Welcome to the first half of 2019 Las Cruces real estate report. In this video, we’ll take a quick look at the numbers for the year so far, and we’ll also compare them to last year’s numbers to get a bigger-picture view of how the market is performing. Six months gives us a good enough sample size to determine trends and forecast things to come.
The first half of 2019 showed a continued strong real estate market coming off of a record setting 2018. Now our market is not unsustainable in fact we see the market continuing to perform well through the end of the year. Year over year transactions are basically flat having increased by 4 homes sold from 1,073 to 1,077. Likewise, the average home price has increased by just shy of $4,000 over 2018.
The luxury market, which we define as homes that sell for $400,000 and up, is down by 13 homes, or about 24%, to 42 homes sold in this six-month period. This segment of the market really depends on buyers coming from other parts of the country more so than the market under $400K. This will be important to watch over the next 6 months. This could be a sign that our luxury market could slow as it has in other parts of the US. We rely on people moving from elsewhere bringing their equity. If other markets tighten expect the Las Cruces Luxury market to tighten too.
Overall the market is strong for sellers. They are not going to be able to price above market and sell but they are certainly in the driver’s seat in the majority of the Las Cruces Market. Buyers are still taking advantage of great interest rates and are still buying. Opportunities under $200,000 are tighter than they have ever been so buyers must be ready to move quickly when the right home comes on the market. Buyers of luxury homes may find opportunities if the number of luxury homes continues to slow in the last half of 2019.