Albuquerque Home Sales, July 2016

Tight inventory and strong buyer demand was the word in July as prices rose nicely. There was even a bit of strength at the top of the market, pulling the mean home price up a hair more than the median. A significant number of existing home sales in Albuquerque were at or above asking price and distressed sales continue to drop.

A rustic, western themed home in the Albuquerque foothills with modern furnishings and equine art

 

The median selling price of an Albuquerque home was $187,900 in July, a 3.64% drop from June’s $195,000, but up a solid 5.86% over the July 2015 price of $177,500.  By the end of July, the year-to-date (YTD) median home price in Albuquerque rose to $184,445 from last year’s $179,000, a solid if unspectacular 3.04% increase.

Also nice to see was a year over year increase in the mean selling price of an Albuquerque home. The mean home price was up 6.37% from $208,958 in July 2015 to $222,260 this July and up 2.97% from 211,372 to $217,643 YTD. That says there’s some strengthening in the top half of the market and a drop off in low end sales. You can see that in the “Sold Listing by Price Range” charts below.

I’d note that $222,260 mean selling price dropped off 4.08% from this June’s $231,715, but in this case it’s the near 3% increase in the YTD mean that’s most notable.

This is a table view of Albuquerque home sales statistics for July 2016

The average (mean) list-to-sell ratio was 97.67% in July, a hair better than last July’s 97.25%. That means buyers were getting just over a 2% discount off the asking price of a home in Albuquerque this July. YTD that discount stands at 97.50%, which is slightly off 2015’s 97.05%. As inventory tightens and buyers are forced to move more aggressively, we’d expect exactly that – buyer’s paying closer to asking price.

While unit sales were up a solid 9.15% YTD with 4,807 homes sold in Albuquerque this so far this year versus last year’s 4,404, we saw things begin to pull even in July. This July saw 791 homes close to last July’s 775, a 2.06% increase. In fact, pending sales in July, homes that went into escrow during the month, are down 4.64%, active listings are down 8.64% and new listings are down 4.69%.

Note that 275 of the 795 Albuquerque homes that sold in July, sold at or above asking price. That’s 34.77% of July’s sales. Last July 229 of the 775 homes sold went at or above list, which is 29.55%. YTD 1,504 homes in Albuquerque sold at or above list in 2016. That’s 31.29% of the 4,607 homes sold. In 2015 1,208 of the 4,404 homes sold, or 27.43%, sold at or above list. Tighter inventory means buyers are in competition for the best deals and more likely to make full price offers.

 

A chart of price ranges for home sales in Albuquerque for the year to date ending in July 2016

Tighter inventory leads to higher list prices. Not only can that price some buyers out of the market, it will leave those buyers still in the market competing for fewer good homes priced attractively. That helps boost prices and speeds sales even as it knocks some buyers out of the market and slows interest

Which we see in the median 24 days to sell in July, a 31.43% faster pace than last July’s 35 days. YTD half the homes that sold in Albuquerque went off the market and into escrow in 32 days or less. That’s 33.33% or one third faster than the same period in 2015.

Half the homes so far in 2016 were priced at or above $199,993, a modest increase of 2.56% over the $195,000 median in 2015. But if you look just at July, you’ll see a median asking price of $219,000 for all homes listed. That’s a punchy 9.50% increase over last July’s median and is most definitely a factor in the slight drop off of buyer interest.

Distressed sales were down both for July and YTD. While short sales and REOs are still a factor in the Albuquerque home market, their effect is dwindling and we see that in the strong prices this summer.

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, drop me a line.

– Joe LaMastra, Realty One of New Mexico, August 26, 2016