Home sales in the UNM area of Albuquerque have become a bit tweaky. Unlike citywide Albuquerque, which saw a 4% increase in the number of closings in May, the UNM area saw a 5.88% decrease in sales from 51 in May of 2015 to 48 this May. That could be a function of buyers being unhappy with their choices in the tighter inventory of homes or it could be something else. Let’s run the numbers –
The average or mean price of a home sold around UNM dropped in May 6.80%, down to $241,767 compared to last May’s $259,402. That continues a trend we saw in March and April. The mean price can be easily skewed by sales at the top and bottom of the market, which is why the median is preferred in real estate analysis. However it’s still a number worth noting since in Albuquerque overall, the mean price of a home rose. In the case of UNM, it says there’s been considerable weakness at the top end of the market.
That being said, the median price of a home sold in the UNM area rose nicely in May to $233,000, up 3.56% over last May’s $225,000. That actually outpaces the greater Albuquerque median price gain of 2.31%. So UNM is weak at the top, a bit slow, but pretty solid in the middle. The year-to-date (YTD) numbers through the end of May are similar, with a lower mean and a not quite as robust median gain of 2.32%.
UNM area homes also sold rapidly in May. Half the homes that sold around UNM spent 28 days or less on the market before they went into escrow. That’s a 28.21% drop from last May’s 39 days. The YTD marketing time however, was more or less unchanged, with half the homes sold in the first five months of 2016 going into escrow in 50 days or less, a 2.04% increase in marketing time over last year’s 49 days.
New listings are down 14.12% around UNM with only 73 homes hitting the market in May versus last May’s 85 and overall inventory in May was down as well, from 208 available last May to 184 available this May. That in itself likely explains the faster market time – buyer’s are in competition and moving quicker to make an offer.
Another important note. When I discuss the UNM area I’m talking about neighborhoods stretching from Victory Hills and the Southeast Heights bordering Gibson Blvd, all the way up to North Campus, Altura Park and Netherwood along Indian School Road. What’s not in the chart above is a pretty distinct discrepancy for the areas above and below Central Ave.
Essentially, the Southeast market is doing very well and the Northeast market is dragging the numbers down. Areas like Victory Hills, University Heights and the south half of Nob Hill are booming right along. South of Central the median price of a home rose a whopping 10.14% from $181,500 in May 2015 to $199,900 in May 2016. The mean home price rose 7.03% from $198,432 in May 2015 to $212,385 this May.
In that same period to the north, in areas like Summit Park, north Nob Hill, Altura Park, etc., we saw the median home price drop from 287,500 last May to $239,000 this, a 16.87% decline. The mean home price dropped 13.25% from 305,022 last May to $264,200 this.
Both areas saw a home or two fewer in sales this May over last as well. I want to stress that we’re talking about roughly two dozen sales in each area each month, and that raises statistical significance issues – but the numbers are there and they are curious. I’m going to dig deeper into this after June.
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, June 23, 2106