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Land of Enchantment.

Home Mortgage Rates in New Mexico

Aerial View of Albuquerque, New Mexico From the Sandia Mountains.

New Mexico is located in the southwest United States, and it has a population of over two million people. It ranks as the thirty-sixth most populous state in the nation, as well as the fifth largest by land area. The state is divided by climates, and the northern and eastern portions of the state experience a colder more alpine climate while the southern and western portions of the state experience a warmer, more arid climate. Oil drilling, farming, ranching, retail, trade, and mineral extraction make up and support the state's economy.

The local living in this state varies from region to region, and you have several thriving cities to choose from. You can live in a more laid-back and rural real, or you can live in one of the several large cities that are found throughout the state. No matter where you choose to live, the cost of living is below the national average, and the diverse economy gives New Mexico's inhabitants a lot to choose from.

People move to New Mexico for the thriving economy and the huge dedication to the arts. The lower cost of living and the very low tax rates are also a big draw for people. There are several excellent secondary education opportunities that draw a younger generation to the state as well. The state is also very culturally diverse, and there is an abundance of types of homes and jobs to choose from. All of these factors make New Mexico a place where people want to travel or move to.

However, many people are leaving New Mexico at a rapid pace as well. The economy is stagnant for the middle-aged demographic, and there isn't a lot of opportunities to advance to higher-paying positions. This results in people leaving the state to find work opportunities that offer them faster advancement. Additionally, many in the workforce are nearing retirement age and phasing out, and this contributes to the stagnant economy New Mexico seems to be experiencing.

Young college-aged people find New Mexico attractive because there are many opportunities to get advanced degrees from one of the many universities and colleges located throughout the state. Also, people who are nearing retirement age are finding New Mexico attractive because of year-round sunshine, the lower cost of living, and the lower property taxes as a whole.

Current Real Estate Trends in New Mexico

New Mexico didn't fare very well during the housing market crash, and it is still recovering. When 2008 came, New Mexico's housing market saw its, first, last, and the only peak before it began falling. From the third to the fourth quarter of 2008, New Mexico's housing market plateaued before it rose sharply at the start of 2009. From that peak, it began to fall once again until the second quarter of 2010. When this time came, the housing market saw a slight reduction in the pace it was falling, and this continued until the third quarter of 2010 when the housing market rose slightly. However, it resumed its fall quickly, and in 2011 the market saw another slight plateau. This dropped in the second quarter of 2012 when the housing market finally hit its lowest peak.

Unlike the majority of the United States, the New Mexico housing market hasn't rebounded quickly. From the time it hit bottom in 2011 until 2014 it stayed very low. The beginning of 2014 finally saw the market beginning to climb slightly, and 2015 saw a slight peak that dropped off quickly. The market resumed its steady climb after the 2015 peak, and it has continued on this path to the present. However, the New Mexico real estate market is still nowhere near where it was before the market fell in 2008.

The city of Albuquerque had a similar ride with the housing market crash. In 2007, the housing market slowed down as it had been on a quick rise before this year. The market continued to rise slowly until it hit its peak in 2008. Once it hit this peak, it dropped significantly until the fourth quarter of 2008 when the market experienced another sharp peak. It experienced a rocky drop from 2009 on, with several small peaks at the end of 2010. In 2011, the market hit a plateau that lasted until the start of 2012, when the market dropped for one final time before it hit bottom.

Sine Albuquerque hit bottom in 2012; it hasn't experienced a quick recovery like many states in the United States. The market stayed moderately low like the entire state of New Mexico did until the start of 2014. The start of 2014 saw the real estate market beginning to pick up slightly, and this continued until it hit a plateau from the middle of 2016 until the start of 2017. As of the start of 2017, the market has begun to climb again, but it still isn't where it was before the housing market crash, it's right below the pre-2008 prices.

Historical Real Estate Market Trends in New Mexico

The early 1990s brought about the start of a steady climb for the New Mexico real estate market. There was a slight peak in 1992, and the market began a slightly steeper climb in the start of 1993. This climb continued without any large fluctuations except a slight drop in 1995 until the middle of 1996. In 1996, the real estate market slowed down and started a more gradual climb that continued until it hit a slight peak in 1998. This peak leveled off until 2000 when it started a rapid climb.

From 2000 to 2005, the New Mexico real estate market saw it continue to climb at a largely uninterrupted pace. The start of 2005 saw the beginning of a steep and rapid jump in the real estate market, and it continued to increase until the first quarter of 2007. In 2007, the market hit a slight plateau, and it stayed on this plateau until it hit its final peak in 2008 and started falling as the housing market crashed.

Homeownership across the state has fluctuated widely with the broader economy. Ownership stood at 68% in 1984, fell to 65.4% in 1988, rose to 70.5% in 1992, and fell to 66.8% in 1994. Ownership boomed with the broader nationwide economy in the late 1990s with ownership peaking out at 73.7% in 2000. After the technology-led recession, ownership fell to 70% in 2002.  During the housing bubble ownership peaked out at 72% in 2006 before sliding to a low of 66.3% in 2014. As of 2016 ownership stood at 67.4%, which is about 4% above the national average.

Places to Live

Albuquerque Skyline.

Metropolitan Areas

NM Rank US Rank Metropolitan Area 2016 Pop 2010 Pop Change % △
1 60 Albuquerque 909,906 887,077 22,829 2.57%
2 209 Las Cruces 214,207 209,233 4,974 2.38%
3 285 Santa Fe 148,651 144,170 4,481 3.11%
4 350 Farmington 115,079 130,044 -14,965 -11.51%
5 465 Gallup 74,923 71,492 3,431 4.80%
6 481 Hobbs 69,749 64,727 5,022 7.76%
7 498 Alamogordo 65,410 63,797 1,613 2.53%
8 499 Roswell 65,282 65,645 -363 -0.55%
9 542 Carlsbad-Artesia 57,621 53,829 3,792 7.04%
10 593 Clovis 50,280 48,376 1,904 3.94%
11 696 Española 40,040 40,246 -206 -0.51%
12 786 Taos 33,065 32,937 128 0.39%
13 831 Silver City 28,280 29,514 -1,234 -4.18%
14 837 Las Vegas 27,760 29,393 -1,633 -5.56%
15 840 Grants 27,487 27,213 274 1.01%
16 869 Deming 24,450 25,095 -645 -2.57%
17 908 Ruidoso 19,429 20,497 -1,068 -5.21%
18 910 Portales 19,082 19,846 -764 -3.85%
19 913 Los Alamos 18,147 17,950 197 1.10%

Popular Cities in New Mexico

New Mexico is home to several cities that enjoy thriving art and music scene, several nationalities, cultures, and languages, as well as many top-ranked educational opportunities.

