A mixed bag in Albuquerque homes sales this January, with fewer homes sold at higher average prices. Let’s look at some of the factors involved.
We sold 389 homes in January, a 4.42% reduction over last January. The median selling price of an Albuquerque home was $169,900, a 2.97% increase over January of 2014 and the median price per square foot of a home in Albuquerque held steady at $100. The sales volume, the total spent on existing home purchases in January was just about equal to January 2014 at $80M.
Our most expensive home sold this January was $1,325,000, a nice increase over the $740,000 high sale in January 2014. The 1.3M home was located in the Bosque, but on the west side near Paseo del Norte and Coors on Westdale Way.
The cheapest home nabbed in the Duke City this January went for $36,874, paying far above the cheap sale of $9,800 in 2014. Actually there were two homes sold at that low price, one on Lewis Ave just east of the rail tracks near Bridge Street and the other on 63rd Street near Central and Coors.
The average listing sold at 97.17% of the asking price, a slightly better ratio than 2014’s 96.49%. It’s took a few more days to sell a home this January over last, with the median days on market sitting at 65. Keep in mind that 65 days is the number of days before a home goes into escrow and the actual closing would be another 30 days or so.
A couple factors are involved in the fewer sales at better prices. First, we saw fewer REO (foreclosure) and short sales in Albuquerque this January. January 2014 saw 74 REOs and 28 short sales and this January we saw 64 REOs and 16 short sales. That’s in keeping with the significant decline in REOs and shorts we saw overall in 2014. Less of these distressed properties means stronger prices.
We also see a tighter inventory, with 2717 homes available on January 15th this year a 4.60% decline versus 2848 homes available in January of 2014. There were only a few more homes listed in January over the prior year. As the inventory tightens prices can be expected to rise, which seems to be the case. Note we also had a nice bump in pending sales this January, with 590 homes in escrow.
As REOs diminish and inventory tightens we’re also seeing rising list prices. The median list price of a home on January 15th this year was $190,000, 3.84% above the median price of a home in January 2014. Reasonable seller confidence, which this seems to be, will add to upward price pressure. A glance at the selling price range table below shows a kind of mishmash in selling range, but we do see 6 homes selling above $750,000 this year with none last and we also see some strength in the $160,000 to $250,000 range, where our median price draws from. The weakness in the $250,000 to $750,000 range does not show in the year end 2014 numbers so we might only be seeing a temporary glitch. Another couple months will tell.
Further, if you look at the below table of active listings by price range, you see a solid drop in listings below the $140,000 threshold. Fewer distressed homes on the market and seller confidence shows pretty clearly there and in the fairly solid gains in pricing above $140,000. Keep in mind not only are fewer homes available in the low range, but even the scattered dips near the median price ($160,000 – $179,999 and $200,000 – $249,999) are likely to result in increased median selling prices.
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, February 26, 2015