Are we overpriced in Clovis?

By
Real Estate Agent with Weichert Realtors, The 505 Group

I deal with many people being transferred to Clovis, New Mexico and the comment I hear most is "Wow- Clovis is overpriced. Dont the people in Clovis know that they are more expensive than the houses in Lubbock, Amarillo, or Dallas?"

So Id like to give you a few reasons to avoid the accusation that we have raised our prices  just because we can, or because there is a big Realtor conspiracy going on. - (There Isn't)

It costs more to build in Clovis. -

  • The New Mexico gross receipts tax that builders must pay in New Mexico is much higher than it is in Texas.
  • We are further away from major shipping areas than Lubbock or Albuquerque or Dallas and so it costs more to get construction materials here.
  • We have a smaller labor pool with less competition and invariably our contractors and tradesmen are swamped and so not only does it cost more but it takes longer.

We have fewer houses on the market than many metropolitan areas.

  • Lubbock has over 1000 listings on the market, As of 8/5/2008 Clovis had 285 Active Residential Listings with an average listing price of $149,072. 

We face a unique situation here in Clovis, In 2005 Cannon AFB was put on the BRAC list to close. While we were waiting to find out our status people were very scared to buy. The Air Force put Cannon in an enclave status while a new mission was found. The decision was made to make Cannon AFB the new home of the 27th Special Operations wing and we faced several years (2006-2007) of families leaving the area with no one to replace them.

  • From Jan-August 2006 there were 484 listings sold with an average sale price of $119,041.
  • From Jan-August 2007 there were 44 (no that isnt a typo) listings sold with an average sales price of $118,711. (most of these were investors and people who simply had to buy now- no matter what happened to the base- Everyone else was scared)

Then people began repopulating the base. Families were coming again to Cannon AFB and people who were going to sell/buy and had been waiting realized that as availiable housing was snatched up their opportunity to buy was now.

  • From Jan - August 2008 325 listings were sold at an average price of $142,910.

This doesnt mean that we tacked $20,000 onto every listing we had. It means that the year before investors were buying what would make good rentals, moderately sized housing with a good investment return. Now people are moving into the area and need/want housing on the Northeast side of town and the price of those newer, larger houses is more than the good investment properties in other areas of town.

The military who are being transferred from the area need to sell their houses and they are the people who are being hurt by the people who start rumors that every house in Clovis is $40,000 overpriced. It will be interesting to see what prices do as more people come and there are fewer and fewer houses on the market. Builders are building as fast as they can but now is a great time to buy in Clovis!

 

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Anonymous
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you've got to be joking...

Oct 17, 2010 09:14 AM #1
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