New Mexico's most popular cities are places where there are more opportunities for employment. As most of New Mexico's population still resides in rural areas, New Mexico's most popular cities are places whose job bases are the most stable. As a result, Albuquerque, Las Cruces, Rio Rancho and Santa Fe have bigger populations than other New Mexico cities because they have more stable job bases. These cities also enjoy a higher quality of life than other cities in New Mexico because they are cleaner, well-organized and offer better schools than other New Mexico cities. Median home values in New Mexico vary considerably by city.

Albuquerque

Downtown Albuquerque, New Mexico.

The largest city in the state of New Mexico is Albuquerque with a population of 559,277 people as of 2016. This population makes Albuquerque the thirty-second largest city in the United States. This city is part of the larger Albuquerque Metro area, and the combined population of this Metro is 909,906. The Albuquerque Metro area is the sixtieth-largest in the nation. Albuquerque is home to several top-ranked universities, historical landmarks, tourist attractions, museums, and parks.

The local economy is supported by several large companies and company headquarters. The tech industry is very large in this city, and this city lies in the center of the New Mexico Technology Corridor. There are also several solar energy companies located in this city, and it has been ranked as one of the best cities in the nation for new businesses. It has also been ranked as one of the best cities for jobs throughout the 2000s. The education sector is very influential, and thousands of college-aged people come here every year.

There are many art and cultural events that take place year-round all over the state, and Albuquerque alone is home to over 300 festivals, events, and shows. The New Mexico Arts and Craft Fair is an exclusive non-profit event that takes place every year. Visitors can visit the Museum of Natural History and Science or the Albuquerque International Balloon Fiesta as well. Finally, tourists and residents alike also like to visit the KiMo Theater and take in one of their many performances.

The largest public flagship university in the state is located in Albuquerque, and the University of New Mexico has over 27,000 students enrolled. There are also several non-profit and private universities in the city including the Southwest University of Visual Arts and the University of St. Francis. Finally, Albuquerque Public Schools serves this city, and it is one of the largest public school systems in the nation with almost 100,000 children currently enrolled.

The largest employer in the city is the government sector with Kirtland Air Force Base and over 35,000 people employed. The second-largest employer in the city is education-based and it is the University of New Mexico with 14,400 staff members. Finally, Albuquerque Public Schools is the city's third-largest employer and it has over 14,000 staff members employed year round.

The economy is at a standstill currently. The unemployment rate is higher than the national average, and there has only been very little job growth reported in the last year. However, the economy may be on track to improving as over the next ten years it is projected that job availability will grow by over 30%.

The local median house price for Albuquerque is currently around $185,300 with a price per square foot of $142. These numbers have risen by 4.3% over the past year, and they're projected to rise another 3.3% in the coming year. The Albuquerque Metro has a local median home price of $215,000 and a price per square foot of $134.

Las Cruces

Aerial View of Las Cruces, New Mexico.

The second-largest city in New Mexico is Las Cruces, and this city is better known as “The City of Crosses.” As of 2016, it had a population of 101,759 people, and it is part of the larger Las Cruces Metro area that has a combined population of 214,207. Las Cruces serves several important purposes to the state of New Mexico, and it is the economic and geographic center of the Mesilla Valley region. It is also known as the agricultural region for the Rio Grande floodplain.

The economy in this city is supported by several large sectors with education, manufacturing, government, and healthcare making up the four largest economic contributors. This diverse economy means that people come to this city with a very good chance of finding jobs, and there are several very different ones to choose from.

The climate in and around this city is arid with very windy conditions year round. The summer months are hot and dry with temperatures staying up in the 90s from June through September. The winter months alternate between cold and windy to sunny, and temperatures stay around the mid-30s from December through March. Additionally, it is rare to see snow in this city, and most of the moisture the area experiences in the winter months comes from rainfall and an occasional light frost.

There are several art and cultural events held in Las Cruces, and most of them are held later in the year. The Renaissance ArtsFaire is held every year, and this festival celebrates craftsmanship, music, and features several workshops led by local artists. One of the larger events this city hosts is held every September, and the La Gran Fiesta attracts thousands of people to celebrate the food and culture of the city. You can also visit the New Mexico Farm and Ranch Heritage Museum which celebrates the history of farming and ranching.

The Las Cruces Public School District serves the city and the surrounding area and it has 26 elementary schools, nine middle schools, and six high schools. Students can also attend several universities or community colleges in the area as well. The New Mexico State University is located here along with The Burrell College of Osteopathic Medicine. If you want to attend a community college, the Doña Ana Community College is available.

Two of the three largest employers in the city come from the education sector, and the largest employer in the city is the New Mexico State University with over 3,500 staff members. The second-largest employer in Las Cruces is the Las Cruces Public School District and it has over 3,200 employees. Finally, the third-largest employer comes from the healthcare sector and LifePoint Health currently has 1,300 staff members.

The local economy in Las Cruces isn't doing very well despite that fact that there are several large employers in the city. The current unemployment rate is above the national average by almost 2%, and there hasn't been any job growth. The number of available jobs has fallen in the past year. However, over the next ten years, the local economy may get a boost, and it looks to add over 30% more jobs into the economy.

The local median home price for Las Cruces is $145,700, and this works out to around $109 per square foot. These prices have increased 5% in the past year, and they're on track to increase another 4.6% in the coming year. The local median home price for the Las Cruces Metro area is $199,000 with an average price per square foot of $111. Las Cruces’ lower-than average median home value demonstrates that smaller New Mexico cities with lower yearly median incomes tend to have median home values that are lower than the national median price.

