Existing home sales in Albuquerque have made slow and steady selling price gains over the course of 2015 compared to 2014 and though unit sales were weak at the beginning of the year, they have accelerated nicely as we moved through spring and into summer. A correspondingly sharp reduction in available inventory as the year progresses is certainly adding to upward price pressure and benefiting sellers, while buyers who are smart enough to move now will still profit from continued low mortgage rates and a market that is still undervalued.
June saw a 23.39% jump in home sales over last June and for the first half of 2015 compared to last year that increase is still a healthy 13.54%. That jump in sales says there’s a fair amount of buyer confidence in Albuquerque right now, or at least pent up demand is being acted on. As buyer interest increases we’re seeing a nice, solid corresponding increase in home prices, with June showing a 6.11% jump in the median price of a home in Albuquerque and a 7.12% increase in the mean home price. For the first half of 2015 homes increased in price 3.53% on the median and 2.88% on the mean in the Duke City.
We’re also seeing some strength in the value per square foot of a home, at least in June, as the median price per square foot of a home went up a solid 5.71% to $111 and the mean rose 4.55% to $115. For the first half of 2105, the square foot home price gain is a far more modest .96% on median and 2.80% on mean, but it’s there and it’s good news for sellers.
June saw a 17.28% drop in active listings compared to last June, driven by the jump in closings and a corresponding lack of new listings. As closings have risen sharply, with 3613 Albuquerque homes sold in the first half of 2015 compared to 3182 homes sold in the first half of 2014, the total number of active listings during the first half of 2015 has actually declined slightly from what was on the market in 2014, to 9183 from 9302.
That should encourage further price appreciation as we move through summer and sellers and their brokers are keying in on that, pushing opening list prices (really, the original list price of all homes still on the market in June) up more than 10% on both the mean and median. The list price on sale in June, the actual list price of homes that went into escrow and closed, was a few points less than the increases in opening list prices, but of course closely followed the increased selling prices.
June also saw homes sell at a very small discount, with the average selling price to listing price ratio 97.95%. That means the average home that sold in June did so at just a skosh over 2% less than the asking price. The number of homes in Albuquerque that sold at or above the list price increased to 232 in June, a 34.10% increase over the 173 homes selling at or above list in 2014 and well ahead of the simple increase in June sales overall (23.39%).
We’re saw a solid reduction in REO (foreclosure) sales and short sales over the course of the first half of 2015 even though we did see a slight uptick in REO closings in June (up 5.56% from 72 in June of 2014 to 76 this June).
I’ve already pointed out the decrease in active listings, but note also that June saw a sharp, 34.70% increase in pending sales (homes in escrow) and a slight drop in new listings. That says we’re likely to see continued price appreciation and buyers frustrated by fewer choices.
If you’re thinking about selling or buying a home in Albuquerque 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, July 23, 2015