What does 2018 have in store for us
2018 is shaping up to be a interesting year in the El Paso Real Estate Market scape. We have a constant bombardment of news in the retail and commercial side of Real Estate opportunities and expansion.
From the addition of WestTowne to the completion of the new hospital of Providence Campus at Transmountain El Paso’s City scale is changing. Does this mean Value is going to rise? The jury is still out on this question as everyone has a opinion but no one has a actual thermometer to take the pulse to see if we are doing that well.
If we use Market inventory from MLS data the market has seen a 4.7% increase in values of resale homes from feb 2017 to feb 2018. in that same period Market inventory of new listings increased by 12.9% with Market Sales increase by 24%.
Using a simple supply and demand model inventory is moving faster and therefore decrease generating the higher demand and moving Values in a positive direction. The reason the jury is still out is the fact of all the new growth on the new construction stage. Builders in El Paso are notorious for taking advantage of growth striping value from the Resale market. When they eat up the supply chain with New Construction we are faced with abundance of ReSale homes on market and a declining value as is currently happening in Horizon.