Rio Rancho

Hot Air Balloons Flying Over Rio Rancho, New Mexico.

Rio Rancho is currently the third-largest city in the state, and it is also one of the state's fastest growing city as it offers residents low taxes, low crime rates and affordable land to build homes. As of 2016, Rio Rancho had a population of 96,028, and it is part of the greater Albuquerque Metro. The combined population of Rio Rancho and the Metro area is 909,906. This city acts as an important economic hub for Sandoval County. It is working to become independent from the Albuquerque Metro, and it has established its own library and school system.

The economy in Rio Rancho is very diverse with several large corporations making their headquarters here. The government, retail, services, and fabrication industry are all important economic cornerstones in supporting the economy. Additionally, this city is home to several call centers, and there are plans in place to continue to expand into other sectors.

Rio Rancho also has an arid climate that is classified by hot and humid summers and cool, windy winters. June through September are the hottest months on average, and the temperatures typically stay in the upper-90s. The fall brings windy and wet weather that fades into the winter months. December through February are usually the coldest months in this city with temperatures ranging in the mid-50s.

This city is home to several outdoor recreational spots and parks for the residents and tourists to enjoy. The Petroglyph National Monument is an archeological site that contains several pieces of historic art and cave paintings. There is also a Pueblo village that visitors can tour, along with the J&R Vintage Automobile Museum.

This city does not have any large universities or campuses, but the Rio Rancho Public School District serves the area with several elementary, middle, and high schools. There is also an alternative school. Students can choose to attend the National American University.

The largest employer in the city is the Intel Corporation with over 3,000 employees. The second-largest employer in Rio Rancho is the Rio Rancho Public School District and it has over 1,900 employees. Finally, the third-largest employer in the city is Hewlett-Packard with over 1,500 employees.

In spite of the several notable employers that are based in Rio Rancho, the unemployment rate is still higher than the national average. The city did see job growth in the past year, but it was less an 1% of an improvement. However, over the next ten years, the city is looking to add up to 33% more jobs, so this may help to lower the current unemployment rate.

The current local median home price in Rio Rancho is around $165,600, and the price per square foot is $112. Both of these prices have seen increases over the past year of 6.2% with a projected increase of 3.2% in the coming year. The Albuquerque Metro has a local median home price of $215,000 and a price per square foot of $134.

Santa Fe

Cathedral Basilica of St Francis of Assisi in Santa Fe, New Mexico.

The fourth-largest city in New Mexico and the state's capital is the city of Santa Fe with a population of 83,875 people as of 2016. This city is part of the larger Santa Fe Metro area, and the combined population as of 2016 was 148,651 people. Santa Fe was founded in 1610, and this makes it the oldest city in New Mexico and the oldest state capital city in the nation. When it was founded, Santa Fe's full name was “La Villa Real de la Santa Fe de San Francisco de Asís” which means “The Royal City of the Holy Faith of Saint Francis of Assisi.”

The local economy relies heavily on the tourism industry. It also has major contributions from the science and technology industry, the education industry, the healthcare industry, and the manufacturing industry. These varied sectors make for a unique economy with many different job opportunities available.

The city has a dry steppe climate that is classified by hot, humid summers with little rainfall and dry, chilly winter months. June through August typically has the hottest temperatures that stay up in the mid-80s, and the winter months run from November through March with temperatures in the mid-30s. Residents can expect between six and eight snowfalls each year, and July through August brings heavy rainfall.

Santa Fe is a well-known center for cultural events and a huge art supporter. One of the biggest draws for art lovers, collectors, and tourists is the infamous Canyon Road. Here you'll find the largest collection of art galleries in the city. You can also take in a performance from the oldest presenting organization in the city, Performance Santa Fe. Finally, tourists and residents can visit the Museum of International Folk Art and view art from around the world.

The city has three public high schools that operate under the Santa Fe Public School District. There are also three private liberal arts colleges students can attend around the city. The Santa Fe University of Art and Design and Southwestern College are both located here. In addition, the New Mexico School for the Deaf serves over 500 students.

The State of New Mexico is the largest employer in the city with over 19,000 year-round employees. The second-largest employer is the Los Alamos National Laboratory, and they have over 10,500 staff members. Finally, the third-largest employer is education based and the Santa Fe Public School District has over 1,700 staff members.

The local economy is doing very well, and it currently has an unemployment rate that is below the national average. It also has recent job growth in the past year, and this trend is looking to continue into the next decade with a projected growth of over 35%.

The median local home price for Santa Fe is around $321,500 with an average price per square foot of $243. These prices have risen 3.4% over the past year, and they're projected to rise at least another 2.5% in the coming year. The Santa Fe Metro area has a local median home price of $499,000 and a price per square foot of $234.

New Mexico Census Data

According to the United States Census an estimated 1,334,795 people live in the state of New Mexico. The state has 121,298.15 mi² of land area, which gave it a population density of 11.0 per mi². Here is a list of cities, towns, villages & Census Designated Places with more than 500 residents, with their estimated population as of June 2016 & the 2010 United States Census. For Census Designated Places (CDP) where there was no population estimate available for 2016 the 2011-2015 American Community Survey 5-Year Estimates data was used.

All table columns are sortable. Click on the column headers to sort by that column. Click again to sort low to high. Cities with higher levels of population growth typically see the increased demand drive faster real estate price appreciation.

