New Mexico housing market

Is it a buyer’s or seller’s market in New Mexico?

It is considered a seller’s market right now. Housing inventory is up since last year, which means supply is less constrained. Mortgage rates are 6.8%, making the average house payment $2,533, which is $127 lower than a year before.

Total months of housing supply available for sale is 3.9 months, up 39.3% from 2.8 month(s) in August 2023.

Months of Supply

The Months of Supply housing metric is an estimate of how long it would take to sell all the homes for sale relative to the number of homes sold each month. Historically, 5 to 6 months is the average. You may also hear this metric referred to as the "absorption rate."

Lower months of housing supply typically signal a seller’s market whereas when months of supply is greater than 6 months typically signal a buyer’s market.

Sales to Listing Ratio

Sales to Listing Ratios are an indicator of supply and demand. It is all the completed sales in the past month divided by the total number of active listings.

In a balanced real estate market, the total number of home sales to active listings ratio is between 0.12 and 0.2 while markets with a ratio higher than 0.2 favors seller’s, as homes are selling fast and there is limited inventory, while markets below 0.12 favor home buyers because there is a larger supply of homes to purchase.

Selling a house in New Mexico

Home values have increased by 3.7% since last year, and the number of days it takes to sell a home has increased from 34 days in August 2023 to 44 days in August 2024.

The best time to sell your home in New Mexico is in September, when homes sell fastest and for the most money.

Sellers typically pay the commission of both the listing and buyer’s agents, which typically total 5-6% of the home sale price. That’s $22,578 paid in commission to the real estate agents. You’d also need to factor in closing costs, plus other fees and your mortgage payoff amount, to calculate the net proceeds from your home sale.

Buying a house in New Mexico

Homes in New Mexico have a median price of $376,300, which means you’ll need $37,630 for a 10% down payment. Housing costs have increased 3.7% in the past year. When you’re several months out and have your down payment saved, make sure to get pre-approved for a mortgage and find a real estate agent.

Home values are only one part of the home affordability equation. When buying a house in New Mexico, don’t forget to also account for closing costs, which are typically 3-4% of the home cost. In addition to a down payment of $37,630 you should have $15,052 as well as budget for cash reserves, moving expenses and ongoing homeownership costs for home maintenance and repairs or HOA fees.

New Mexico home values are 33.1% more expensive than Oklahoma and 13.4% cheaper than the national median home value.

New Mexico housing market FAQs

• Are New Mexico home prices dropping or rising?

  Home prices in New Mexico are rising overall. Median home prices are up 3.7% since August 2023 and up 18% in the past 3 years.

• Is New Mexico a seller’s market in August 2024?

  The New Mexico housing market is a seller’s market. Homes in New Mexico stayed on the market for 44 days in August 2024.

• Is New Mexico a buyer’s market in August 2024?

  The New Mexico housing market is is not a buyer’s market, it’s considered a seller’s market. Homes in New Mexico stayed on the market for 44 days in August 2024, slower than 34 days a year prior.

• When is the best time to buy a house in New Mexico?

  The best time to buy a house in New Mexico is in December when homes sell for 93.7% of the list price.

• When is the best time to sell a house in New Mexico?

  The best time to sell a house in New Mexico is in September when homes sell for 97.8% of the list price and go pending in 36 days.