Housing report brings a halt, closings down 20%  

As we approach the summer's end, we also approach what's been a typical slowdown in real estate as fall begins and we start to prepare for the holiday months.   

August's real estate report shows a heavy shift toward a possible fall and winter buyers' market if inventory continues to rise.  Affordability constraints caused by high interest rates and high-priced listings are the main factor in the market slowdown we are experiencing in southern New Mexico. 

For months now, the median list price has remained almost the same and has only seen a small decrease since the beginning of the year.  This means sellers are still expecting their home to move as homes did in 2021.  Unfortunately, those days are over.  Buyers have many more options.  Many buyers are simply not interested in making any impulse moves, they are taking their time.  

The August report, however, still gives some optimism for anyone who needs to sell in the fall.  Listings that are going under contract are still doing so in a reasonable amount of time as long as they are priced well - in some cases slightly under market value. For buyers, there are more options as we now are seeing inventories in the 800+ range, not including some new builds available that may not be listed. 

Rates have dropped to the lowest levels in almost a year as the federal government signals two drops in base rate by the end of the year.  This could bring a small push to the fall buyer season as some buyers have held out for lower rates and have some negotiating power.  With a 97% list to sell price ratio,  it's still a great time to be a Las Cruces homeowner.