Rank Geography 2016 Pop 2010 Pop Change % △ County Land mi² Pop Den mi²
1 Albuquerque 559,277 545,852 13,425 2.46% Bernalillo 187.73 2,979.16
2 Las Cruces 101,759 97,618 4,141 4.24% Doña Ana 76.49 1,330.36
3 Rio Rancho 96,028 87,521 8,507 9.72% Sandoval & Bernalillo 103.35 929.15
4 Santa Fe 83,875 67,947 15,928 23.44% Santa Fe 45.98 1,824.16
5 Roswell 48,184 48,366 -182 -0.38% Chaves 29.86 1,613.66
South Valley CDP 41,660 40,976 684 1.67% Bernalillo 28.8 1,446.53
6 Farmington 41,629 45,877 -4,248 -9.26% San Juan 31.51 1,321.14
7 Clovis 39,373 37,775 1,598 4.23% Curry 22.71 1,733.73
8 Hobbs 38,143 34,122 4,021 11.78% Lea 23.96 1,591.94
9 Alamogordo 31,283 30,403 880 2.89% Otero 21.43 1,459.78
10 Carlsbad 28,914 26,138 2,776 10.62% Eddy 28.94 999.10
11 Gallup 22,670 21,678 992 4.58% McKinley 18.91 1,198.84
12 Sunland Park 16,544 14,106 2,438 17.28% Doña Ana 11.4 1,451.23
13 Los Lunas 15,454 14,835 619 4.17% Valencia 14.63 1,056.32
14 Deming 14,488 14,855 -367 -2.47% Luna 16.24 892.12
Chaparral CDP 13,629 14,631 -1,002 -6.85% Otero & Doña Ana 59.23 230.10
15 Las Vegas 13,285 13,753 -468 -3.40% San Miguel 7.59 1,750.33
16 Artesia 12,232 11,301 931 8.24% Eddy 9.92 1,233.06
17 Portales 11,989 12,280 -291 -2.37% Roosevelt 7.06 1,698.16
Los Alamos CDP 11,815 12,019 -204 -1.70% Los Alamos 11.14 1,060.59
18 Lovington 11,399 11,009 390 3.54% Lea 4.74 2,404.85
North Valley CDP 11,221 11,333 -112 -0.99% Bernalillo 7.01 1,600.71
19 Española 10,138 10,224 -86 -0.84% Rio Arriba & Sante Fe 7.85 1,291.46
20 Silver City 9,907 10,315 -408 -3.96% Grant 10.13 977.99
Zuni Pueblo CDP 9,494 6,302 3,192 50.65% McKinley 8.85 1,072.77
21 Anthony 9,330 9,360 -30 -0.32% Doña Ana 3.96 2,356.06
22 Grants 9,298 9,182 116 1.26% Cibola 14.86 625.71
23 Bernalillo 9,202 8,320 882 10.60% Sandoval 4.78 1,925.10
24 Socorro 8,612 9,051 -439 -4.85% Socorro 14.39 598.47
25 Corrales 8,586 8,329 257 3.09% Sandoval 10.53 815.38
Shiprock CDP 8,496 8,295 201 2.42% San Juan 13.44 632.14
26 Ruidoso 7,770 8,029 -259 -3.23% Lincoln 16.12 482.01
27 Belen 7,122 7,269 -147 -2.02% Valencia 8.29 859.11
28 Bloomfield 7,090 8,112 -1,022 -12.60% San Juan 7.91 896.33
Eldorado at Santa Fe CDP 6,486 6,130 356 5.81% Santa Fe 20.81 311.68
Lee Acres CDP 6,480 5,858 622 10.62% San Juan 12.86 503.89
29 Raton 6,103 6,885 -782 -11.36% Colfax 7.96 766.71
30 Los Ranchos de Albuquerque 6,062 6,024 38 0.63% Bernalillo 4.35 1,393.56
North Hobbs CDP 6,034 5,391 643 11.93% Lea 26.02 231.90
31 Truth or Consequences 6,023 6,475 -452 -6.98% Sierra 27.57 218.46
32 Aztec 5,960 6,763 -803 -11.87% San Juan 12.53 475.66
White Rock CDP 5,927 5,725 202 3.53% Los Alamos 7.05 840.71
33 Taos 5,763 5,716 47 0.82% Taos 5.7 1,011.05
Los Chaves CDP 5,067 5,446 -379 -6.96% Valencia 10.23 495.31
34 Tucumcari 4,975 5,363 -388 -7.23% Quay 9.49 524.24
Placitas CDP 4,917 4,977 -60 -1.21% Sandoval 29.7 165.56
Meadow Lake CDP 4,813 4,708 105 2.23% Valencia 11.54 417.07
Paradise Hills CDP 4,733 4,256 477 11.21% Bernalillo 1.01 4,686.14
Santa Teresa CDP 4,710 4,258 452 10.62% Doña Ana 10.81 435.71
35 Rio Communities 4,653 4,723 -70 -1.48% Valencia 6.26 743.29
El Cerro Mission CDP 4,547 4,657 -110 -2.36% Valencia 5.88 773.30
Holloman AFB CDP 4,112 3,054 1,058 34.64% Otero 12.47 329.75
36 Bosque Farms 3,820 3,904 -84 -2.15% Valencia 3.97 962.22
37 Edgewood 3,805 3,735 70 1.87% Santa Fe, Bernalillo & Sandoval 48.7 78.13
38 Peralta 3,565 3,660 -95 -2.60% Valencia 4.46 799.33
Sandia Heights CDP 3,377 3,193 184 5.76% Bernalillo 1.93 1,749.74
University Park CDP 3,276 4,192 -916 -21.85% Doña Ana 1.55 2,113.55
39 Milan 3,234 3,245 -11 -0.34% Cibola 4.34 745.16
San Felipe Pueblo CDP 3,167 2,404 763 31.74% Sandoval 11.98 264.36
40 Eunice 3,022 2,922 100 3.42% Lea 3.01 1,003.99
El Cerro CDP 2,965 2,953 12 0.41% Valencia 4.24 699.29
41 Tularosa 2,912 2,842 70 2.46% Otero 2.81 1,036.30
La Cienega CDP 2,884 3,819 -935 -24.48% Santa Fe 11.85 243.38
West Hammond CDP 2,867 2,790 77 2.76% San Juan 7.46 384.32
Agua Fria CDP 2,857 2,800 57 2.04% Santa Fe 2.54 1,124.80
