Hi, I’m Kayla Fikany with Z Real Estate. Welcome to the first half of 2020 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 see how the market is performing. What a wild ride the first 6 months of this year has been! Would it shock you how outstanding the real estate market in Las Cruces is doing? It certainly shocks me, considering what has happened with COVID-19 and how it has affected everything around us. Year over year, the number of homes sold has decreased by 34 homes from 1,077 to 1,043. However, the average sales price has increased by $18,000, making the average sales price just under $225,000. Even though the number of homes sold is down, the average sales price is significantly up, almost 10%.
The luxury market, which we define as homes that sell for $400,000 and up, is also up by 17 homes which equals 40%! That’s a huge increase, bringing the total to 59 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.
Record low interest rates continue to bring buyers into the market. Some of the unrest in the bigger metropolitan areas is pushing people into moving or retiring early to communities like Las Cruces. Low inventory has pushed prices upward with multiple offer situations and made for a very competitive market place.
Talking about low inventory, we started out January of 2019 with just over 700 active homes on the market. As of the end of June of 2020, there were just over 400 active homes. In an 18 month period, that is a 41% decrease in available inventory, or homes to purchase!
Hopefully this gives you a good insight into how the rest of the year may play out for real estate.