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!