42 Clayton 2,763 2,980 -217 -7.28% Union 8.12 340.27
Vado CDP 2,681 3,194 -513 -16.06% Doña Ana 2.98 899.66
43 Santa Rosa 2,680 2,848 -168 -5.90% Guadalupe 4.97 539.24
Santo Domingo Pueblo CDP 2,665 2,456 209 8.51% Sandoval 2.06 1,293.69
44 Ruidoso Downs 2,576 2,815 -239 -8.49% Lincoln 3.79 679.68
Cannon AFB CDP 2,575 2,245 330 14.70% Curry 5.8 443.97
Crownpoint CDP 2,565 2,278 287 12.60% McKinley 7.05 363.83
Dulce CDP 2,499 2,743 -244 -8.90% Rio Arriba 12.81 195.08
45 Lordsburg 2,463 2,797 -334 -11.94% Hidalgo 8.39 293.56
Ranchos de Taos CDP 2,435 2,518 -83 -3.30% Taos 3.62 672.65
San Ysidro CDP 2,432 2,090 342 16.36% Doña Ana 2.65 917.74
Chimayo CDP 2,369 3,177 -808 -25.43% Rio Arriba & Sante Fe 8.59 275.79
Valencia CDP 2,295 2,192 103 4.70% Valencia 2 1,147.50
46 Bayard 2,235 2,328 -93 -3.99% Grant 0.95 2,352.63
Pojoaque CDP 2,202 1,907 295 15.47% Santa Fe 4.37 503.89
La Mesilla CDP 2,134 1,772 362 20.43% Rio Arriba 4.47 477.40
47 Jal 2,121 2,047 74 3.62% Lea 4.59 462.09
Boles Acres CDP 2,053 1,638 415 25.34% Otero 12.17 168.69
Flora Vista CDP 2,040 2,191 -151 -6.89% San Juan 4.62 441.56
Jarales CDP 2,000 2,475 -475 -19.19% Valencia 8.68 230.41
Las Maravillas CDP 1,994 1,628 366 22.48% Valencia 1.02 1,954.90
Jemez Pueblo CDP 1,969 1,788 181 10.12% Sandoval 2.04 965.20
Navajo CDP 1,918 1,645 273 16.60% McKinley 2.25 852.44
Nambe CDP 1,906 1,818 88 4.84% Santa Fe 8.69 219.33
Tome CDP 1,855 1,867 -12 -0.64% Valencia 4.95 374.75
48 Mesilla 1,855 2,196 -341 -15.53% Doña Ana 6.74 275.22
La Luz CDP 1,837 1,697 140 8.25% Otero 10.7 171.68
Keeler Farm CDP 1,823 1,305 518 39.69% Luna 11.39 160.05
49 Moriarty 1,786 1,910 -124 -6.49% Torrance 5.84 305.82
Waterflow CDP 1,784 1,670 114 6.83% San Juan 8.32 214.42
Berino CDP 1,775 1,441 334 23.18% Doña Ana 0.93 1,908.60
50 Questa 1,754 1,770 -16 -0.90% Taos 5.13 341.91
51 Santa Clara 1,751 1,686 65 3.86% Grant 1.28 1,367.97
Monterey Park CDP 1,697 1,567 130 8.30% Valencia 2.62 647.71
Carnuel CDP 1,687 1,232 455 36.93% Bernalillo 5.4 312.41
Upper Fruitland CDP 1,660 1,662 -2 -0.12% San Juan 7.43 223.42
52 Columbus 1,623 1,664 -41 -2.46% Luna 2.79 581.72
Black Rock CDP 1,613 1,323 290 21.92% McKinley 1.69 954.44
53 Hatch 1,590 1,648 -58 -3.52% Doña Ana 2.48 641.13
Spencerville CDP 1,587 1,258 329 26.15% San Juan 3.34 475.15
54 Estancia 1,584 1,655 -71 -4.29% Torrance 5.75 275.48
Thoreau CDP 1,570 1,865 -295 -15.82% McKinley 15.91 98.68
White Sands CDP 1,567 1,651 -84 -5.09% Doña Ana 3.09 507.12
La Union CDP 1,561 1,106 455 41.14% Doña Ana 4.14 377.05
Ohkay Owingeh CDP 1,531 1,143 388 33.95%  Rio Arriba 3.84 398.70
Arenas Valley CDP 1,524 1,522 2 0.13% Grant 4.07 374.45
Mescalero CDP 1,520 1,338 182 13.60% Otero 17.89 84.96
Laguna CDP 1,510 1,241 269 21.68% Cibola 10.94 138.03
Sandia Knolls CDP 1,486 1,208 278 23.01% Bernalillo 2.78 534.53
Radium Springs CDP 1,400 1,699 -299 -17.60% Doña Ana 5.98 234.11
55 Loving 1,395 1,413 -18 -1.27% Eddy 1.17 1,192.31
56 Capitan 1,388 1,489 -101 -6.78% Lincoln 3.22 431.06
Indian Hills CDP 1,374 892 482 54.04% Torrance 5.71 240.63
57 Elephant Butte 1,341 1,431 -90 -6.29% Sierra 4.29 312.59
Sausal CDP 1,322 1,056 266 25.19% Valencia 2.28 579.82
Doña Ana CDP 1,313 1,211 102 8.42% Doña Ana 0.64 2,051.56
58 Pecos 1,313 1,392 -79 -5.68% San Miguel 1.74 754.60
El Valle de Arroyo Seco CDP 1,291 1,440 -149 -10.35% Santa Fe 5.19 248.75
59 Dexter 1,264 1,266 -2 -0.16% Chaves 0.74 1,708.11
60 Hagerman 1,244 1,257 -13 -1.03% Chaves 1.38 901.45
61 Hurley 1,240 1,297 -57 -4.39% Grant 1.02 1,215.69
Skyline-Ganipa CDP 1,232 1,224 8 0.65% Cibola 6.15 200.33
Ponderosa Pine CDP 1,225 1,195 30 2.51% Bernalillo 8.07 151.80
El Rancho CDP 1,219 1,199 20 1.67% Santa Fe 2.1 580.48
San Miguel CDP 1,213 1,153 60 5.20% Doña Ana 2.29 529.69
La Villita CDP 1,153 957 196 20.48% Rio Arriba 1.36 847.79
La Huerta CDP 1,116 1,246 -130 -10.43% Eddy 1.56 715.38
62 Angel Fire 1,113 1,216 -103 -8.47% Colfax 28.93 38.47
63 Texico 1,110 1,130 -20 -1.77% Curry 0.83 1,337.35
