Evelyn Bruder, Associate Broker, CRS,GRI,ABR
Steinborn & Associates
Real Estate 575-522-3698
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HOMES IN LAS CRUCES, NEW MEXICO
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2003 HOME PRICES
This analysis of home prices focuses on the cost of residental homes during the year 2003. We have evaluated the number of homes sold in each price range and the price per square foot of those home. In addition, we looked at the average and median price of homes and the price per square foot of homes by area of the city. This will allow us to get a more accurate picture of home prices.
 In this graph of the number of homes sold in each price range, the first thing we notice is that since 2000 - where the bulk of the market was under $120,000(green line),the market for homes sold in 2002 and 2003 has shifted so that fewer homes are selling for less than $120,000 and the bulk of the market is now between $120,000 -$250,000 and more homes than ever are selling at over $250,000.
 These pie charts demonstate the change more dramatically. In Las Cruces in 2001 61% of all the homes sold were under $119,999. By 2003 only 44% were under $120,000.
2002 and 2003 saw signifigant changes not only in the low end of the market, but even more dramatically in the mid, and high ends of the market.
There was an expansion of the upper end market with an almost doubling from 4.9% sold in 2001 to 9% of the homes sold in 2003 being over $250,000.
The bulk of the market by 2003 was now the $120-250,000 range.
Las Cruces homes sold in a great number of neighborhoods. This list represents the most frequently sold areas.
Looking at the Tables BELOW, the first thing we notice is something we would expect: the price of a house varies dramatically by neighborhood with average prices varying from $92,102 at $60.60/Sf in the Alameda area to $263,800 at $119/sf in the Sonoma Ranch area.
An analysis of this neighborhood data and separating out new vs. resale home prices and price per square foot will give us a good idea of what changes have occured in the market in the last 2 years.
 Looking at the number of homes sold in select neighborhoods we note:1. The number of homes sold in Telshor,Foothills in the last 3 years has remained relatively stable. These are mature areas and I can tell you that there has been relatively no new construction in these areas so that analysis is strictly turnover/resales.
2. Looking at the opposite end of the spectrum, areas of high growth and new construction, we find:
A...Jornada/Las Colinas - 51% increase in homes sold - 42% sales were new construction
B...Picacho Hills - had a 44% increase in homes sold with 77% of all sales being new construction
C...Sonoma Ranch - had a spectacular 118% increase in homes sold with 88% of all sales being new construction.
3...A third category exists in which a moderate amount of growth occured in both the number of homes sold and the number of new homes sold.
A...Country Club area had a 31% increase in home sales with 13% bein new homes.
B... Elks club had an 8% increase in homes sold with 27% being new construction.Areas like these have homes of all ages and sizes with pockets of new construction and analysis of areas like this have to be further divided up to be analyzed. For the purpose of this discussion we will not attempt that.
Analysis by Group. In Group 1. Telshor and Foothills where we are dealing with Resale homes only we find that the price per SF (a base for valuation/pricing) in Telshor $/SF increased 9.5% from $69.80 to $76.40 and in Foothills prices increased 7% from $88.27 to $94.00. As a matter of fact we found this to be a relatively consistent in virtually all neighborhoods. We also found the Average and Median Price of homes overall had an increase froom 2002 to 2003 of 8-9%. We must assume this to be the MARKET change.
If we now look at Group 2.(Jornada/Las Colinas, Picacho, & Sonoma) which represents areas of rapid growth in the total number of homes sold and in the number of new homes sold we find some interesting differences by neighborhood.
In Jornada/Las Colinas there were 131 homes sold in 2003 an increase of 50% over the 87 homes sold in 2002. But in this neighborhood new construction sold for $88/SF, not much different from the $79/SF of Resales, becuase the new homes being built were in the same relative price range as the resales. More over the average of both prices/SF and average home price rose 8.1% and 6.8% respectively consistent with what we said about the market in general.
Picacho Hills had 62 sales in 2003, a 77% increase over the 35 sold in 2002. Of the 62, 27 were new construction at an average price of $121/SF while 35 were resales at an average price of $90/SF. The overall average change in price/sf from 2002 ($94) to 2003 ($102.50) was our market rate of 9%. In both of these growth areas the market forces prevailed.
Sonoma Ranch is new and growing area with all the homes being "new." A different picture is to be expected. Home sales increased 118% from 44 in 2002 to 96 in 2003. Of the 96 sales in 2003 84 (87.5%)were new construction as we would expect. Also there was no real change from 2002 to 2003 in the Price/SF ($119)or the Average Price of homes sold ($237,981) because in this area 2003 was just a continuation of the growth of 2002.
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