Kim Clark, AE, GAD
Market Still Bouncing
Looking at the Statistics for Silver City Regional Association of Realtors show that the market is still bouncing around and has not quite stabilized.
The first quarter sales in the Grant County area saw an increase in 2010 with 61 residential closings at a 79 % increase over first quarter residential sales in 2009. The median sold price however decreased by 6.7 % with the average sales price of $155,936. There are currently 280 residential properties listed in the Silver City Regional Multiple Listing Service with an average price of $269,979 and an average of 227 days on the market. It would appear from the figures that overall the sales have improved, but prices are definitely still continuing to go down.
The number of single-family home sales in New Mexico in April increased 14.4% from April 2009 and is up .7% from March 2010. 1,223 sales were reported to the REALTORS® Association of New Mexico for April 2010. Activity continues to reflect buyers out to beat the deadline (April 30) for tax credits. The median sales price of a New Mexico home during April 2010 was $175,000. The April median sales price is 2.9% higher than March’s median and 1.4% higher than the April 2009 median.
Steven Anaya, Executive Vice President of the REALTORS Association of New Mexico said “Home sales activity seems to be on the upswing. The real test of a sustained recovery will come now that tax credit incentives have expired. Preliminary pending home sales numbers, continued low mortgage rates, and other economic predictions indicate improvement will continue, but there are still bumps in the road. According to a recent NATIONAL ASSOCIATION OF REALTORS® survey, difficulty in obtaining a mortgage has replaced expectations that prices may fall as the most important factor in limiting clients.”
Nationwide existing-home sales rose again in April with buyers motivated by the tax credit, improving consumer confidence and favorable affordability conditions, according to the National Association of Realtors®. Existing-home sales, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.
Lawrence Yun, NAR chief economist, said the gain was widely anticipated. “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market,” he said. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”