Taos Pueblo CDP 1,098 1,135 -37 -3.26% Taos 15.59 70.43
Santa Clara Pueblo CDP 1,086 1,018 68 6.68% Rio Arriba 2.02 537.62
Midway CDP 1,065 971 94 9.68% Chaves 2.49 427.71
San Rafael CDP 1,055 933 122 13.08% Cibola 10.32 102.23
El Rito CDP 1,051 808 243 30.07% Rio Arriba 4.11 255.72
Church Rock CDP 1,051 1,128 -77 -6.83% McKinley 2.31 454.98
San Pablo CDP 1,042 806 236 29.28% Doña Ana 1.22 854.10
Fairacres CDP 1,030 824 206 25.00% Doña Ana 2.11 488.15
64 Chama 1,018 1,022 -4 -0.39% Rio Arriba 2.67 381.27
Talpa CDP 1,014 778 236 30.33% Taos 1.31 774.05
Dixon CDP 1,009 926 83 8.96% Rio Arriba 11.53 87.51
Tohatchi CDP 1,004 808 196 24.26% McKinley 6.15 163.25
La Puebla CDP 1,000 1,186 -186 -15.68% Santa Fe 3.04 328.95
Chamita CDP 987 870 117 13.45% Rio Arriba 3.85 256.36
Salem CDP 975 942 33 3.50% Doña Ana 1.2 812.50
El Duende CDP 972 707 265 37.48% Rio Arriba 1.47 661.22
Tesuque CDP 961 925 36 3.89% Santa Fe 5.69 168.89
65 Logan 954 1,042 -88 -8.45% Quay 9.54 100.00
San Antonito CDP 952 985 -33 -3.35% Bernalillo 2.44 390.16
66 Carrizozo 938 996 -58 -5.82% Lincoln 8.36 112.20
Hernandez CDP 937 946 -9 -0.95% Rio Arriba 1.7 551.18
Algodones CDP 932 814 118 14.50% Sandoval 7.19 129.62
67 Springer 929 1,047 -118 -11.27% Colfax 1.47 631.97
Chamberino CDP 923 919 4 0.44% Doña Ana 3.06 301.63
Cedar Crest CDP 919 958 -39 -4.07% Bernalillo 3.12 294.55
68 Fort Sumner 915 1,031 -116 -11.25% De Baca 3.31 276.44
Twin Lakes CDP 908 1,052 -144 -13.69% McKinley 9.02 100.67
69 Cimarron 899 1,021 -122 -11.95% Colfax 2 449.50
70 Magdalena 898 938 -40 -4.26% Socorro 6.26 143.45
Arroyo Seco CDP 888 1,785 -897 -50.25% Taos 6.82 130.21
La Mesa CDP 887 728 159 21.84% Doña Ana 2.37 374.26
Zia Pueblo CDP 879 737 142 19.27% Sandoval 27.03 32.52
71 Mountainair 866 928 -62 -6.68% Torrance 1.07 809.35
Sedillo CDP 851 802 49 6.11% Bernalillo 2.74 310.58
Happy Valley CDP 850 519 331 63.78% Eddy 2.16 393.52
Adelino CDP 841 823 18 2.19% Valencia 2.75 305.82
72 Tatum 827 798 29 3.63% Lea 1.58 523.42
Paraje CDP 817 777 40 5.15% Cibola 5.57 146.68
Nenahnezad CDP 812 688 124 18.02% San Juan 3.48 233.33
McIntosh CDP 809 1,484 -675 -45.49% Torrance 22.27 36.33
La Plata CDP 751 612 139 22.71% San Juan 10.15 73.99
Mora CDP 751 656 95 14.48% Mora 7.98 94.11
73 Cuba 740 731 9 1.23% Sandoval 3.38 218.93
Mimbres CDP 737 667 70 10.49% Grant 4.44 165.99
Atoka CDP 727 1,077 -350 -32.50% Eddy 6.76 107.54
Pueblitos CDP 708 794 -86 -10.83% Valencia 2.14 330.84
San Ildefonso Pueblo CDP 699 524 175 33.40% Santa Fe 4.45 157.08
74 Cloudcroft 693 674 19 2.82% Otero 1.56 444.23
Cedar Hill CDP 693 847 -154 -18.18% San Juan 5.35 129.53
Napi Headquarters CDP 688 727 -39 -5.36% San Juan 3.62 190.06
Highland Meadows CDP 688 624 64 10.26% Valencia 7.01 98.15
Placitas CDP 678 576 102 17.71% Doña Ana 0.14 4,842.86
La Hacienda CDP 671 725 -54 -7.45% Luna 1.35 497.04
Cedar Grove CDP 669 747 -78 -10.44% Santa Fe 18.03 37.10
Ojo Amarillo CDP 659 766 -107 -13.97% San Juan 1.96 336.22
Chili CDP 648 654 -6 -0.92% Rio Arriba 3.28 197.56
Livingston Wheeler CDP 645 609 36 5.91% Eddy 1.63 395.71
Santa Ana Pueblo CDP 645 610 35 5.74% Sandoval 7.02 91.88
75 Melrose 642 651 -9 -1.38% Curry 1.69 379.88
Mesita CDP 627 804 -177 -22.01% Cibola 10.7 58.60
Alamo CDP 607 1,085 -478 -44.06% Socorro 39.17 15.50
Cochiti Lake CDP 590 569 21 3.69% Sandoval 1.24 475.81
Peña Blanca CDP 584 709 -125 -17.63% Sandoval 6.89 84.76
Madrone CDP 577 707 -130 -18.39% Valencia 3.08 187.34
East Pecos CDP 569 757 -188 -24.83% San Miguel 3.6 158.06
76 Kirtland 564 7,875 -7,311 -92.84% San Juan 14.21 39.69
Mesquite CDP 563 1,112 -549 -49.37% Doña Ana 0.82 686.59
High Rolls CDP 558 834 -276 -33.09% Otero 15.41 36.21
Cuyamungue CDP 548 479 69 14.41% Santa Fe 1.17 468.38
Tyrone CDP 545 637 -92 -14.44% Grant 0.34 1,602.94
77 Tijeras 543 541 2 0.37% Bernalillo 1.15 472.17
Peñasco CDP 527 589 -62 -10.53% Taos 1.22 431.97
Los Luceros CDP 523 906 -383 -42.27% Rio Arriba 1.63 320.86
Isleta Village Proper CDP 509 491 18 3.67% Bernalillo 0.27 1,885.19

Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2016
Source: U.S. Census Bureau, Population Division
Release Date: May 2017.

Qualifying for a Home Loan in New Mexico

Conforming Mortgages

As of 2018 the conforming loan limit across the United States is set to $453,100, with a ceiling of 150% that amount in areas where median home values are higher. High local affordability makes the $453,100 ceiling apply statewide for single unit homes. Dual unit homes have a limit of $580,150, triple unit homes have a limit of $701,250 & quadruple unit homes have a limit of $871,450. People buying premium properties in the Albuquerque metro area may be above these thresholds, requiring a jumbo loan. Jumbo loans typically have a slightly higher rate of interest than conforming mortgages, though spreads vary based on credit market conditions.

The most popular type of loan is a 30 year mortgage. Given that homes are quite affordable across the state due to high local incomes, 15 year fixed loans are another popular option which helps home buyers build equity faster and save on interest expenses.

Adjustable rate mortgages (ARM) are also an option for potential homeowners who don't believe they will live in the home for many years and want to write off interest payments. Balloon mortgages are another route for aspiring homeowners. Balloon mortgages are when a large portion of the borrowed principle is repaid in a single payment at the end of the loan period. Balloon loans are not common for most residential buyers, but are more common for commercial loans and people with significant financial assets.

Mortgage underwriters prefer debt-to-income ratios to be below 40%, but other factors are considered on the loan application. When qualifying for a loan, a credit score of 720 or better can help secure a favorable loan. As a general rule of thumb, coming to the table with a 20 percent down payment is usually the best approach. This down payment requirement does not apply for Federal assistance programs such as FHA, in which applicants can have a lower credit score and income but still receive financing.

The piggyback loan is another type of mortgage which is simply two mortgages in one. The piggyback loan can eliminate the need for private mortgage insurance by covering 80% of the home's value with the first loan, while the second loan helps to pay for part of the down payment.

Governmental Assistance Programs

Federal Loan Programs

The Department of Housing and Urban Development (HUD) offers special loan programs such as FHA loans to those who may not qualify for conventional loans due to a lower credit score or a limited down payment.

Military veterans can take advantage of VA loans which offer affordable rates & do not require a down payment.

USDA loans can help people with low incomes in rural parts of the state qualify for a subsidized low-interest loan. Given the low population density throughout most of the state, most areas qualify.

New Mexico Mortgage Assistance Programs

New Mexico's local government and housing authority put several mortgage assistance programs in place to help people obtain a mortgage and purchase a home.

First Down
Many people are hesitant to purchase a home because they won't be able to afford a down payment or closing costs. The First Down program wants to change that, and they offer applications down payment assistance in the form of a second mortgage loan with a lower interest rate.

This program was designed for low-income or moderately low-income applicants who can afford a mortgage but may have trouble paying a down payment or closing costs on their home. To be eligible for this program, you have to apply and obtain a mortgage loan through the First Home Program. Once you do this, you can apply for this program, and the funding is based on your needs. It caps at a maximum second loan of $8,000.

You repay this loan each month with your normal mortgage payment, and the loan itself is a 30-year fixed rate loan with an interest rate of 6%. This program also has no penalty if you want to pay it off sooner. Any applicant for this program will have to meet household income limits, and these do vary from county to county.

First Home Program
New Mexico's Mortgage Finance Authority (MFA) created the First Home Program to help first-time homebuyers get a mortgage loan at an affordable rate. You can also apply and combine this program with the MFA's down payment assistance program. Any first-time homebuyer will have to meet certain eligibility requirements to be considered eligible for this program, and the requirements do vary from county to county.

A first-time homebuyer must be planning to purchase a home to use as their primary residence, and they can't have owned a home in the past three years. Applicants must also meet their local household income limit for their family size, have a decent credit history, and have the home they want to purchase fall within the program limits.

One an applicant applies for the program; an MFA-approved lender will look over the application. They'll look at the applicant's monthly income, their expenses, and their credit score along with their credit history. If they believe this program is a good match, they'll approve the applicant for a 30-year, fixed-rate mortgage at a competitive interest rate.

Next Home Program
The Next Home Program was designed to help low-income or moderately low-income participants purchase a second home. This program features higher income limits than the First Home program, and there are also slightly more flexible qualification guidelines for the applicants.

The funding you receive will come in the form of a 30-year fixed rate mortgage that includes a 3% down payment assistance grant the applicant won't have to pay back. You can only use these funds to purchase a single family primary residence, and investment properties are not allowed.

In order to be considered eligible, every applicant has to have a credit score of 620 or higher. Every applicant also has to contribute at least $500 to the program, and they have to meet certain income qualification requirements, and the home you want to purchase has to fall under certain price restrictions.

Natural Disasters

Flood Insurance

Homeowner's insurance policies typically do not cover flooding. Most of the state of New Mexico is considered to have a very low flooding risk. Counties with relatively elevated risk profiles include:

  • Low risk: Bernalillo
  • Moderate risk: Chaves, Colfax, Curry, Grant, Rio Arriba, Sandoval, San Juan
  • High risk: Eddy, Lea
  • Very high risk: Otero, Valencia

Home buyers with mortgages in high-risk areas are required to buy flood insurance. Most flood insurance policies are sold by the United States federal government through The National Flood Insurance Program. Under-priced flood insurance in high-risk areas act as a subsidy to wealthy homeowners.

