El Paso Real Estate Market Still Changing

While the rest of the country seems to be worried about the worsening housing market, El Paso is going through a bit of a renewal on many fronts. Property sales are actually on the increase, both commercially and privately. Although actual dollar figures seem to have frozen from their previous upward trend, sales are continuing to rise, fueling hope that the city will be able to weather any coming housing changes without any problems.

On the commercial front, many new businesses are purchasing property and the downtown area is undergoing quite a change. The Plaza Hotel which sat vacant for years was recently purchased by Paul Foster, and the El Paso Electric Company purchased the Station Tower a few days later. Many are a bit puzzled by the sudden interest in the Downtown area, but for now, no one is knocking the renewal.

Several real estate investment trust firms are also getting involved in property in this area. Kathy Dodson, El Paso's Economic Development Director stated, "The way the investment is taking place in the Downtown core -- with the International Hotel, Mills, the Chase Bank building and all the upgrading -- is not following the pattern, at least not yet," she said. "We need to recreate the market down here. In Santa Monica, you'll have national retailers right next to a local shop, a Cheesecake Factory next to a local eatery. You create an atmosphere where there's something for everyone."

On the private home front, prices have stalled out from their previous increases, settling in at a 3.4% jump from the previous year. Home sales are still strong though, with the median price coming it at $131,900 for an average home. "We should be cheering that our prices are still moving (up), and we're not seeing the declines" of many other markets, said Dan Olivas, president of the Greater El Paso Association of Realtors. "We still have a very vibrant market."

According to analysts, the slow down is actually still in step with the annual rates of appreciation, which range from 2 to 4%. Although rates have gone much higher in the past few years, they seem to be settling down back towards the norm. However, prices may take a jump later this year thanks to some new developments that are scheduled to begin as well as the planned expansion of Fort Bliss.

In addition to these developments, a planned land swap could be very good for the city. The section of land in question is located on Loop 375 and Montana, and is currently owned by the US Government. However, plans are in place to swap the land for rangeland elsewhere in the state, opening up the area for developers. New homes and businesses are currently being planned for this area. Tanny Berg, a local developer stated, "It has always been envisioned as being the premier intersection," particularly since the city began expanding eastward. Berg concluded that the new developments could bring "A whole different face of this community, and a whole new personality."

Tony Palacios
Find a Home Direct