Glenn Ward

Alamogordo, New Mexico Real Estate Market Report

As I travel around the city of Alamogordo I am often asked about the current market conditions for Real Estate. This seems to be a concern for a lot of people so I decided to write a market report. I am sure you heard about the housing bubble, the buyers that owe more than their home is worth, and about all the foreclosures. While these conditions are the norm for most of the nation there has not been a substantial decline in home values in Alamogordo, New Mexico.

Alamogordo is a small city of about 35,000 in southern New Mexico. We have a very good climate that most people see as not too hot in the summer and not too cold in the winter. We do not have tornadoes, hurricanes, mud slides, and other natural disasters that plague many other cities. We are considered by many to be just the right size of city for a person to live in. We are known as a very friendly city. Alamogordo is centrally located to many places of interest. The mountain communities of High Rolls and Cloudcroft are only one half hour away. Ruidoso with skiing, horse racing and casinos is only one hour away. Las Cruces New Mexico and El Paso, Texas are only about an hour away. Albuquerque, New Mexico is about a three hour drive. For these reasons Alamogordo has attracted a lot of retirement people. Alamogordo has Holloman Air Force Base near by and that has brought many military people to the area and many retire here after completing their service. For these reasons Alamogordo has not had the downturn in the real estate market that most of the nation has experienced.

Now some Alamogordo, New Mexico Real Estate Market Report facts. As you can see from Chart 1 the number of homes sold were increasing in the Alamogordo and La Luz areas up until 2005 with a slight decrease in 2006. As the economy took a downturn in 2007, 2008, and 2009 the number of homes sold was down somewhat. The increase in 2010 was due to the income tax rebates offered by the federal government to first time home buyers and later included existing home buyers. When these tax rebates ended then sales dropped back. Chart 2 shows the number of homes sold for the first three and a half months of 2008 through 2011. Again it is clear that the number of homes sold was dropping down until 2010 when the tax rebates were being offered. The sales for the first three and a half months or 2011 is almost identical to the sales of 2009 which indicates that sales have leveled off. Lenders have made it more difficult for buyers to purchase a home because of larger down payment requirements and higher credit score requirements.

Chart 1 Total Number of Homes Sold Chart 2 First Quarter Home Sales

Chart 3 shows the total number of dollars spent for the years 2003 through 2010. The dollars spent to purchase the homes was almost the same for all 2008, 2009, and 2010. Even though the number of homes sold is less in 2009 and slightly less in 2010 the total cost for these homes is about the same. This indicates that the homes in the Alamogordo area have retained their value and in some cases increased even with fewer sales.

Chart 3 Total Home Sales in Dollars

The rental market is more difficult to track because rentals are not reported to the Multiple Listing Service (MLS). Each real estate office keeps their own records. It is well known that rental properties are in big demand in Alamogordo because part of the mission at Holloman Air Force Base is Training. These personnel are not stationed at Holloman AFB long enough to make it economical to purchasing a home. Also there are a large number of German Air Force personal's training at Holloman. The large majority of these people, even though they may be at Holloman for three or more years, have not established credit in this country so they also rent. A large number of investors purchase homes that they use as rental properties for the military.

To summarize the Alamogordo, New Mexico Real Estate Market Report the number of homes sold in the Alamogordo and La Luz areas have dropped down somewhat because of the downturn in the economy. This downturn is not as large as in many other areas of the country. Homes in Alamogordo have not lost value as in other areas of the country. Low interest rates still make a home purchase a very attractive investment. The large military presence in the area and the large number of retirees have stabilized market conditions. If you need further information feel free to contact me at gward@zianet.com or check our our website: www.GlennandDianWard.com.

New Mexico Mortgage Finance Authority First Time Home Buyer Program

You may not be aware that the New Mexico Mortgage Finance Authority First Time Home Buyer Program exists to help low and moderate income residents of New Mexico with financial assistance so that they can purchase a home. Actually there are several different programs that help with loans that you may not need to repay, special interest rates, a second mortgage program at 0% interest rate and does not require a monthly payment. These programs are available at selected lenders in the Alamogordo/Otero County area and in other areas of the state of New Mexico.

First there is some confusion as to what a first time home buyer is. The Mortgage Finance Authority defines a first time home buyer as anyone that has not owned a home for the past three years. This includes a mobile home that is on a permanent foundation. If you have lived in a mobile home that is not on a permanent foundation for the past three years you are considered to be a first time home buyer. The Mortgage Finance Authority considers all veterans a first time home buyer.

There are some limits and some requirements in order to qualify for one of the New Mexico Mortgage Finance Authority First Time Home Buyer Programs. In the Alamogordo/Otero County area a one or two person family can not make more than $52,700. and if the family is three or more the family can not make more than $60,605. The value of the home purchased can not exceed $244,000.. These numbers vary throughout the state. The person must bring a minimum of $500 of their own money to the transaction. Your credit rating does not have to be perfect but it must be 620 or better.

You might want to know how to get started with the New Mexico Mortgage Finance Authority First Time Home Buyer Program. First you should check with one of the Mortgage Finance Authority approved lenders to see if you qualify for one of the programs. Next you should check with a Realtor® to help you find a home. Some people are hesitant to check with a Realtor® because they think there will be a fee. There should be no fee for having a Realtor® help you find and purchase a home. If you have questions feel free to email me at Glenn@GlennandDianWard.com or you can get help on line at www.housingnm.org.

If this information has sparked your interest I urge you to act soon. The funds available for these programs are not always available. There are periods where the funds run out and you will have to wait for new funds to become available.

Glenn Ward

www.GlennandDianWard.com

Realtor/Associate Broker

Affinity Real Estate, LLC (575-434-9700)

Alamogordo, NM 88310