UNM Area Home Sales July 2016

We’ve seen weakness in the UNM area home market over the first part of 2016, but as we move into summer there are signs of strengthening. The median home price came up in July and the year-to-date median is also up. Inventory has tightened, but buyer demand has also lagged. This may be keeping prices from running up more sharply.

The main, Central Ave entry to the University of New Mexico, showing George Pearl Hall

The median price of a UNM area home was $238,000, down 1.65% from June’s $242,000 but up 4.62% over last July’s $227,500. Year-to-date (YTD), homes in the UNM area are selling higher than last year, with the median price of $231,250 through the end of July up 3.47% over last year’s $223,500.

Forty three homes closed in July, same as June, but down significantly from last July’s 52 closings. However, so far this year 266 homes have sold in the UNM market and that’s a 6.40% increase over the 250 homes that sold by the end of July 2015.

The median price per square foot is actually down this July over last at $151, a 5.03% drop from $156. The mean price per square foot is up 2.00% from $150 in July 2015 to $153 this July. With only 40 or 50 sales, it’s debatable which is the important number. YTD price per square is virtually unchanged, whichever metric you look at, with the 2016 median of $146 up .69% from 2015’s $145. The mean stayed the same for both periods at $147.

This is a table view of Albuquerque’s UNM Area home sales statistics for July 2016

No short sales in July, same as last, and still none YTD compared to last year’s 5. No REO sales this July compared to 1 in June and 2 last July. YTD we’ve had 9 REO sales, a 18.18% drop from last year’s 11. While there are still some distressed properties lingering in the foreclosure process, they are becoming less of a factor in the UNM area housing market.

It took 20 days or less to put half the 43 homes that sold into escrow and get ‘em off the market. That’s unchanged from June and two days faster than last July’s 22 days. It’s taken 35 days or less to get half the homes off the market YTD, compared to 39 days in 2015. That’s not a huge improvement, but it’s solid progress.

In mid-July there were 192 active listings compared to 193 this June and 222 in July 2015. That’s most definitely a tighter inventory, but the pace of sales clearly slowed in July. We had those with 43 closings to last year’s 52 and the number of pending sales dropped to 40 this July from last July’s 49.

That may be less an indicator of reduced demand as it is a function of the tighter inventory leaving fewer great choices for buyers. Less choice can cool buyer interest. Less choice also forces buyers to move faster on the good deals and we do see that reflected in the faster off-market times.

If you want more detailed information than my above chart gives, info on your own neighborhood specifically, or an analysis of your own home’s value, or one you are interested in, drop me a line.

– Joe LaMastra, Realty One of New Mexico, August 25, 2016