Construction across NM slows

New Mexico is no exception as home sale prices and new home construction decline across most of the nation. Core Logic, an international data collection firm, reported home sales prices in New Mexico dropped 7.47% in September, compared to September of 2009 - the fifth biggest drop among the 50 states. But the Greater Albuquerque Association of Realtors said October numbers show prices stabilizing, not plunging. "Average prices stabilized, median prices stabilized," said association vice president Janice McCrary. "The number of units that we sold in October was very similar to what we sold in September. Those are all good signs in this market." McCrary said the decline in home prices over the past couple of years was inevitable, after years of increases. " We have lost equity, but how much of that was inflated equity? We saw home prices rise above what could be afforded in New Mexico, higher than our salaries were going up," said McCrary. "So some of that has been diminished now, some of that has gone away." Meanwhile the U.S. Department of Commerce reported new home construction fell sharply in October, a drop of 11.7% compared to last year at this time. Jim Folkman of the Homebuilders Association of Central New Mexico said industry-watchers have been tracking 7 year up-and-down cycles since 1959, when national record-keeping on construction rates began. He said the pattern broke when a 13 year upswing started in 1992, followed by the current plunge, and he said the industry may stay near the bottom for a longer period,too.

Channel: ClipSyndicate Video Length: 0s Date Found: Wed, Nov 17 2010 10:39 PM Category: News Date Produced: Wed, Nov 17 2010 8:07 PM View Count: 0