Of the 847 homes that sold in Albuquerque in June, 271 of them sold at or above list price. At 32% of all sales, that’s just shy of one third of homes sold and a pretty good number to see. It means our market is pretty healthy right now. In fact, the chart below shows you the average list to sell ratio is 97.66%, meaning homes sold in June were selling at a 2.34% discount off the asking price.
Those metrics compare favorably and improve on numbers we saw in June of 2015. Compare that to June’s open to sell ratio of 81.71%, which declined 3.64% from June of 2015’s 84.79%. The open to sell is the difference between the average list price of all homes on the market and the selling price of those that sold. The fact that it’s coming down says Albuquerque’s somewhat hot market is tempting sellers and their brokers to over price a little bit.
Albuquerque is not Denver or San Francisco and our market will still punish sellers who over price. In fact, 360 homes came off the market in June unsold – canceled, expired or withdrawn. That’s 14.1% of the 2,550 homes that were available in June. In June 2015 344 homes came off the market unsold, 11.7% of the 2925 homes available that June.
Considering we’ve seen significantly higher sales numbers this June over last and have fewer homes available, that number should be a warning to sellers. Price well or you’ll waste time on market. Choose your broker carefully and avoid those who are too sunny about the market.
What else… The median price of a home sold in Albuquerque was $195,000, a 2.09% increase over last June’s median of $191,000. Year-to-date (YTD) at the end of June the median was $183,000, a 2.23% increase over the first half 2015 median price of $179,000.
Price per square foot continues to climb as well, with the median price per square foot of an Albuquerque home sitting at $113, a 1.80% increase over last June and only slightly lagging the median selling price increase (2.09%), meaning buyers are still paying slightly more for slightly smaller homes.
Albuquerque homes came off the market at a blistering pace in June with half the 847 homes sold going into escrow in 23 days or less. In June 2015 that median escrow time was 34 days. That rapid pace of sales and the lower available inventory translates to an absorption rate (theoretically, how long it would take the market to sell out if no more homes came available) of 3.87 months, well over a month faster than June 2015.
There was a 22.37% reduction in the number of REO (bank owned) homes sold, from 76 in June 2015 to 59 this June. For the first half of 2016 the number of REOs dropped 9.74% from 431 in the first half of 2015 to 389 this year. Short sales saw sharp declines as well. The decline in REO and short sales is a great indicator of market health and will help prices continue to climb.
The median list price of all Albuquerque homes rose a stomping 10%, from $200,000 in June 2015 to $220,000 this June. The list price increase gets back to what I said above, about sellers getting a bit overconfident and raising their prices above what the market is willing to bear. That’s a recipe for price reductions and wasted time, but hay, confidence is a nice change over years of seller anxiety.
If you want more detailed information than my above chart, info on your own neighborhood specifically, or an analysis of your own home’s value or a home you are thinking about buying, drop me a line.
– Joe LaMastra, Realty One of New Mexico, July 25, 2016