Home New mexico real estate Inflation is not the main reason for rising house prices in Farmington

Inflation is not the main reason for rising house prices in Farmington

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FARMINGTON, NM – Home prices aren’t just on the rise in Albuquerque, the Four Corners have also seen an increase in housing demand and it’s not necessarily because of inflation.

Lynzi Hathcock, associate broker for R1 New Mexico Farmington, has been in real estate for 10 years, but in the last two she’s noticed changes in San Juan County.

“A lot of people from out of state are coming to our community which is great for our economy which has driven prices up a little bit more, Aztec – a lot of people from Durango are moving to Aztec it’s less expensive for them, it’s a short ride, people work from home now, so they can get out of the big city.

Hathcock says in 2020 the average selling price was $207,000 now it’s $256,000, a jump of 22%. And those ads sell out faster than they can replicate.

“We are just diligently looking to find them these homes, today there are currently 116 homes available for sale today, and if we sell 111 like we did in August, that leaves only five homes. extra,” Hathcock said.

If there isn’t enough supply, the idea might be to just build more houses, however, Farmington has a little problem.

“Our area is a bit unique because we have government owned land, you know BLM, BIA, there’s only a limited amount for personal purchase,” Hathcock said.

She added that the city has seen plans for new housing developments, but there are challenges with “investors and developers finding out how expensive it is and how much more expensive it is lately to develop. this ground on the ground, you know the prime ground already used.”

So, for now, buyers need to be aggressive to get this deal done.

“When we find that house, we submit a bid with 10, 15 other bids, so if you want to win that bid, you better be prepared,” Hathcock said.

Hathcock added that they have also seen an increase in cash offers over the past two years, which is not common in the region.