Is the real estate market in New Mexico picking up? According to the Realtors Association of New Mexico, home sales and median selling prices rose in May.
In May, 1,497 homes were sold throughout the state — a 6.7% increase over April’s 1,403 homes. Additionally, homes in May sold for a median of $179,900, which was a 5.9% improvement over April’s $169,900. These numbers echoed larger, national figures — in May, new home purchases showed the highest increase since January 1992, 22 years ago.
According to the Washington Post, the increase “indicates that housing is gathering momentum as employment improves and borrowing costs stabilize.” In New Mexico, the year-over-year numbers are slightly down — 1,652 home sales were reported last May, by contrast.
“I agree sales have picked up dramatically – even just in the last month alone, I myself placed four homes under contract in just one week. I think a lot of the increased sales has to do with our pleasant local climate, and the fact that so many baby boomers are beginning to reach retirement age and are now recognizing the value that comes with purchasing a home. As our home inventory decreases the prices will begin to rise.” says Nobel Davis, Luxury Home Broker at Santa Fe Exclusives
Sanylee Pasquale, RANM’s current president, says this is to be expected, and that the 2014 year totals are still ahead of pace since last year. “A steady rise in median prices is also a good indication of a healthy real estate market,” Pasquale explained in a released statement.
Home sales overall can have a noticeable and important impact on local economy. Data from the Bureau of Economic Analysis shows that when a home is sold in New Mexico, the economic activity doesn’t stop there. Instead, it generates “economic multiplier impact.” Consumers spend more on sports games, at restaurants, and at charity events.
RANM’s data indicates that residential home sales in May amounted to an economic volume of $339 million for New Mexico. According to the data, for every home sold in the state, $15,489 of income is generated from the sale on average, and $4,429 is spend on consumer items such as paint and new furniture.