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.
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.
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