A report just released from the New Mexico Mortgage Finance Authority reports the following:
Purchase Housing Markets
New Mexico Markets Are Localized
Residential real estate sales activity appears to have
slowed in most New Mexico markets, but it should
not be characterized as stagnant or stalled. What is
more, prices in many markets have increased over
last year despite the abundant supply in some areas.
A word of caution: not unlike most analyses of New
Mexico, real estate market analyses confirm that
markets are very different throughout the state and
it is difficult to draw statewide conclusions. The
market “snapshots” on the next page demonstrate
market distinctions throughout the state.
As the table illustrates, most markets in New Mexico
experienced a slow down in sales, and yet in
many markets, average sales prices were greater
in 2007 than they were in 2006. This market
phenomenon is not unique to New Mexico. Wells
Fargo Chairman Richard Kovacevich made the
following observation in a Washington Times article
published on December 12, 2007: “‘There’s no credit
crunch, not when you see people investing billions of
dollars into financial institutions,’ he said, referring to
recent equity sales to foreign investors by Fannie Mae
and Citigroup to bolster their capital. ‘The crunch
is that there are buyers who don’t think values are
low enough yet and sellers who don’t want to sell at
these levels.’” This appears to be the case in many New
This is great news for our area – we have always said that Albuquerque and New Mexico is a microcosm of the general national market; trends are that we have done and will do better than most markets in appreciation.
If you would like a free color copy of this report, please contact me at my website at http://www.realestateinabq.com
I can email it to you or mail to a postal address.