Out-of-state homebuyers drive New Mexico real estate upwards

The New Mexico Association of Realtors said they were seeing this influx firsthand.

“We’ve definitely seen the last couple of years throughout the pandemic last year, especially a lot more out-of-state cash buyers,” Maddox said.

But these out-of-state buyers aren’t always good news. New Mexico realtors say there are only a limited number of homes to visit, and New Mexicans born and raised are often the ones who are forced to pay more.

“It’s because they come from places where housing is more expensive. You know, they sold their house, say for California, and they sold this property for you know, eight or $ 900,000. And they come to Mexico, they can buy a property the same size for about three or $ 400,000, ”Maddox said.

And that drives up the prices for everyone. The New Mexico Realtors Association says the average price of homes here in Albuquerque was $ 336,000 in 2021, a 17% jump from the previous year. It’s even worse in Santa Fe, where the median price exceeded $ 500,000 for the first time last year.

So why not increase the supply to meet the demand?

“The problem we have with building houses is the cost of building a house right now. So, you know, there are a lot of builders who don’t build because they can’t, you know, assess this property well enough to make a profit, ”Maddox said.

His best advice? Sit well for a little while.

“The real estate market is always cyclical. We have our highs, we have our lows. If you can wait now, I would recommend that you wait until you know a bit about the market or these prices start to come down. . “

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