Lately it feels like the headlines are giving a doom and gloom outlook on our housing market. This month's report shows a much better story.
Many people I talk to still want to talk about 2020-2021. Record low mortgage rates, bidding wars, and homes going under contract in hours. Those days are gone and they won't be returning.
When people compare those days, of course the market looks rough to them. But that's not in any way the case here in Southern New Mexico. Our market is holding up surprisingly well, especially despite many factors that have had an effect on our economy.
Let's start with the almost 30 percent increase in overall closings compared to last year. Single family homes are closing, and they are closing within a reasonable amount of time on the market. Sellers are starting to adjust to more realistic pricing strategies, and buyers are bringing their negotiating strategies to the offer table.
Deals are being made and both buyers’ and sellers’ goals are being met. While this report is showing to be more favorable toward sellers, buyers are also benefiting greatly from closing when the right deals are being made.
The current level of active inventory is approximately 3.5 months, which continues to indicate a strong seller's market. At the same time, new listings are coming onto the market at a much higher pace, giving buyers more choices and additional time to evaluate properties and negotiate favorable terms, and sellers are willing to make a deal.
We are also starting to see a return in lender incentives; some local lenders are offering up to $5,000 in closing cost credits and getting more competitive with interest rates.
There are even new home builders offering point buydowns that are bringing rates as low as 4.7 percent , giving much needed relief in mortgage payments. You just have to look for the deal that's best for you, and it's always good to make sure you're working with a good real estate pro to help you with the process.
Southern New Mexico's housing market is strong as we start to wrap up the summer. You can expect buyer activity to strengthen as broader economic conditions stabilize.
Homeowners' equities are building, buyers are writing offers, and those offers are finding a way to the closing table at 97 percent of asking price. It's still a great time to be a homeowner in Southern New Mexico.