The NFIP does not charge nearly enough to cover the expected costs of its liabilities. The assessments are not sufficient to build any buffer to cover an extraordinary year, such as what occurred with Hurricane Katrina in 2005 or Hurricane Sandy in 2012. Because homeowners don€™t incur the full cost of building in a flood zone we end up with more houses there than if homeowners incurred the full cost of the flood risk, which exacerbates the government€™s costs in the next disaster.

Homeowners who live in lower risk areas & are not required to purchase flood insurance heavily cross-subsidize homeowners who are in areas where floods are more common.

Earthquakes

New Mexico has a moderate to high earthquake risk. Here are county-by-county risk profiles for counties with a risk level above very low.

  • Low risk: San Miguel
  • Moderate risk: Catron, Cibola, Colfax, Dona Ana, Grant, Hidalgo, Lincoln, Luna, Mckinley, Mora, Otero, Rio Arriba, Sandoval, Sierra, Torrance
  • High risk: Bernalillo, Santa Fe, Socorro, Taos, Valencia

Standard rental and homeowner insurance policies typically do not cover earthquake damage, though they usually cover losses caused by fires which resulted from an earthquake. You can supplement your homeowner's insurance with an earthquake policy.

New Mexico Real Estate Laws

New Mexico Capitol Building in Santa Fe.

Property Taxes

New Mexico has the ninth-lowest property tax collection rates in the United States. On average, homeowners in the state paid around $2,214 per year on a property that is valued at $227,540 . This rate equals out to be around 0.97% of the property's value and around 1.69% of the property owners annual income limit. The county that collects the highest amount of property taxes is Bernalillo County. The county that collects the least amount of property taxes is Harding County with $255.00 collected per property, per year.

New Mexico Homestead Laws

New Mexico put several laws in place to protect homeowners in the event of an unexpected bankruptcy. If the homeowner can no longer pay their mortgage or they have unresolved debts due to a bankruptcy that happened because of a divorce, death, disability, or unexpected medical emergency, the Homestead Laws protect a portion of their property. In New Mexico, a homeowner can claim up to $30,000 or if the homestead in question isn't worth that amount, $2,000 in any property and $500 for personal property.

Adverse Possession

New Mexico is a state that allows people to obtain property by way of Adverse Possession. This means that if someone freely and openly occupies a piece of land or property for ten years, they can then go and get a legally-binding deed to the property that names them the owner of said property.

However, there are several ways someone can go about Adverse Possession in New Mexico, and the court has several scenarios in place. The trespasser must prove to the courts without a doubt that they openly occupied the land in question for an unbroken period of 10 years. Additionally, the adverse possession must be:

  • Against the right of the property owner and without permission (hostile)
  • Tresspasser must exercise total control over the property (actual)
  • The trespasser must claim the property alone (exclusive)
  • The trespasser must use the property without hiding what they're doing. (open and notorious)

New Mexico Foreclosures

Home loans are usually recognized in New Mexico as mortgage instruments. This is true because unless a homebuyer explicitly allows a deed of trust to go into effect, the homebuyer may opt to use a mortgage contract to govern the terms of the loan.

The state of New Mexico allows for both judicial and nonjudicial foreclosures, but most mortgage lenders choose to follow the judicial foreclosure process. The mortgage lender will initiate the foreclosure process by filing a lawsuit against the defaulted borrower with the court system, and the foreclosure will proceed from that point on.

New Mexico's foreclosure process on residential real estate properties is straightforward. Lenders who foreclose on homes have to follow a process in New Mexico that is straightforward. Most of the time, lenders may use judicial foreclosure to re-acquire a property. Here is how the process works:

  • The lender or trustee must first file a petition in district court to start the foreclosure process. In New Mexico, this entails starting the judicial foreclosure process. This is necessary because a lis pendens document must be attached to the property to legally start the foreclosure process. This legal document provides public notice that the property is being foreclosed upon. Without it, the foreclosure case cannot go forward.
  • After the lis pendens document has been obtained, formal notice is sent to borrower. If the borrower chooses to do nothing, the foreclosure process takes approximately 120-180 days to complete.
  • If the borrower does contest the foreclosure proceedings, the court must allow the borrower a chance to "redeem” the property. This means that before a final foreclosure judgment is granted, the court must give the borrower a redemption period that gives the borrower one last chance to pay off the entire loan plus any court costs, interest and legal fees.
  • New Mexico law gives borrowers anywhere from 30-270 days to "redeem" the property. As a general rule, most borrowers receive 90 days to redeem the property. If the borrower cannot do this, the court will then issue a final foreclosure judgment.
  • Once the petition is granted, the lender may then attempt to sell the home at auction. If the home goes up for auction, New Mexico law requires that the winning bid be at least 80% of the home's fair market value. This protects the borrower from buyers who try to buy homes at foreclosure sales from submitting unfairly low bids on the property.
  • If the home is sold for at least 80% of the home's fair market value, the home is sold and the borrower is on the hook for the difference. If the home does not sell for at least 80% of the home's fair market value, it may be re-listed until the home has reached a price that is at least 80% of fair market value.
  • This process can take between up to eight months to complete. As a result, many lenders try to work with borrowers to come up with repayment options to avoid foreclosure proceedings.

New Mexico is also considered to be a recourse state as the mortgage lender is allowed to sue the borrower for any deficient funds the mortgage lender may have once the property was sold at a foreclosure auction. For example, if a mortgage lender repossesses a property after the borrower stopped paying mortgage payments and sold it for $85,000 at an auction but the borrower still owed $140,000, there would be a deficit of $55,000. The mortgage lender would then have six years from the date of the foreclosure auction to sue the borrower for the additional $55,000 deficit.

There is a restriction to this recourse if the foreclosure process is done through nonjudicial means. The mortgage lender is not allowed to sue a defaulted borrower if they chose to use a nonjudicial foreclosure process to foreclose on a residential loan that was made to a low-income household. The definition of a low-income household is a household whose current yearly income is at or below 80% of the area's median adjusted income for the family size. The decision on whether or not a household is considered to be low-income will be based on what the mortgage lender found out at the loan's origination point. (New Mexico State. Ann. § 48-10-17)

Additional Resources

Please check out the following resources to learn more about the New Mexico real estate market.

 

Sunset at Santa Fe Ski Basin .