New Mexico Real Estate
New Mexico was not exactly the top state, economically speaking, over the past month, but neither was it at the bottom of the list. Granted, the unemployment rate has been steadily increasing, hitting a rate of 8.7% to 8.8%. However, this is just below the national 
average, placing New Mexico above many other states. For instance, New Mexico has a much brighter view than Nevada, where the unemployment rate has reached an unbelievable 13.6%, or even California, with a very high 12.2% unemployment rate. There have been more layoffs, though, than in most states, with about 1,000 workers losing their jobs over the course of the month. But, on the plus side, this has resulted in an overall decrease in the price for New Mexico foreclosures across the state. Although this is not favorable, it provides an increased opportunity for homeowners-to-be, allowing for the potential for economic growth in the near future.
As the overall price for foreclosures has decreased across the state, the same holds true as well for the cities therein. There were no recorded increases in the pricing of foreclosed homes in any city in New Mexico. Not even Clovis foreclosures exhibited an increase, despite the city’s relatively positive economic changes over the past month.
Some cities have shown a greater change in pricing than others. In Rio Ranche, in particular, the pricing for bank foreclosures has dramatically decreased. Foreclosures for that city have experienced a -25.80% change in pricing from March to April. Las Cruces foreclosures, though still very volatile, showed less than half that change, at -10.75%. Tijeras had less of a decrease in pricing, with a change of only -7.39%. Similarly, Albuquerque foreclosures displayed a net change in price of -6.75%. Foreclosure pricing changed very little in Los Lunas and Clovis, at merely -2.75% and -2.30%, respectively. This decrease in pricing of foreclosures in the past month also indicates that the housing market in general has suffered in a decrease in price.
Despite these rather negative statistics, developments in New Mexico show the early signs of economic recovery in a state that is, overall, below the majority in terms of economic standing. On March 26, information was released regarding the creation of additional jobs in the state, in Albuquerque, more specifically. The New Mexico Economic Development Department (NMEDD) assisted four different companies through its Job Training Incentive Program (JTIP), allowing these companies to create very high-paying jobs, with an average wage of $33.56 per job, making the jobs very desirable, especially to the unemployed portion of the state’s population (approximately 8.7%). Two of the companies involved in this development are SCHOTT Solar PV and SCHOTT Solar CSP, both of which are involved heavily in the solar power industry. With seven new jobs between them, they are not only making a difference in the New Mexico job market; they are also pushing for a heavier reliance on the renewable solar resource, rather than on oil, gasoline, and other nonrenewable fossil fuels. The other two companies involved, Array Technologies, Inc. and Poly-Flow Engineering, LLC, are also involved in the solar industry, with a total of 24 jobs created with this development. A total of $250,555 has been spent on this project. On another note, housing industry experts and analysts have predicted further decline in pricing for the entire housing market, including New Mexico foreclosures. They state that this is due to the vast number of foreclosed homes on the market and the fact that many new buyers look to these cheaper dwellings first. In essence, it is a vicious cycle with no end, at least to the economists, in sight.
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