New Mexico Business Weekly by Steve Ginsberg, Reporter
Date: Thursday, October 18, 2012, 4:51pm MDT
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Home sales statewide showed a 20 percent increase in September, according to the Realtors Association of New Mexico, which reported 1,333 closed sales.
For the third quarter, there were 4,193 sales, compared to 3,584 in the third quarter of 2011.
“Distressed properties are still affecting the median price of all homes sold,” said Debbie Rogers, president of RANM, in a news release. “The good news is, the drop in median from the previous reporting period is less each report, indicating market prices are slowly stabilizing.”
September’s median price stands at $170,000, unchanged from September 2011. In September 2010, the median was $180,000.
“While the New Mexico market is seeing a light at the end of the tunnel, appraisals are still creating issues in the state and nationwide,” Steven Anaya, RANM CEO, said in the news release.
A survey by the National Association of Realtors found that 65 percent of real estate agents surveyed in September report no contract problems related to home appraisals over the past three months, Anaya said.
Eleven percent said a contract was canceled because an appraised value came in below the price negotiated between the buyer and seller, with 9 percent reporting a contract delayed and 15 percent saying a contract was renegotiated to a lower sales price as a result of a low valuation.
“Though the real estate recovery is taking place, the combined issues of stringent mortgage lending requirements and appraisal frictions are hampering otherwise qualified buyers from purchasing a home in a timely fashion, and in some cases are preventing them from buying at all,” NAR Chief Economist Lawrence Yun said.