2021 Housing Market Stats: What records were broken in Albuquerque’s Real Estate Market

by | Feb 3, 2022 | Albuquerque Real Estate Talk | 0 comments

2021 Housing Market Stats: What records were broken in Albuquerque’s Real Estate Market

(Transcript Snippet): “Tracy:

So Tego. I know you’re just so excited to get to some stats, right? Yeah. So let’s do it. So the stats that we’re gonna talk about, right. Well,

Tego:

What I wanted to do is go through some of the, the Mar the, the records, right. That were brought in 2021 in the housing market. So

Tracy:

We’re gonna cover housing market records broken in 2021 in New Mexico. Then we’ll put a twist on it at the end and do some national stats. Yeah. Yeah. For sure. So here, go, I’m gonna, I’m gonna quiz you a little bit, median sales price, any records

Tego:

There? Yeah, definitely median sales price, but you’re gonna have at me look at it. Cause I can’t remember ’em right off the top of my head, but you know, I know, I know I should median sales price hit an all time high. We our median sales price in a greater Albuquerque area. And when I’m talking about these, we’re talking about all single family homes. So detached attached, like condos, town homes even throw manufactured homes in here as well, just basically which, which would bring it down. Yeah, yeah. Which, which brings it down. But just to give an idea, the, the median price in December was two, basically $300,000. That is an increase of 18% versus last, last year, December, and in real number, that’s like $50,000. So the, the, and, and actually I take that back. That’s when we’re talking about single family detach, but the, the thing is, I mean, $50,000, people’s,

Tracy:

People’s $250,000 house.

Tego:

No, that’s not the right way to put it. I, I should, I should take that back. Basically, the median and prices have gone up $50,000. That is an all time record. The, the average price per square foot has gone up from, from last year. And that’s up, let’s see percentage wise 19 17% from last

Tracy:

Year is year. And is that a, is that a 2021 record?

Tego:

And that’s a 2021 record. So it, the price per square foot in Albuquerque for the entire year, if you average out the entire year was $164 per square foot. Wow. You know, and if we think back to the, the, the 2008, nine years where, you know, homes were under a hundred, a square foot, now we’re at 164 square foot. And again, that’s every type of home. So there’s homes sell for 300 to square foot and there’s homes sell for 80 a square foot.

Tracy:

So we go back, let’s say 2010, so 11, 12 years ago. Yeah. I remember putting home searches together for clients with price per square foot maximums. We were trying to find kind of the gems that were maybe bank owned or the lower price that maybe need did something. And I would put like a maximum of $80 a square foot and then maybe $90. Yeah. And, and, and we’re at huge numbers now times of change later. Yeah. Yeah. So, but you know, that means a lot of people who’ve been homeowners for a while are sitting on quite a bit of equity. Yeah.

Tego:

Yeah. No. And that it’s that’s for sure. And, and homeowners definitely benefited. I’ve got another story about profits for home, you know, home sellers in 2021. So give us another

Tracy:

Record for 2020.

Tego:

Another record was number of sales, close sales, total close sales. It was an all time record just at 15,000 sales in the Albuquerque area. And that’s, you know, again, all property types, not land, not land, this is just residences. Right. And so, you know, to, to put that in, in perspective, if we compare it to 20, 20, 20 20, which was the, the previous record were up about 3% from, from that year, which

Tracy:

Equates to about 200 homes.

Tego:

Yeah. It’s, it’s, it’s

Tracy:

Not a huge number, 14,800 to 15,000.

Tego:

Yeah. I think it’s like 400, I think was the number. But to give it more perspective of the, the previous record was 2005 and we had just over 14,000 sales. And right now we’re just, just under 15,000 sales. So I

Tracy:

Wish our readers could see this chart that you’ve got pulled up because it’s 2005. And then it goes way down. Yeah. To number of sales and slowly works its way back up to 2020. Well, we

Tego:

Hit the valley somewhere in, let’s say 2009, 2010 with about seven to 8,000 sales. So even in those years when things were not good for home sales, finding loans was tough. Loans were tough. We all know we don’t need to beat that up, but you know, there were still 7,000 sales now that’s half half, but there, there were still, you know, homes still sold.

Tracy:

Right. And we, people still need to live somewhere. Yeah. People still need to make changes and move. And so it goes

Tego:

On the, the other big record. And I think this is, you know, the one, one we all are talking about is the supply of homes. The number of homes on the market has continue decreased all the way back to 2012 is kind of when things turned and, and the number of homes, you know, on average, started to drop all the way through till today. And we started this year with the lowest number of homes on the market all the way back, as far as I’ve got data, which is 2005. And so there’s just about 700 homes on the market at any given time in the Albuquerque area. Right now, when we’re sitting here January 20, 22 we’re gonna talk about, you know, getting your home ready for sale here in a moment. Right?

Tracy:

We are, but let’s talk about this for a minute. The, there was a, a, a realtor, Facebook group, very, very many realtors in this Facebook group. Okay. Talking about what’s happened. Why are there not so many homes for sale? And I never chime in, and I didn’t even read through the thread, but just seeing the headline on it. And I could see there was a lot of posts and comments about it. You know, when I think about it, one of the things that we don’t see, a lot of publicity on is many people who are changing homes, buying a new home, moving somewhere, even maybe taking a rental in a different city because something changed they’re keeping their other house, right? So those houses aren’t coming on the market. A lot of people are keeping them as investment properties. They’re realizing, you know, we’re talking on the radio every week about real estate as an investment. So if you’ve got a, a starter home or a, a move up home, something that’s not luxury that, you know, makes sense to keep as a rental or rent to your family, <affirmative>, they’re keeping them, that’s one of the things that we’ve seen.

