COVID-19 and New Mexico’s May Housing Market
Via: New Mexico Association of Realtors - June 17
The coronavirus pandemic has had an effect on all aspects of life and the economy. While REALTORS continue virtual showings, face coverings, social distancing at in-person showings, and hand sanitizer for clients, customers, and themselves, the real estate market continues to be a bright spot in New Mexico’s economy compared to other industries such as tourism and oil and gas.
Even though some buyers and sellers are taking a “wait and see” attitude, buyers who are fortunate to not been furloughed or laid-off are taking advantage of the continued low mortgage interest rates and are buying houses. The statewide average of 54 days-on-market for May is the least number of days from listing to sale since the New Mexico Association of REALTORS (NMAR) started tracking this statistic in 2018. Days-on-market varies widely across the state with more densely populated counties showing lower numbers than sparsely populated areas.
While properties on the market are selling quickly and some are even receiving multiple offers, May 2020 sales numbers are down 28% from May 2019 sales.
“1,803 May 2020 sales were reported to NMAR,” according to James Russ II, NMAR President. “The April pending listings number of 1,884 served as a good predictor for the May sales market. The good news for real estate is that May pendings (2,573) are up 12% from the pendings number reported in May 2019.”
“May numbers bring the year-to-date totals to 9,049 sales,” adds Steven Anaya, NMAR CEO. “This number is less than 7% behind the year-to-date number for 2019. At this point in time, the 2020 market looks like it will be a similar to that of 2017 when the total sales January through May were 8,276.”
Russ reports “the May 2020 median price of $220,000 is equal to the May 2019 median and only 2.4% less than the median of $225,500 reported for April 2020. Median prices have ranged from between a low of $190,000 to a high of $228,000 for the last two years.” Median price means half the properties sold for more, half for less.
The number of active listings across the state continues to increase, but lack of inventory continues to be a problem in many areas.
The trends and numbers reported are only a snapshot of market activity. If you are interested in buying or selling, consult a REALTOR familiar with your market area; he/she can provide information on specific trends in your neighborhood.