Older adults are searching for the perfect place to downsize and enjoy retirement. Take into consideration another location that’s emerging in popularity if you want to stay away from the snowbirds in Florida. Most retirees are unfamiliar with New Mexico’s appeal. However, here’s what you should know about the New Mexico real estate market if you’re ready to move.
New Mexico Real Estate Is a Seller’s Market
Currently, New Mexico’s real estate market is a seller’s market, which means that there are more buyers than available homes, leading to quicker sales and higher prices. It’s both a blessing and a challenge.
Homes in desirable areas, such as Albuquerque and Santa Fe, often receive multiple offers shortly after the sellers list them. This rapid pace can be advantageous for those selling their homes, as it increases the likelihood of securing a good price. However, it also means that buyers must act quickly and be ready to make competitive offers.
The scarcity of available properties drives up demand, making it crucial for potential buyers to stay informed about new listings and be ready to move swiftly. Collaborating with a knowledgeable real estate agent who understands the local market’s dynamics can make a significant difference in navigating this competitive environment.
The Growing Median Home Value
The median home value in New Mexico has fluctuated over the past decade. According to Zillow, the median home value in the state in 2010 was around $150,000. Fast forward to 2020, and that figure soared to approximately $225,000.
In 2024, Bankrate states that the median price is $358,800. This upward trend shows no signs of stopping, with home values continuing to rise in the coming years.
The Primary Factors Increasing Real Estate Prices
The price increase doesn’t come out of nowhere. Understanding these driving forces can help buyers make strategic choices.
Economic Growth
Key industries such as oil and gas, aerospace, film production, and tourism have driven job creation and attracted new residents to the state. The demand for housing skyrockets as more people move to New Mexico for employment opportunities.
Increasing Population
The state’s growing population also affects the real estate market. Retirees from other states are drawn to New Mexico’s pleasant climate, low cost of living, and high quality of life.
Improved Infrastructure and Amenities
Upgraded transportation networks, including better roads and expanded public transit systems, increased the convenience of commuting. Newly established healthcare facilities, from hospitals to specialized clinics, boosted jobs and available medical care.
Moreover, the development of recreational areas, including parks, sports complexes, and cultural centers, enriches the quality of life.
The State’s Past Average Mortgage Rate
At the start of the 2010s, mortgage rates were relatively high due to the lingering effects of the financial crisis. Around 2012, rates started to decline sharply, courtesy of the Federal Reserve’s policies aimed at stimulating the economy. Mortgage rates dropped to as low as 3.5%, providing an excellent opportunity for buyers to secure favorable financing.
This trend continued, and by 2020, the initial shock of the COVID-19 pandemic led to rates plummeting even further, reaching historic lows around 2.75% as the Federal Reserve took aggressive action to support the economy.
However, mortgage rates started to climb steadily as the economy began to recover and inflationary pressures mounted. The Federal Reserve’s shift toward monetary tightening to curb rising inflation drove this upward trend. By early 2023, mortgage rates in New Mexico rose to 4.75%.
The Present-Day Mortgage Rate
Bankrate stated that as of July of 2024, a 30-year fixed mortgage APR (annual percentage rate) is 6.88%. With the natural state of inflation and the high housing market demand, mortgage rates substantially increased.
Fortunately, many experts expect mortgage rates in New Mexico to experience moderate fluctuations. Analysts predict that rates may stabilize or slightly decrease if inflation comes under control.
It’s More Affordable To Buy Than To Rent in New Mexico
It’s cheaper for people of all ages to purchase a property in New Mexico rather than to rent. It may seem absurd, but there are a couple of factors that influence this price difference.
Lower Monthly Payments
Mortgage payments are lower than rental costs in many areas. Part of your monthly payment builds equity when you purchase a home, serving as a form of forced savings.
In contrast, renting offers no such benefit. Every payment goes directly to the landlord with no long-term return.
Potential for Appreciation
The rising price trend allows homeowners to build wealth over time. Owning property in an appreciating market is a sound investment, bolstering financial stability and offering potential profits when selling in the future.
Renters don’t benefit from market increases and face rent hikes over time—quickly diminishing their disposable income.
The New Mexico Property Tax Rebate for Older Adults
New Mexico offers a property tax rebate designed for financial relief of adults aged 65 and older. This rebate makes it easier to manage property expenses on a fixed income. Some of the criteria include:
- 65 years of age or older
- A modified gross income below a specified threshold
- Full-time New Mexico residency
- Claiming the property as the applicant’s primary residence
Rebate Benefits
The rebate aims to cover a significant portion of the property taxes to minimize the financial burden for older adults. It frees up resources to cover other essential expenses, such as healthcare, groceries, and utilities. Plus, it helps older adults sustain their independence so they can continue enjoying their homes, hobbies, and more without undue financial stress.
An Emerging City for Retirees in New Mexico
Real estate in New Mexico is incredibly desirable and continuously evolving. Communities are thriving, homeowners are reaping the benefits of their investments, and residents are enjoying their lives in these vibrant neighborhoods.
The final piece of information that you should know about the New Mexico real estate market is that Elephant Butte is one of its top emerging cities. It’s a beautiful place to settle down, revel in your new home, and adore the scenery that surrounds you.
Scenic Beauty
Homes in this city have a stunning view of a championship golf course, the Turtleback Mountains, and the deep blue waters of Elephant Butte Lake. It’s a picturesque environment perfect for relaxation.
Amazing Amenities
The community around Elephant Butte boasts a variety of amenities that cater to both leisure and convenience. The town is home to several parks, including Elephant Butte Lake State Park.
One of the most attractive amenities is the Sierra Del Rio Golf Course. It’s a premier destination for golf enthusiasts, offering a challenging 18-hole layout set against stunning desert vistas. Renowned for its well-maintained fairways and greens, the course also features a clubhouse with dining facilities, providing a complete recreational experience for visitors.
New Construction Opportunities
You’ll find a plethora of available lots for purchase where you can build the perfect home. At Turtleback Mountain Resort, each neighborhood has a designated builder ready to design and construct the house of your dreams. It will complement the naturalistic features of the mountains and desert landscape. You will invest in a property that’s exactly what you want to support your vibrant lifestyle throughout retirement.
