Since our last Market Report for the first half of 2012,
the 3rd Quarter-2012 has met and exceeded our expectations.
Home Sales for 2012 have:
1-Increased Month over the previous Month during the year, but also year over year for every Month not only vs. 2011, but most dramatically, they have increased Month over month for every year since 2009
2-Since 2006, and prior to 2012, there has been a steady decrease in the Total Number of Homes Sold. Sales have fallen steadily from Annual Total Sales of 2435 homes in 2006 to only 1081 in 2011. The first 9-months of 2012 have completely reversed this with first monthly and annual increased sales since 2006.
We can say with relative certainty that Demand Side (Homes Sales) of the Las Cruces Real Estate Market has recovered from the downward Market spiral it has been experiencing since 2006.
Why should we believe 2012 is the year the Overall Market could begin a full turn around with Supply being consumed and Prices rising again?
Median Price Of Sold Homes Much comment has been made about our Median Home Prices not recovering as much or as quickly as some would like. Prices are starting to make their move too.
Our 2nd Quarter report showed the Median Home Price to be $141,000 down 7.2% from 2011 Median Price of $152,000. For the 3rd Q of 2012 the Median Price of homes sold is $144,500 only 5% below 2011. T
here is improvement, and "slow and steady wins the race."
Foreclosures as a factor in Median Prices
We know this has been a problem in depressing Median Price recovery both because of the number and prices of Forclosures. At the end of 2-Q 2012, Foreclosures were 21.5% of total sales with a Median Price of $115,000
There are NOW only 80 Active Foreclosure Listings representing only 6.67% of the total, listings, and, for the 3rd Q 2012 Foreclosures only represent 17% of sales and the Median Price that has risen to $125,250.
The 3rd Q 2012 reduction in foreclosure sales and increase in Median Price of those sold is a good sign going forward that the Median Price of homes sold will increase as Foreclosure availability decreases.
This could be quite a dramatic change because when we exclude foreclosure sales the Median Price of all 2012 SFH Sold is $149,450.
The final discussion revolves around the trend of the Current Market as expressed by the Absorption Rate - (time in months to sell available homes at the current rate of sales). This is the Real Estate measure of Supply and Demand.
To Download the full report click the link below! And let us know what you think!
Las Cruces Real Estate Market Analysis
January Through September 2012 (PDF)
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