New Mexico real estate is projected to see a double digit drop in home values across major cities for 2009 as many new homes still remain empty due to lack of demand. However, the long term outlook looks better with enchanting tourist towns like Santa Fe that will be sure to attract investment. See the following article from Housing Predictor to learn more about the state of New Mexico real estate.
In what might be a twist of fate things aren’t too bad in New Mexico even as unemployment climbs and foreclosures remain a threat to a housing market that is showing few signs of stabilizing. New Mexico has seen its fortunes leap, attracting new industries and a job base that fosters future promises of growth.
The Land of Enchantment is the state’s motto and you just might be able to flash your Land of Enchantment card to earn a pass on the worst of the financial crisis in New Mexico.
The unemployment rate is climbing but is much lower than the majority of the country. New businesses have moved to the state, which has offered a variety of incentives to attract jobs in high-tech, the movie industry and even the hard hit financial sector.
The building boom in Albuquerque has all but halted after a strong five-year spurt. However, the last time the city saw job losses like it is now was back in the Savings and Loan Crisis, which will act to hurt the housing market’s future. Home sales have climbed but are nearly half off their record pace, and are projected to remain sluggish through the remainder of the year.
Local New Mexico Housing Markets at a Glance
|Las Cruces||− 14.5%|
|Santa Fe||− 17.4%|
Prices will need to drop further in Albuquerque before pent up buyer demand reaches the point to attract enough buyers back into the market on any sizeable scale. Average housing deflation is forecast to hit 13.7% by the year’s end.
In the state’s second largest urban area, Las Cruces the housing market has come to a five year slowdown. Foreclosures are piling-up as the back-log of vacant homes chills the marketplace. The over-supply of homes is hurting Las Cruces and tougher mortgage qualification standards are making it more difficult for home buyers.
Dozens of new homes are sitting on the market waiting for conditions to improve in Las Cruces even as more and more homeowners walk away from their mortgages. Housing Predictor forecasts the market will see housing deflation of 14.5% in 2009. Lower prices paid for natural gas and oil are also hurting New Mexico’s economy with more lay-offs in the industry looming.
Santa Fe is a tourist town that attracted a subculture of artists and free thinkers as its residents. But with the boom came new construction and business development. The recession has changed the environment in Santa Fe with a slower than normal tourist season. Santa Fe is suffering through the downturn and housing values are rapidly falling.
As home values on especially high-end vacation homes fall, foreclosures are on the rise in the mountain top community, centered near the Red Rock beauty of the high desert. Full time residents are more likely to wait out the downturn than second home buyers. The inventory of homes has grown as prices decline, and is forecast to deflate an average of 17.4% in 2009. The enchanting desirability of Santa Fe will win out over time as the financial crisis unwinds.
This article has been republished from Housing Predictor. You can also view this article at Housing Predictor, a real estate analysis and forecasting site.