Tego:

Yeah. For sure. And that, that is, again, that’s there, there’s so many different things that are putting pressure on the supply of homes coming on the market, you know, all the way from the number of homes being built over the last two, 10 years, which is way behind. Right. You know, I mean, the list lost lots of reasons. I mean, the list goes on or on, but yeah, that’s definitely one of them,

Tracy:

The other thing is a record for 2021 regarding second

Tego:

Homes. Yeah. Yeah. And that that’s we don’t have good local stats on that, but nationally lot of second homes being sold all around the country, people either, like you said buying investment property, a lot of people have done that. They’ve used the equity that they gained because they have huge equity gains in their, their primary residents and Bina and investment property. And then, like you said, people not well that, that won’t really be second home,

Tracy:

Second home. So you think about the few that I know of in our team that we’ve helped. Most of the second homes we’ve helped are people who no longer have to commute to their job. Oh right. And they can have that second home near their grandchildren or near some sort of feature that they always wanted to be at somebody that really wanted to be in Santa Fe. I know one of them was, they just wanted that experience. And so are able to do that because they’re not so tied into where they work from

Tego:

There. There’s the, the, that just reminded me then. Yeah. It’s the zoom town phenomena. So there was this thing at the beginning yeah. Of, of 2020, where everybody’s talking about zoom towns where, you know, people that didn’t have to work from their office, they could have a, a second home in a different community. Lived there, worked there, but it’s it’s, there was another term that came out last year, what was called or 2020 co-primary residents. Right. Was another thing that was happening co-primary residents. So yeah. Surge second homes, for sure.

Tracy:

And so one of the things that that’s caused Tego is less rentals. Yeah. Right. So those people, a lot of them that have those second homes don’t have them available for rent or even short term rent. So those houses are being taken off the market for somebody that needs a primary residence. Yep. Yeah, we’re seeing some of that here. Not huge, but we definitely have seen that in, in, in our team and some of the houses we’ve listed for sale. Yeah. Another record for 2021,

Tego:

Another record for 2021 is the speed of sales or, you know, average days on market. So we saw an average of SI well, let’s let at median, cuz media’s a better way to look at this. Median days on market in Albuquerque for 2021 was four days. If we go to 2020 excuse me, 2020, it was five days. You know, we knew that was crazy. You know, what’s interesting though, even if we go back to 2019, we were at like 20 days, which was still pretty, pretty fast. And again, we’re talking median. So half of them were selling, you know, in 2021, in four days or less,

Tracy:

You know what strikes me too goes, we think back to 2000 9, 10, 11, when there were so many distressed properties on the market and you would think that because we had so many available suddenly and so few buyers at the time, people just weren’t buying. Yeah. You would think that the days on market would be six months or right. But you know, it really wasn’t because if you look at the median, the gems were still selling. Right, right. The houses that were priced for the condition, we still had buyers. Right. Yeah. And it maybe was two months instead of what you might think of longer, but median really tells a story.

Tego:

So the other record was the number of homes that sold over list price. And I don’t, I haven’t crunched the numbers thoroughly cuz that’s a really hard number to extract, but to give, be an idea in 2021, the average price to list price to sale price ratio was a hundred 0.8%. And that doesn’t sound like a lot, but that means that on average, how’s this more, more home sold for over list price than, or under list price. So yeah, that, that, that’s again, another record. And, and what is, I mean, but go

Tracy:

Ahead, tr so for being a buyer, that’s a really important thing to know, right. Because when a buyer, you know, calls and wants to find a house and says, you know, we wanna make sure we get a good deal and we’re gonna offer a little under that they need to know that houses are so for actually list price or above in most cases, in most cases. Right. So they need to, we need to give good counsel so that they can be realistic and ready to go if their goal is to get

Tego:

A house. So a couple more records, some of, some of this is national stuff. One of them you already talked about was the number of investors or sec second home buyers or investors buying homes. In some markets there’s a lot of let’s just call ’em hedge fund type funded entities that are buying a lot of homes and just renting them or building homes and renting them. We’re not seeing that so much in Albuquerque. I suspect there’s some of it, but it’s not, it’s not a huge part of the market. So

Tracy:

We talked about second homes, but investors was a different, you know, that’s two different categories of records in 2021 nationally.

Tego:

Right. Right. Yeah. And then the other really, and just what we’ll wrap up with this was higher price homes or luxury home sales. We’ve seen a huge, huge surge in the number of homes for, you know, selling over, let’s say $600,000 in our, in our market, which we consider kind of the luxury market somewhere five to 600 in above. Well, we kind of raised that,

Tracy:

Right. Well, we had

Tego:

What happened this year. Yeah. No for sure. It used to be, you know, you, you consider luxury home, any home that sells in the top 10% of all the homes sold in a market. And so it’s somewhere in that five, 600,000 range, you know, depending on the part of town. So yeah, that part of this has, has boomed as, as well. So you know, all of that to say that 2021 was a record year in real estate in just about every way it can be measured.