December market report

The holidays are here.  The year is about to end. And we are about to start a new era in our Southern New Mexico Real Estate Market. Following a mixed jobs report, interest rates dropped to an average of 6.1%.  Economists are predicting this rate will hold steady with some increases and a couple of modest decreases throughout the upcoming year as the fed has projected no more than two more drops in basis points for 2026.  

November's report tells us the state of our market is stable. Home prices are falling but are still holding at a rate that has allowed sellers to enjoy a fair amount of equity, especially those who purchased during the pre-pandemic era. 

Buyers have already closed some great deals that have worked in their favor in the past year and will continue next year.   Lower borrowing costs combined with projected wage growths,  increased inventory; more options in all price points will encourage more buyers to enter the market. 

The new year will show lots of signs of our market getting back to what we consider to be normal.   By definition, a consistent 5.5 months of active inventory indicates a buyers' market.  This month is the second time this year we met or exceeded 5.5 months of inventory.   

You can expect this number to be absorbed by the start of the spring market.  Keeping Southern New México's market balanced.  The two deciding factors will be where both prices and interest rates trend at the start of spring buyer season.    It's still a great time to be a las Cruces homeowner.   Happy Holidays and Happy New Year to everyone.  See you next year.