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!!
