The state of New Mexico, known as the “Land of Enchantment” was the 47th state added to the United States. It is the fifth largest state by size measuring 121,593 square miles. Despite its size, the population of 2,085,583 is only 36th in the country. Three American Indian reservations and 19 pueblos can be found in the state.
New Mexico is the third leading producer of crude oil and natural gas in the United States which contributes to the overall health of the New Mexico real estate.
The economy is dependent largely dependent upon the U.S. military. There are several Army and Air Force bases and other installations such as testing and maneuvering ranges and proving grounds. New Mexico is also home to several technology labs. Most people live relatively close to their place of employment with an average commute time of 22 minutes (the national average is 25 minutes). The cost of living in New Mexico is minimally higher than the rest of the country, the main factor contributing to this is housing costs being higher than the national average.
Don’t Forget To Check Out The 2015 New Mexico Housing Market Predictions to Compare This Year’s Report
The value of homes in the New Mexico real estate market has increased since last year and is expected to continue going up by an increasing margin. The housing market predictions expect to see some increase in market moving forward; however, the 2016 housing market appears to be in a dire situation. The home appreciation rate was only 1.60% in the last 12 months which is considerably lower than the national rate of 4.90%. Overall, the health rating of the real estate market in New Mexico is only 1.7 out of 10 as rated by Zillow.
The age of inventory is at a staggering 126 days, far higher than any of New Mexico’s neighboring states. The population growth is at 0.64% with an unemployment rate of 6.2%, above the national rate of 5%. Such a small population and the lack of jobs may lead to people leaving New Mexico in search of work. This could lead to an excess of vacant properties, both unsold and unrented. Craigslist Albuquerque has a long list of homes ranging from two bedrooms to four bedrooms with prices spanning $186,900 to $498,000. Likewise, rental properties listed go from 2 bedrooms to 5 bedrooms and can cost anywhere from $600 to $2000. Zillow Albuquerque lists the rent index as $1188, below the national median rent of $1404. The average rent is $779 while the median is $777, an increase of 0.91% from 2015.
Find a Cool Hideaway From The Warm Weather with Property Like This On The Albuquerque real estate market!
Influencing Factors for the 2016 New Mexico Housing Market
- The Zillow Home Value Index is $166,400. This number reflects an increase of 1.8% since last year. The increase is predicted to continue rising to 2.6% over the next year.
- Foreclosures in New Mexico average 0.10%, slightly above the national average of 0.08%. There are very few properties listed a new or recent foreclosures.
- Renters spend, on average, 20.81% of their income on rent alone. That number is down 0.30% from 2015 and down 0.04% over the last three years. The percentage in New Mexico is aligned with that of the national percentage of 20.89%.
- The current mortgage interest rate is 3.44%, which is up from 3.37% last year. This up 0.05 for a 30 year mortgage and 0.03 for a 15 year mortgage.
- The real estate market in New Mexico is especially at risk due to the high unemployment rate. There is also a small rate of population growth. The could be a contributor to the poor real estate market because many residents may have begun moving out of the state in search of more or better employment opportunities.
Best Places to Live in New Mexico
Albuquerque is the largest and most populous (545,852) city in the state of New Mexico. It is the 35th most popular city in the United States. Albuquerque may be best known for and beautiful views, a temperate climate, and arts and culture, but it suffers from an unfortunately high crime rate like many large cities. It is bordered by mountains and canyons and is approximately 90 miles east of the Continental Divide. Home to the University of New Mexico, the city is split mainly between upscale and middle class neighborhoods. The climate is primarily sunny and hot in the summer while only occasionally sinking to freezing temperatures in the winter.
The Albuquerque real estate market is the 56th largest in the country. According to Trulia Albuquerque 72% of the population are home owners, 37% are single, with a median age of 39 years. There are currently 3931 houses for sale in the state with an average list price of $230,200. Since 2015, listings have dropped 10.1% while prices have risen 2.4%. There are 406 rental properties available. The median time that a property spends on the market is 59 days, which is down by 1.7% but still shorter than the national median of 65 days. The Zillow rent index is $1192, an annual increase if 0.3%. The foreclosure rate in Albuquerque is 1 in every 648 as of May 2016.
Las Cruces, located in the Mesilla Valley near the Mexican and Texas borders, is the second most populous city in New Mexico with just under 100,000 residents (97,393). The Las Cruces real estate market is significantly smaller than Albuquerque considering it is next in population, the fact that it is somewhat isolated may be a contributing factor. It is the 213th largest market and has only 976 listings with a median list price of $197,400. The listing number has dropped by more than 11% since last year and the listing price has only minimally increase by 0.3%. One of the largest problems in the New Mexico real estate market is the age of inventory when a house is on the market. The median age is 90 days or approximately 3 months. White Sands National Monument is located to the northeast of the city. The largest employer in Las Cruces is New Mexico State University.
The capital of New Mexico is Santa Fe, located to the northeast of Albuquerque below the Rocky Mountains, is home to 68,298 people. People are often drawn to Santa Fe for the American Indian, Spanish, and European history and culture as much as the desert climate, despite the fact that it is a tourist destination and the high cost of living (20.20% higher than the national average). The Santa Fe real estate market is the 247th largest market in the United States. Santa Fe has 1422 listings, 3.9% less than last year. List prices are up 9.3% to $470,000 with a home value of $293,200. The inventory age of 79 days exceeds the national median age but not to the extent of Las Cruces.
Roswell is the fifth largest city in New Mexico, located southeast of Albuquerque. While the unemployment rate (5.70%) is below that of the U.S. average (6.30%), the job growth is currently negative. A benefit of living in Roswell is the reasonable cost of living, 16% lower that the U.S. average. The population has seen an increase of 6.6% and is currently at 48,167 residents. Of the 202 homes for sale in the Roswell NM real estate market, the average list price is $177,382. The median monthly rent amount is $975, for approximately 20 rental units available. There are currently only 9 foreclosures in Roswell. Roswell is home to a well-known UFO museum associated with a rumored UFO incident that occurred in the 1940s.
Taos is a small town just over 5 square miles and a population of approximately 5,661. It is known primarily for the Native American adobe dwellings and a long time artist colony. The Taos real estate market is extremely limited. The median listing for a house is $175,000 with a market of 807 and only one two bedroom apartment for rent at a rate of $750 per month. With a high unemployment rate, 8.60%, and 0.53% decrease in jobs, the job growth is currently negative.