February 2014 Market Report

The Greater Albuquerque Association of Realtors reported 609 closed single-family, detached homes and condos and almost 800 homes that went into pending status, meaning they accepted contracts. These will show as closed in the next 30-60 days, so we are headed for another positive spring market. 

What price points and areas are performing the best?

We saw a slight increase from the consistent 75-80% of all sales below $250,000, with 81% of all sales in February under that magic 250 mark. $250-$500,000 represented 16% of total sales. Just 3% of total sales were from $500-$1 million, without any February closings in excess of the $1 million mark. The upper-end market just hasn’t seen the strong activity that the affordable price ranges below $250,000 have enjoyed. The under $250 magic market was hottest in the Northeast Heights and close-in Westside. The outlying areas, such as the East Mountains, are experiencing the same predicament as the upper-end, supply and demand have just not yet reached their balance. 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. 

Can you tell us more about the supply and demand ratios?

Overall, the market indicators are positive for the spring/summer market; however, I’m keeping a close eye on supply and demand. February added almost 1,400 new listings, and with almost 4,500 homes & condos available, inventory is climbing and the pending sales demand isn’t keeping pace just yet. My prediction is that we will start to absorb more of this recent inventory over the next few months. Whether you’re a buyer or seller, there are still great opportunities to take advantage in today’s housing market.