December 2013 Market Report

Live with our Residential Real Estate Expert Cheryl Marlow, at Keller Williams Realty!

I’m excited to report that single-family detached home sales for December this year saw an almost 8% increase from December of 2012! There were 713 homes and condos closed last month, putting as at an average of 23 homes sold per day. Available inventory has increased from last year with over 4,900 homes and condos on the market. I’m keeping a close eye on supply and demand, as this ultimately drives values of properties up or down!

What price points are selling the best?

Sales of single-family detached homes and condos have increased slowly but steadily over the past few years, which are positive indicators of our market stabilizing. The Greater Albuquerque areas consistently perform well in the affordable ranges below $250,000, with 74% of sales, with a full 15% in the $200-$250,000 range. The upper-end has been performing slowly but steadily better over the past few years, as well. Looking at the stats over the past couple of years, the upper-end only had 17 sales in December of 2011, and in December of 2013 there were 26 homes sold from $500,000 and up, representing 4% of sales. These figures overall indicate market stabilization under $250,000, and market improvement from $250-$500,000 with 22% of sales. With over 400 homes available priced at $500,000 and above, supply and demand are still out of balance in the higher price ranges.

Can you tell us about the areas that are performing the best?

Consistently the strongest number of sales are in the affordable price ranges always remains, and performed fantastically in the Northeast Heights, close-in west side, and a small section of southern Rio Rancho. The outlying areas, such as the East Mountains, are experiencing the same predicament as the upper-end. With an oversupply in these slower moving locations or in these higher price points, the price war and the beauty contest are still critical to keep in mind if you’re a seller. If you’re a buyer, there are still fabulous opportunities to purchase homes of terrific value with historically low interest rates.

November 2013 Market Report

I’m excited to report that single-family detached home sales for November this year saw a 2.5% increase from November of 2012! There were 617 homes and condos closed last month, putting as at an average of 20 homes sold per day. Available inventory has increased 10% from last year with almost 5,000 homes on the market. I’m keeping a close eye on supply and demand, as this ultimately drives values of properties.

What price points are selling the best?

Sales of single-family detached homes and condos have increased slowly but steadily over the past few years, which are positive indicators of our market stabilizing. The Greater Albuquerque areas consistently perform well in the affordable ranges below $250,000, with 78% of sales. The upper-end has been performing slowly but steadily better over the past few years, as well. There were 26 homes sold from $500,000 and up, representing only 4% of sales. 18% of the homes sold were in the $250-$500,000 price range. These figures indicate market stabilization under $250,000, and market improvement from $250-$500,000. Supply and demand are still out of balance in the higher price ranges.

What are your thoughts on the 2014 market?

My real estate crystal ball remains cautiously optimistic for 2014. We will continue to be in a price war and a beauty contest with realistically priced homes selling well. We will likely see a slowdown in January as new regulations take effect. The market should settle into a normal February-March cycle. Inventory will increase dramatically in the first and second quarters, which may create pressure on pricing.

Overall, 2014 should see a higher number of sales than 2013 as we continue to stabilize. I’m optimistic that we may even experience home value appreciation.

October 2013 Market Report

The Greater Albuquerque Association of Realtors released their monthly market report October, and I’d love to share these statistics with you and our listeners! We’re starting to see the seasonal adjustments in the figures with only 789 closed for last month, as opposed to the summer figures of around 1,000 properties sold monthly. Still, with 789 closed last month, that puts us at an average of 25 homes sold per day!

What price points and areas are selling the best?

Sales last month of single-family detached homes and condos rose just over 7% from 2012, and have increased slowly but steadily over the past few years, which are positive indicators of our market’s stabilization in strength and continued growth. The Greater Albuquerque areas consistently perform well in the affordable ranges below $250,000, with 79% of sales. The upper-end has been performing slowly but steadily better over the past few years, as well. There were 32 homes sold from $500,000 and up, which is still not terrific, however is an increase from 22 in 2011. As for areas, our market’s consistency creates predictability: the desirable Northeast Heights and Westside are the sweet spots, and the outlying areas remain slow.

What are your thoughts on the overall market?

Many sellers are telling me that they want to wait until after the holidays and into the spring to put or keep their home on the market. I want to reiterate that they may be making the wrong decision. While sales do tend to drop for winter, and there are fewer buyers out there, those buyers are very serious and qualified to purchase a home, and as I just reported, over 25 homes are still selling daily. With so many changes on the horizon for January 1st of 2014, this puts a time crunch on taking advantage of historically low interest rates and the ease of obtaining a loan. Dodd Frank will be impacting the financial world, and mortgages will be more difficult for homebuyers to obtain after January 1st. If any of our listeners are thinking of moving in the next 6 months, I would urge them to call me today and consider making that move in the next 6 weeks!

As always, who do you know that needs to buy or sell real estate today? Thanks!!

