Housing distress took its toll on the average home price in the state during October, giving New Mexico the dubious distinction of being the only state to experience a year-over-year decline, according to real estate data provider CoreLogic.
Single-family home prices dipped by an average of 0.5 percent statewide from October 2012 to October of this year, shows the firm’s Home Price Index released Tuesday. Nationwide, the average home price increased 12.5 percent.
If distressed home sales such as short sales are taken out of the equation, the average home price in New Mexico actually increased 3.1 percent year over year in October. Nationwide, home prices increased by an average of 11 percent if distressed sales are excluded.
The average home price in New Mexico was 20.1 percent below its 2007 peak as of October, compared with an average of 17.3 percent below the peak nationwide, CoreLogic reported. Twenty-three states were within 10 percent of their home price peaks during the month.
New Mexico generally has lagged the pace of housing recovery nationwide. CoreLogic’s index is based on the repeat sales of the same properties over time, an approach that tends to iron out shifts in supply and demand.
The average pace of home price appreciation is shrinking on a month-over-month basis. Nationwide, the average price was up only 0.2 percent in October from September. New Mexico, at a 1.5 percent drop, was one of 28 states to see a small month-over-month decline in October.
“In terms of home price appreciation, the housing market appears to be catching its breath as we head into the final months of 2013,” said Anand Nallathambi, president and CEO of CoreLogic. “The deceleration in month-on-month trends was anticipated as strong gains in home prices over the spring and summer slow in line with normal seasonal patterns and the impact of higher mortgage interest rates.”
Average home prices tend moderate or decline in the winter months as sales slow.