Wednesday, April 23, 2008


A report just released from the New Mexico Mortgage Finance Authority reports the following: Purchase Housing Markets New Mexico Markets Are Localized Residential real estate sales activity appears to have slowed in most New Mexico markets, but it should not be characterized as stagnant or stalled. What is more, prices in many markets have increased over last year despite the abundant supply in some areas. A word of caution: not unlike most analyses of New Mexico, real estate market analyses confirm that markets are very different throughout the state and it is difficult to draw statewide conclusions. The market “snapshots” on the next page demonstrate market distinctions throughout the state. As the table illustrates, most markets in New Mexico experienced a slow down in sales, and yet in many markets, average sales prices were greater in 2007 than they were in 2006. This market phenomenon is not unique to New Mexico. Wells Fargo Chairman Richard Kovacevich made the following observation in a Washington Times article published on December 12, 2007: “‘There’s no credit crunch, not when you see people investing billions of dollars into financial institutions,’ he said, referring to recent equity sales to foreign investors by Fannie Mae and Citigroup to bolster their capital. ‘The crunch is that there are buyers who don’t think values are low enough yet and sellers who don’t want to sell at these levels.’” This appears to be the case in many New Mexico markets. This is great news for our area - we have always said that Albuquerque and New Mexico is a microcosm of the general national market; trends are that we have done and will do better than most markets in appreciation. If you would like a free color copy of this report, please contact me at my website at I can email it to you or mail to a postal address.
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