Purchasing a home in New Mexico is a great investment in 2019, but regional differences can vary. During the spring buying season, prices will be at their highest, but there should be plenty of options for buyers. In the fall and winter, inventory is lower but buyers have more purchasing power.
Buying a house is a stressful and emotional process. You'll likely have to spend weeks touring properties, fill out hundreds of forms, and invest a large chunk of your savings to secure the right house.
One way to make buying a house easier is starting the process at the right time. In New Mexico, housing inventory, mortgage rates, and market trends vary from month to month.
For example, this year listing prices for homes in New Mexico were lowest in April. On average, homes were $29,476 less expensive. While in October — the month with the highest prices — the listing prices were $38,051 more than the annual average.
In truth, the best time to buy a house really depends on your priorities and situation. Read on to find out which time of year will give you the most options and the biggest savings when buying a house in New Mexico.
Best Month For
7.1% lower than average
12.6% more homes to choose from
2.96% interest for 30-year mortgage
Realtor.com data (10/1/2020)
Bankrate data (12/1/2020)
If you're interested in buying a home, the first step in the home buying journey is to find an experienced realtor who's an expert in your local market. The right agent can help you find the best house for your budget and priorities - and negotiate a winning offer so you don't miss out on your dream home.
The easiest way to find a great local realtor is to use a free service like Clever Real Estate. Clever matches home buyers like you with top agents in your area so you can compare your options and choose a realtor who's the right fit for you.
You can interview multiple agents until you find the perfect fit, or walk away at any time - Clever's service is 100% free with no obligation. Fill out the form below to instantly request hand-picked agent matches now!
Seasonal Home Prices in New Mexico
The statewide average home price in New Mexico is $195,000, an increase of 7.9% over the previous year. Statewide median listing prices have been their highest in June and July over the past five years, and time on the market falls an average of about 32 days during this time as well.
On average, the difference in listing prices rises $16,000 from February to July according to Zillow and can swing even more in certain markets. The average home value in Albuquerque is $311,000 compared to $140,000 in Las Cruces, making seasonal fluctuations much more of a factor in certain markets.
While increased prices and less time on the market is great for sellers, it doesn’t translate as the best time of the year to purchase. For example, in Albuquerque when prices are at their lowest there were 40% less transactions than during the late spring/summer high.
Deals are much more likely to be found during the winter months and there is unlikely to be a bidding war for them. However, finding the right home may take more time and often requires working with a local real estate agent willing to hunt them down for you.
Top Cities to Consider When Buying in New Mexico
The housing market in Santa Fe has been on fire, rising over 18% in the past year, and is expected to increase another 9% in 2019. While this may make bargain hunting a bit difficult, it also shows just how attractive the capital is as a place to live and raise a family.
The median listing price in Los Alamos is $335,000 making it one of the more affluent suburbs of Santa Fe, but residents here benefit from amazing schools and beautiful and abundant open spaces. The historic importance of Los Alamos is also interesting and makes sense considering the city still maintains a highly educated workforce.
Known for the spectacular Carlsbad Caverns National Park, this city continually scores high on quality of life indicators. Median home prices in Carlsbad are around $140,000, which fits with a community that has a cost of living almost 15% lower than the rest of New Mexico.
The largest city in New Mexico, with over 500,000 residents, has a neighborhood for everyone. Young professionals enjoy the nightlife and urban setting, families can find affordable options in neighborhoods filled with parks, and economic indicators are strong for everyone. Jobs grew at a rate of 3.3% last year, and this carried over to home prices rising 6.5% over the past year.
4 Ways to Get a Great Deal on a Home Anywhere in New Mexico
1. Find a Great Real Estate Agent
With many different factors influencing local real estate markets, it is important to work with a local expert. An experienced real estate agent can keep you apprised of the inventory of homes available, recommend neighborhoods that meet your needs and uncover deals in the local market.
A great agent will also support you through the entire purchasing process and help you when it comes time to actually move into your home. They are there to recommend local movers, renovators, or anything that will make moving into the home of your dreams a smooth process.
2. Assess Your Needs and Layout Your Goals
Your agent can help you come up with a purchasing plan that keeps in mind what type of home, an ideal neighborhood, and in what price range you are looking for. Have your agent check local zoning codes if you want to make modifications, look into school districts if you have children, and check comparable sales so you can come in with a strong offer.
3. Find a Lender and Secure Financing
Unless you plan to buy your home with cash, you'll need to apply for a mortgage. For most home buyers in New Mexico, interest rates are among the biggest factors when choosing a lender. Doing a little upfront research and comparing options to find the best rates could save you tens of thousands of dollars over the life of your loan.
For example, in New Mexico a typical house is worth $219,000. Assuming a 20% down payment, if you took out a 30-year mortgage for 3.5%, your monthly payment would be $781. But if you shopped around and found a 3% mortgage, your monthly payment would drop to about $739.
Getting a mortgage is a big decision – and it pays to shop around! Keep shopping until you find a lender with competitive rates who also understands your goals. Don’t get pressured into taking on a bigger loan than you’re comfortable with – work with a lender who explains what you’re really signing up for.
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4. Negotiate the Best Possible Price
Once you’ve chosen your dream property, your agent will help you make and submit an offer, then negotiate, following the home inspection, to ensure you’re getting the best deal possible. A good agent will have knowledge of the local market, necessary repairs that will still need to be done, and any other limiting factors that could impact the final price.
If you are looking for a home in New Mexico and need a quality local real estate agent by your side, a Clever Partner Agent can help you. Clever connects you with the top agents in your area and guides you through every step of the home search, negotiation, and closing process.