Westside of Albuquerque home sales are trailing the overall Albuquerque real estate market in almost all statistical categories for the month of June as well as for the first half of 2015, though it has improved on its own performance over last year last year both for the month and for the first half. The median price of a home on the Westside is up as is the number of homes sold. In fact, the one place the Westside did outpace the entire city was in the number of sales for the first half of 2015.
There were 201 homes sold this June, a 3.08% increase over the 195 homes that sold in June 2014, which compares poorly with the whopping 23.39% jump in home sales greater Albuquerque saw (786 homes in June 2015 vs 637 homes in June 2014). However, for the entire first half of 2015, the Westside saw a 13.99% increase in sales over 2014, from 858 in 2014 to 978 in 2015, which slightly outpaced greater Albuquerque’s 13.54% increase (3615 homes in the first half 2015 vs 3182 in 2014).
The median price of a home on the Westside was 185,000 this June, a 3.50% increase over last June, and for the full first half of 2015 the median price of a home was $178,000, a softer 2.30% increase over first half sales in 2014. The mean price of a home was $194,600, virtually unchanged from June 2014’s $193,846, indicating weakness at the top of the market in June. For the first half of 2015 the mean price of a home was $194,195, up 2.21% over the first half of 2014 and more closely mirroring the first half median price change.
For June we saw the median square foot price of a home pegged at $103, a 4.04% increase over last June while the mean square foot price held even. For the first half of 2015 the median square foot price was $99 and the mean $100, 2.06% and 3.09% increases respectively.
The pace of sales was faster in June but slower over the entire first half. June saw a median days to sell of 35, a nice 23.91% jump over last Junes 46 days and a mean 68 days to sell, a still respectable 6.85% jump over June of 2014’s 73 days. The first half of 2015 tells a different story, with a slower median 57 days to sell versus the first half of 2014’s 53 days. The mean days to sell went from 84 days in 2014 to 88 days in 2015.
If you are a seller, what this is telling you is that half the homes sold on the Westside of Albuquerque in June went under contract in 35 days or less and over the course of the first half of 2015, half the homes went under contract in 57 days or less. That’s very close to the greater Albuquerque pace of 34 days in June and 51 days during the first half.
Also in keeping with the overall Albuquerque trend, we are seeing tightening inventories on the Westside. Pending sales in June, homes that are under contract and waiting to close, rose 35.93% to 227 homes over last June’s 167 homes. That’s a lot of buyer activity. Besides those pending sales there are 831 homes currently available for sale on the Westside, a 15.71% reduction over the 986 homes that were available in June of 2014.
That vigorous buyer activity and reduction in inventory says we should see continued price strength and perhaps even stronger increases as we move through summer. As the Fed signals a real possibility of interest rate bumps in the fall, the sales pace is likely to stay strong as buyers who’ve been sitting on the fence decide to make their moves before mortgage rates start to rise.
If you’re thinking about selling or buying a home on the Westside and would like a more specific analysis of a particular area, neighborhood or home, drop us a line and we’ll be happy to put one together for you.
– Joe LaMastra, July 28, 2015