Housing prices up across area

Housing prices are up, available real estate offerings are down and the reasons for both are tough to define according to an area business expert and a local Realtor.

Social media chatter about real estate features comments from people who are frustrated by the cost of buying a house, renting or amazed by how much both costs have gone up over the past few years.

Bob Schneider is the dean of the college of business at Eastern New Mexico University. He spoke of a few factors that partially explain the high cost of housing.

“I believe there is a housing spending spree going on now prior to the hiking of interest rates,” Schneider said.

“I believe interest rates will be two to three times higher by the end of the year,” he said. “Certainly by next summer.”

“I don’t think that explains it but that’s certainly part of it,” Schneider said.

Another factor, according to Schneider: There’s not a lot of new construction going on.

“New housing is down because of the high cost of materials,” he said.

Schneider said the Clovis/Portales market is experiencing the same housing stresses as are being experienced nationwide.

The presence of Cannon Air Force Base near Clovis and Portales adds a different factor to the real estate market here.

“I know several people whose houses were bought by Air Force people who won’t be here for a couple of months,” Schneider said. “They’re buying real estate off the internet sight unseen.”

Schneider said there is emotional buying going on now.

“People have come out of the pandemic with money in hand,” he said. “And people are expecting interest rates to go up.”

“Some people are selling their homes because they see there is money to be made,” Schneider said.

Brett Johnson is a Clovis real estate broker.

“This real estate market is like something I’ve never seen before, at least not since 1983 anyway,” Johnson said.

“There’s more demand than supply,” he said. “There are a very limited number of housing units for sale.”

Johnson says he doesn’t know what’s driving the demand for housing.

“Look at the figures from our newest Census,” he said. “We grew by what, just 2,000 people? And yet there’s much more demand for housing than supply.”

“Is it a reflection of the stimulus money the government gave away? Who knows for sure,” Johnson said.