September 2013 Market Report

I’d like to take our listeners on an in-depth tour of the stats for September, and how these influence my real estate crystal ball. We’re starting to see the seasonal adjustments in the figures from September to August with closed homes down 10%; however, there remains tremendous and positive activity! An average of 28 single-family detached homes and attached townhouses and condos closed per day, with a total of 842. 

You mentioned an increase in homes available recently, how is supply and demand looking?

I’m monitoring this closely as supply and demand ultimately influences of property values. The new inventory of available homes on the market every month is exceeding the number of closed properties by 500-600 homes. If the trend of an increase in home supply continues without a correspondent increase in demand, the market imbalance may create stagnation and even downward pressure on home prices. Contrary to popular belief, sellers may actually be able to sell their home for more today than in the spring market if this trend continues.

What price points and areas are selling the best?

 Maintaining our market’s consistency, 76% of all sales were below $250,000 with the strongest activity in the Northeast Heights and close-in West Side, 20% of sales $200-$500,000, and 4% of sales were over $500,000. The upper-end market hasn’t seen the benefits of the real estate recovery that the affordable price ranges have enjoyed. The outlying areas, such as the East Mountains, are experiencing the same slow predicament as the upper-end. In these locations or in these higher price points, the price war and the beauty contest are still critical to keep in mind if you’re a seller. If you’re a buyer, there are still fabulous opportunities to purchase homes of terrific value with historically low interest rates.

As always, who do you know that needs to buy or sell real estate today? Thanks!!

August 2013 Market Report

August continued the trend of increased activity compared to the same month in 2012. However, we are starting to see the seasonal slowdown, compared to July of this year. August averaged over 31 closings per day, for a total of 941 closed homes and condos. It also marked the sixth consecutive month with over 1,000 pending sales, meaning they accepted offers, and these will show as closed in the next 30-60 days. These numbers indicate that Albuquerque continues to enjoy a real estate recovery, primarily in the affordable home sector.

What price points and areas are selling the best?

Statistically, August matched July with 74% of all sales below $250,000, 21% of sales $200-$500,000, and 5% of sales over $500,000. There remains an oversupply of inventory in the upper-end market, and due to this, the upper-end hasn’t seen the same recovery that the more affordable ranges have. The outlying areas, such as the East Mountains, are experiencing the same predicament as the upper-end. In these locations or in these higher price points, the price war and the beauty contest are still critical to keep in mind if you’re a seller. If you’re a buyer, there are still fabulous opportunities to purchase homes of terrific value with historically low interest rates.

So what do you think we’re going to see this fall?

It might surprise our listeners to know that there is still very strong sales activity in the last quarter. There were 2,139 closed October, November, and December of last year, 24 homes sold per day. I expect to see even higher sales in the last quarter of this year. Can I tell you why?

When interest rates change, the number of buyers that can afford to buy homes go down. Currently, we’re experiencing a surge of buyer activity concerned about the future of interest rates. Many sellers mistakenly take their home off the market during the last quarter, not realizing how strong the market remains. Serious sellers that remain on the market during the last quarter compete with fewer homes for these serious buyers’ interest.

As always, who do you know that needs to buy or sell real estate today? Thanks!!

July 2013 Market Report

The start of the third quarter has been strong, with sales for July a 9% increase from June and over a 30% increase from July of 2012! Also, July marked the fifth consecutive month with over 1,000 pending sales, meaning they accepted offers, and these will show as closed in the next 30-60 days. The consistent increase in market stability will hold strong, and hopefully continue to increase before we see the expected fall season slowdown.

What price points and areas are selling the best?

Typically, I report that 80% of sales are below $250,000, however, there was an increase in activity for the $250-$500,000 price point with 21% of sales, leaving 74% under $250,000. There are over 500 homes available priced in the upper end market, over $500,000. With 48 closed sales last month, that reflects 9 out of every 100 upper end homes sold. There remains an oversupply in this market; however, that price point is improving. The Westside and Northeast Heights performed the best below the $250,000 range. Outlying areas, such as Los Lunas, Placitas, and the East Mountains, continue to move slower than I’d like to see; however, this creates opportunities for buyers in those areas!

You mentioned to me that inventory is increasing, right?

Since April, we have seen a monthly increase of over 1,500 new listings available, resulting in an inventory of almost 5,000 homes and condos available as of today. That is important to note, as supply and demand drive values. The sales numbers are impressive; however, with more competition, accurate pricing remains critical to a successful sale. Our market is stabilizing, but we are still in what I refer to as a “price war and beauty contest.” Remember, fair market value has nothing to do with what your home appraised for previously, what you or I want for your home, what you put into it, or what your neighbor sold their house for two years ago.  Fair market value is what a buyer in today’s market is willing to pay for your home based upon other homes available. I can help sellers determine how to obtain top dollar for their home in today’s market!