February saw an increase in unit sales across Albuquerque and though there was a slight decrease in the average (mean) price of a home, the median home price in Albuquerque rose a modest 1.53% over that of last February. We also saw gains in the average and median price per square foot of a home in Albuquerque.
The 6.91% increase in Albuquerque homes sold this February is good news, particularly since January saw a dip in sales. This increase is in keeping with steady unit sales increases in December, November and October. Couple that with the 8.40% decrease in active listings (see lower part of table) and you have some hint of the beginnings of a seller market.
The drop in the February average (mean) price of a home is directly linked to weakness at the top end of the market, which can be seen in the Sold Listings by Price Range chart – double digit drops in sales of homes over $400k. The slight, 1.53% February bump in the median price of a home is better than nothing, but I’d rather see a stronger number, especially since February sales nationally are 7.5% above last February. Albuquerque is clearly still struggling with some economic factors that are depressing prices. With the tighter inventory and increased unit sales, we’ll see if things begin to turn.
Price per square foot working its way up in both mean and median for February and for the first two months of the year. This is good, and it probably hinges on the reduction in foreclosure (REO) sales, which have dropped 30.59% for February and 22.64% for the beginning of the year.
The mean and median days to sell are fewer, meaning the pace of sales is improving. Right now, the median days for a home to go under contract is just over two months. If you’re a seller, pay attention to that number – you want to hit that or slightly faster to get your best price.
We’re also seeing the median asking price of a home going up. It was $199,900 in February, a 8.05% bump over last February. That indicates there was some seller confidence factoring into prices in February and possibly even the reduction in REO listings is helping raise prices.
That higher median asking price also hinges on the decrease in lower end listings, which can be seen in the Active Listings by Price Range chart.
If you’re thinking about selling or buying a home and would like a more specific analysis of a particular area, neighborhood or home, drop us a line and we’ll put one together for you.
– Joe LaMastra, March 26, 2015