The UNM area of Albuquerque has always been a powerhouse when it comes to home sales and as we review our sales summary for December and the year ending 2014 that is pretty clear. We saw a dip in the average (mean) price of a home for December, but the median price for December is up and both average and median home prices for 2014 are solidly above those of 2013.
UNM Home sales have declined by unit for both December and for the year. The 31 homes sold in December was an 11.43% drop from the 35 sold in December of 2013 and the 350 homes sold in all of 2014 was a strikingly similar 11.84% drop from the 397 homes that sold in 2013. Hard to say why fewer homes have sold, though that’s in keeping with area and national trends.
Nationally, we saw a 3.14% decline in existing home sales, with 4.93M sales in 2014 and 5.09M sales in 2013. Sales of homes in the western U.S. declined 7.56%, from 1.10M sales in 2013 and 1.19M sales in 2013. That give us a little better perspective on what’s happening in the UNM area. Nationally, inventory is down about a half percent and it’s suggested that’s driving the decline in unit sales. In the UNM area inventory is up (see “Active Listings” in the chart below), so that’s not what’s driving sales down.
On the other hand, prices are up nicely for the homes that did sell in the UNM area. We see that dip in the average price of a home in December, which is really just a result of a couple less high dollar homes selling. But the median price of a home sold around UNM is up 2.27% for December, from $220,000 in December of 2013 to $225,000 this past December. For the year, the median price of a UNM area home is up a solid 6.28% over 2013 and we saw a sharp 8.59% increase in the average price of a home as well.
For perspective on those prices, nationally the median price of a home rose 5.87% and in the west, the median price rose 6.92%. So prices for homes around UNM out performed the nation by a hair and under performed the west by a hair.
UNM easily out performed Albuquerque in general, which saw anemic increases of 1.39% average and 2.34% median home prices.
Also nice to see is the increasing price per square foot that sellers are getting for homes around UNM. In 2013 both the average and median price per square foot was $141. In 2014 the average increased to $148 and the median to $147. Some of that certainly had to do with the steep decline in foreclosure (REO) homes and short sales, particularly the REOs, which usually sell at much lower price per square than private sales due to condition. From 22 REOs in 2013 to 6 in 2014 and from 16 short sales in 2013 to 5 in 2014, the drop in distressed properties helped bring up prices.
The average and median list price of homes in the UNM area looks to have held steady for 2014, with virtually no change. In fact, in December we saw list prices decline on 2.24% average and the median price of a home listed for sale was $225,000, down 3.03% from the December 2013 median home asking price of $232,034.
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, January 22, 2015