Evelyn Bruder, Associate Broker, CRS,GRI,ABR
Steinborn & Associates
Real Estate 575-522-3698
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HOMES IN LAS CRUCES, NEW MEXICO
ANALYSIS - 2002 RESIDENTIAL HOMES MARKET
4-YEARS OF MLS STATISTICS Historically homes sales and home prices in Las Cruces have been relatively stable with increases running along with inflation at approximately 2.5% .
Between 1995 and 1998 the Average home prices went from $98K to $112K and the total $-value of Real Estate Sold ranged from $100 Million to $122 Million. This trend continued as shown on the chart (above) until the last two years.
With the general economy and the stock market downturn of the last two years, and the Fed's response to this by decreasing interest rates, the Real Estate Market Nationwide has been the only bright spot. It may be said that the Real Estate Market has been a prime support for the economy and any signs of recovery that the economy has shown are directly related to this.
 Nationwide, money has flowed out of the stock and bond markets and into real estate.
The Law of Supply and Demand is immutable. In Las Cruces the combination of low interest rates and available funds has resulted in two years of unprecedented market activity.
MARKET ACTIV ITY 2001 & 2002
 The number of units sold made a dramatic 15% increase in 2001. Even with the average price of a home increasing only the ususal 2.5% ($118,750K to $121,700) the total $-value of Real Estate Sold increased by $24 Million ( 18%) to $155 Million.
The pressure on the Market continued to increase in 2002 with the number of units sold increasing another 10%, but more importantly, the average price of homes sold increase an unheard of for Las Cruces) 9.2% from $121,700 to $132,900 bringing the total $-value of Real Estate Sold up 20% to an astronomical increase of $31 Million to $187 Million.
NEW HOMES AND RESALES
 Of significant note is that new home construction is NOT the driving force in this change . From 1998 to 2002, New home construction has remained relatively stable between 170 and 180 units per year. Even though the median price of new construction is slightly higher than Residential Re-sales , it is the greater number, greater increase in number and price of re-sales that account for the greatest proportion of these changes.
LAS CRUCES HOME PRICES
 Another interesting phenomena of the last two years is that the absolute number of homes that sold for < $120,000 increased slightly from 678 to 731 (4% annually) between 2000 and 2002. But, these homes decreased from 61% of the market to 52%. At the same time the middle of the market moved to the $120,000'$250,000 range with an increase from 378 units (34% of the sales) to 554 units (40% of the sales). Importantly an upper end (over $250,000) - Estate home market has emerged over these years. Only 54 such homes were sold in 2000 while the number more than doubled in 2002 to 117 homes sold which represents 1 out of every 12 homes sold.
HOMES SOLD VS HOMES FOR SALE
 The number of active listings available for sale is down from 8-900 in previous years to only 519 at the end of the year 2002. Because there are so few listings available , the pressure to 'buy before its gone' has driven the average number of days on the market which is usually 140-50 days down to 132 days ( reducing the average time to sell by 2 weeks), and the rate of new listings cannot keep up with the homes sold. The immutable laws of supply and demand have taken into account the growth of the upper end market. You will note that there is over 1year supply of homes over $225,000 available, but only 6 months supply of homes at $200,000, 4 months supply of homes between $120'200,000, and only 2 '3 months supply of homes in the under $120,000 (representing 50% of the market).
MARKET SHARE REPORT
THE LAS CRUCES MARKET LEADER
During 2002 Steinborn Inc Realtors, GMAC helped 454 clients list and sell their homes and 422 clients buy the home of their dreams. This is twice as many clients served as any other Real Estate Company in Las Cruces. We are proud to have particpated in 1/3 of all buying and selling transactions. I am proud to be a part of this great company, and I am proud to be included among the Top 10 Listing and Selling Agents in Las Cruces. 5 of the top 10 Agents are Steinborn GMAC Agents. No other company has more than one agent in the top 10.
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