Regardless of the area of New Mexico from Albuquerque to Las Cruces, from Rio Rancho to Santa Fe or from South Valley to Roswell or anywhere in between, New Mexico has seen a dramatic increase in the number of foreclosure homes in the state. This increase in defaulting mortgages has been caused in large part by the mortgage meltdown and the global financial collapse that followed it.
New Mexico like all other states has felt the brunt of the foreclosure crisis. New Hampshire is however, less effected than most states in this statistic due to its relatively stable economy based on three main industries. Fossil fuels, Tourism and a historically strong presence of federal employees represent the greatest portions of the economy.
The gross state product is $76 billion annually which is less than the annual revenue of many American companies and is the 14th lowest in the nation. This relatively low but consistent gross state output is one reason that New Mexico has seen a lower than average number of foreclosures ranking foreclosures in New Mexico as the 6th lowest in the country.
The New Mexico economy which was originally based on trade has transitioned from random trading posts turned towns to its current economic structure which has the state government promoting high tech industries which capitalize on the relatively large number of military installations. Largest among these military bases are Kirtland Air Force Base, Holloman Air Force Base, Cannon Air Force Base and the US Armies, Fort Bliss. The Air Force maintains such a large foothold in New Mexico for numerous reasons not least of which are the extremely low precipitation and large uninhabited areas.
Real estate and foreclosures are therefore prominent in areas near military instillations and other high density counties such as Bernalillo, Dona Ana, Santa Fe, Sandoval and Valencia. The state has maintained its agricultural base with 350,000 acres dedicated to the production of 1.5 million tons of hay. New Mexico supports 24,500 jobs related to agriculture and 85,000 residents employed by agricultural processing. Livestock and the industries that support ranching produce an annual $3 billion. Ranches and farms however support a much less dense population and wise investors will focus on the more populated metropolitan areas of the state.
The industries that currently sustain the state's economy are historically slow growth but offer a degree of sustainability that high growth industries do not provide. Low revenue producing industries such as federal employment and agriculture do not generally lead to an expansive growth of a local economy and therefore New Mexico has little chance of a speedy recovery. The greatest opportunity in recent times for the state of New Mexico is real estate and foreclosure investment as lending institutions and banks work toward balancing their books.
This is more good news for real estate investors in New Mexico as the state has a lower than average unemployment percentage which is currently hovering just above 8 percent, which is 10% lower than the national average and substantially lower than states with a large manufacturing base. States such as Michigan and Ohio have unemployment rates that nearly double that of New Mexico.
This relatively low unemployment is a reflection of the sub-prime mortgage meltdown more than any local fiscal misstep. Unemployment statewide has more than doubled in recent years and even though it is below the national average still poses an obstacle for the local economy and is higher than it has been in New Mexico historically. Unemployment figures are significant to the health and availability of purchasers for resell or rent and New Mexico fares far better than most states in this regard.
The above statistics are all indicative of great real estate investment potential. Real Estate investors or traditional homebuyers are in the best position in today's market to see dramatic increases in real estate values than ever before. This opportunity to buy homes well below market should not be overlooked. With a depressed market and additional reductions of home prices offered by banks and lending institutions that are sitting on inventories of foreclosed homes that they must sell, now is the time to invest in real estate in general and foreclosures in particular.
Investors and owner occupants who take advantage of the down turn in the economy will reap greater rewards for being forward thinking enough to see the benefits of buying undervalued homes in a down economy. In this respect New Mexico represents nothing if not opportunity.Important statistics in the state are:
New Mexico ranks 36th in total population
New Mexico ranks 45th in population density
New Mexico ranks 44th in number of foreclosures per unit
New Mexico ranks 44th in average Household income
New Mexico ranks 36th in Gross State Product
The above numbers once collated indicate that although New Mexico has a lower than average household income its economy is very stable with little chance of imploding. This stable economy comes with low growth potential but the exchange has proven to be worthwhile during this latest global economic downturn and offers less chance of economic busts. Therefore, a foreclosure purchase will rely on the equity gained at the time of purchase more than other states which generally count on equity increases through time and the natural appreciation of the real estate market. This is why buying foreclosures in New Mexico is important.
This is good news for New Mexico Real Estate investors within the state as the population of the state does remain stable unlike other states that have recently shown a negative population growth as citizens literally give up on a state and migrate to areas of the country that show greater potential for employment or higher wages. The people of New Mexico show no signs of a mass exodus which means that the housing market should level off and begin to regain its strength with a degree of certainty that few states offer. This continues to illustrate the importance of buying under- valued homes in the state. NM foreclosure listings are by far the best and surest way to buy homes under value.
The areas below show a greater population density and therefore should provide a greater degree of ease when reselling or renting the home to a tenant.