7 percent during the first half of this year as the median price increased by just $5,000, to $180,000.

    A slowing appreciation rate may not be a bad thing. When home values appreciate significantly year-over-year, the prospects of a price bubble bursting are much higher than when prices experience a slow and steady rise.

    The fact remains that the 954 new and existing homes, townhomes and condominiums sold during the first half of this year came within 11 units of the 965 properties sold during the first half of 2018. Will sales during the second half of this year ultimately outpace last year’s total number of homes sold? I’ll let you know next January.

    See you at closing!

    The median price for free-standing, existing single-family homes sold in Las Cruces, by year:

    2007: $182,000
    2008: $191,000
    2009: $170,250
    2010: $167,300
    2011: $164,900
    2012: $143,250
    2013: $150,000
    2014: $155,000
    2015: $145,000
    2016: $155,000
    2017: $166,000
    2018: $175,000
    2019: $180,000

    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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      Gary Sandler