88316, Capitan, NM

Capitan, NM is located in the southwestern corner of New Mexico. The zip code 88316 has a population of just over 2,000 people and an average household income of just over $50,000. Home prices in Capitan have increased significantly in recent years, reaching a median sale price of $217,500 in 2016. This represents a growth rate of almost 30% over the past two years alone.

One reason for this rapid appreciation is that Capitan is located in an area with strong job growth prospects. The local economy has been bolstered by the expansion of both the oil and gas industry and the military base at Cannon Air Force Base. Additionally, there are many new businesses moving into the area thanks to its close proximity to Albuquerque and Santa Fe.

Despite these positive factors, there are some potential risks associated with home prices in Capitan. First and foremost is the fact that interest rates are currently very low, which could lead to a slowdown in sales activity if interest rates rise later on. Additionally, although Capitan has seen strong job growth recently, it's still not as robust as some other areas of New Mexico. If economic conditions worsen elsewhere in the state or nationally, this could lead to lower demand for housing stock and lower home prices overall in Capitan.