Pending home sales flat in September

Nationwide, home sales for the first time since January did not decline, showing consistency in the housing sector of our economy. In Las Cruces, we felt a bit of a slowdown that has been consistent with the start of the fall buyer season.  One of the biggest factors is sellers holding on to their list prices and not dropping as expected, with inventory up over 40 percent from last year. Currently, we have a little over five months of inventory which, if increased, can officially put Las Cruces in a buyers' market by definition.  As more homes hit the market you can expect to see small reductions in prices in the coming months. 

Interest rates dropped to a 6.1 percent average. its lowest in two years. Additionally, the fed’s mid-September interest-rate cut caused many Americans to realize that mortgage rates have already declined about as low as they are going to for the rest of the year. 

Although the fed’s rate cut may not have brought a surge in buyer activity, the good news is mortgage applications did increase. More homes are available, especially in the first-time buyer price point. While historically buyer activity heads toward a slowdown going into the holiday months, this is an opportunity to find some new incentives, better prices and possibly a small adjustment in interest rates. This is also a great time to keep an eye out for some great homebuying opportunities, especially from new home builds.  It's still a great time to be a Las Cruces homebuyer.