Even with that slight drop in the median price of a home sold in Albuquerque this February and even though the trend held at least for the YTD numbers in the first two months of the year, it’s important to note the selling price per square foot of ABQ homes actually increased by about 3% at both the median and mean. That suggests buyers were paying a bit more for smaller homes, at least in the lower half of the market.
The increased mean selling price of a home also says we had some strength in the upper half of the market, which can be seen in the high home sale for February of $1,450,000. That exceeded last February’s high of $850,000 and also represents a YTD high over last year’s $1,325,000.
Homes in Albuquerque are still selling at just under 97% of list price, a 3% discount, which is virtually unchanged over last year. The ratio is wider if you compare the average sale price with the average original list price (before reductions), but still, not very far of last year.
Homes are selling faster, the February median days on market of 61 an 11.59% faster pace than in 2015. Factor in January and we see homes selling about 18% faster for the year to date. Almost certainly, this is a result of the fewer homes available in Albuquerque amid strong buyer interest.
List prices are a bit harder to read. Original list prices are up both mean and median, and at 5.50% and 8.09%, sharply so. We see a slight decline in the median list price of homes that actually have sold, but that fits in with the trend of buyers still hunting deals and buying price – remember homes are still selling at a higher price per square foot.
February saw a sharp, almost 30% increase in pending sales (homes in escrow) from 602 in Feb 2015 to 774 this year. Add to that the nearly 16% reduction in inventory and not enough new listings hitting the market and we should continue to see absorption rates in the sub-four month area, indicating somewhat of a seller’s market. If the trend continues, we’ll see more sharply rising prices.
If you’re interested in the value of your home or neighborhood specifically, drop me a line and I’ll fill you in.
– Joe LaMastra, Coldwell Banker Legacy, March 15, 2016