Albuquerque, NM Housing Market Update
The Greater Albuquerque Metropolitan real estate market continues to share the experiences (though comparatively less severely) of most other cities acrosss the country. The downturn that began in the 2007 for our region) has led to an increase in foreclosures and an increase in the inventory of houses for sale.
Conditions brought about by sub-prime lending practices, adjustable rate mortgages and the ensing tightening in lending practices have contributed to an ongoing downward shift primarily in the residential real estate market.
New Mexico's housing market did not enjoy the rapid and inflationary increases of many other states. Ours was a gradual moderate rise in prices. Consequently, the decrease in home prices in the state has not been as great or as precipitous as in others. So while some regions are seeing decreases in home prices as great as 30%, and double digit percentage increase in in foreclosures, in New Mexico, foreclosures have declined . Despite the increase in inventory in the Greater Albuquerue Area, home prices have not plunged. Decline has been gradual-more like the gentle ripple effect that we have come to expect at times of market and economy changes.
We have an eight month supply of homes for sale making it a buyer's market. Yet many buyers are unable to buy. First-time home buyers, invesotrs, and some other sectors of our community are currently having difficulty getting loans because the rules have changed. On the other hand, some who are able to qualify are still not partiipating in the market, but are adopting a wait-and-see attitude. Will prices fall lower? Will the economy get worse? yet other prospective buyers cannot buy because the are unable to sell their current house to move on.
In New Mexico, we are optimistic that the shift upward will return soon because we know that people with jobs are able to earn an qualify for loans to buy houses. The real estate market recovery depends in large part on tNew Mexico's continuing ability to attract business and create new jobs. Those indicators are positive with the recent arrival of new employers like Fidelity Investments, Schott solar, Prudential Investments and an ever-increasing group of small business owners.
Second Quarter Performance
During the last quarter, across the board in the greater Albuquerque housing market, the average price of a single family detached house decreased 3.9 percent from $248,185 in 2007 to $240,514. We sold 27.83 fewer homes than in 2007 with a decrease in monetary volume of 30.67 percent.
All of the above occurred despite a twenty-five percent reduction in the number of new listings that appeared on the market and a 71.7 % increase in days on the market.
The best performing market area for the quarter in 2007 was the Southwest Heights and the worst, the Northwest Heights. The best performing so far this year has been the Northeast Heights and worst performing, Rio Rancho.
The picture for condos and townhouses was different for some criteria and similar in others. Unlike detached houses, both the average and the median price of condos and townhouses increased (average: 2.12%) and (median: 4.67) .New condo and townhouse listings increased by a stalwart 80%. However, fewer condos and townhouses sold in the last quarter (-18%) resulting in a total dollar volume loss of 16.94%. Time on the market was seven times longer for condos and townhouses than for detached houses. The average number of days increased from an average of 21 days on the market to 67 days - an increase of 157%.
Best performing area for condos and townhouses for the period in 2007 was Ladera Heights. This year it’s the Northeast Heights. Worst performing condo/townhouse area last year was Rio Rancho. Worst performing area during the last the last quarter was Uptown.
Eloise Gift, CRS, GRI, EcoBroker Certified
www.eloisegift.com