Home prices in New Mexico increased 3.2 percent in September from a year earlier, a hopeful sign of momentum in the residential market that’s being seen across most of the county, real estate data provider CoreLogic reported Tuesday.
The year-over-year increase was the 28th highest among the states. The average increase nationwide was 5 percent, the largest year-over-year increase since July 2006, driven in large parts by dramatic double-digit jumps in sales prices in states like Arizona and Nevada that were hit hard when the housing bubble burst.
“Home prices are responding to better market fundamentals, such as reduced inventories and improved buyer demand,” said Anand Nallathambi, president and CEO of CoreLogic. “We’re seeing clear signs of stabilization and improvement that show promise for a gradual recovery.”
New Mexico was in a minority of states that defied the national trend of a month-over-month decrease in home prices as the summer sales season wound down. September’s 3.2 percent increase improved on the 2.2 increase in August.
Nationwide, the average home price dipped 0.3 percent from August to September, according to CoreLogic’s Home Price Index.
Distressed properties sold in foreclosure or through short sales continue to be a drag on home prices in New Mexico. If distressed properties are excluded from the home-price calculation, the state’s average year-over-year increase improves from 3.2 percent to 5 percent in September.
Nationwide, the average year-over-year increase was unchanged at 5 percent if distressed properties are excluded from the calculation.
Seven states, all east of the Mississippi River, saw home prices drop year over year in September, led by Rhode Island with a 3.5 percent decrease and Illinois with a 2.3 percent decrease.
Home prices nationwide in September, including distressed sales, were running at 27 percent below the peak prices set in April 2006. The largest peak-to-current declines were registered in Nevada at a negative 53.9 percent, Florida at 44.7 percent and Arizona at 41.7 percent.