We’re steaming along pretty well in the Albuquerque real estate market with the pace of sales this March outperforming last year by a almost 14%. We sold 702 homes in March 2016, a 13.55% increase over last year and the first quarter of 2016 saw a 16.03% increase over the first quarter of 2015.
Price appreciation has not done as well, with a median home price in March of $179,000, just 2.40% above the same month last year and the first quarter median sale price of $175,000 only a skosh higher than 2015’s $172,000.
There’s a bit more strength in the selling price per square foot, with both March 2016’s $107 up 2.88% over March 2015’s $105. For the entire first quarter of 2016 we see the price per square at $105, a 2.94% increase over 2015.
Inventory was down in March, with the 2,299 available homes in Albuquerque a 14.44% decrease over what was available last year. More listings came on the market in March compared to last year, but pending sales outpaced new listings by more than double, keeping inventory low. For the first quarter of 2016 it’s a little more nuanced. Overall inventory is down 4.86% but new listings increased by virtually the same number. That would be an offsetting event, but pending sales are up 18.98% in March and clearly sales are exceeding new inventory.
On average homes are selling at about 97.44% of list price, a 2.5% discount, and 218 homes sold at or above their list price in March, sharply higher than the 148 that got their asking price in March 2015. Since our over all sales increase was about 14%, that 47.30% jump in homes going for asking is a significant number. A similar trend held for the first quarter 2016 with 475 homes selling at or above list, a 29.78% increase over 2015 and comparing well with the 16% increase in overall sales.
The increase in homes selling at list price and the minor increase in actual selling price says sellers are pricing conservatively and buyers are feeling the tighter inventory. The result is buyers are more willing to meet seller’s asking prices to get the homes they want.
Homes are selling faster this year. The median days on market for March was a rapid 46 days, 19.30% faster than March 2015. In the first quarter the median days on market was 52 days, 22.39% faster than 2015’s 67 days.
REO and short sales are down for the month and quarter and list prices are up.
If you are a seller, all of this is great news and if you are a buyer, not so much. Buyer’s need a skilled broker who can give them solid advice on the specific Albuquerque market they are hunting in and help them craft clean offers that are attractive to sellers without compromising their own position.
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, April 25, 2016