NM Turns the Corner

New Mexico’s economic growth will be “lukewarm” in 2011, unemployment will peak at 8.8 percent and normal job growth won’t return until 2014, according to the UNM Economic Research forecast. Job growth started to return by the end of 2010 and is expected to grow 1.3% through 2015. Personal income should grow 2% this year and up to 5% in 2014. Nationally, the GDP will grow 2.6% in 2011, interest rates will remain low and the housing market has probably bottomed out. Most of NM’s industries are showing improved employment, even if at a rate slower than the rate at which jobs were lost with the exception of government jobs. Robust growth in professional services, business services and moderate growth in education and healthcare is anticipated. The collapsed housing bubble is a problem because even if someone wanted to relocate for a job, they can’t easily sell their homes. The good news is that in NM only 4.6% of homeowners are underwater compared to 68% in Nevada. People have no idea what to do with their homes.

I am finding that buyers are starting to get active and feel that now is a good time to buy, which means now is a good time to list especially before more foreclosures are dumped on the market by the large banks. Give me a call at 505-220-9193 to discuss your options.