A Closer Look at the Albuquerque Housing Market for July 2023: Key Findings and Trends
Welcome back to another Albuquerque Housing Market Update! In this episode, I take you through the latest data from July. Buckle up, and let’s dive into what I found.
Fast-Paced Albuquerque Housing Market (Still)
The Albuquerque housing market continues to be a hotbed of activity, with an impressive statistic – half of the homes sold within just six days of hitting the market! This trend is especially prevalent in the lower price points. However, it’s important to remember that not every home sells instantly. But there are strategies that sellers like me can use to ensure a quick sale. Homes that are priced correctly, in desirable condition, and located in sought-after areas tend to fly off the shelves.
Mortgage Rates and Reluctance to Move
Let’s talk mortgage rates. A staggering 70% of homes with mortgages in the US have an interest rate of 4% or less, and 26% have rates of 3% or less. Conversely, only 3.7% of homes have rates above 6%. The low mortgage rates can be seen as a double-edged sword. While they make homeowners like me reluctant to sell and lose those low rates, they’ve affected the number of new listings in the market, leading to a decline over the past year.
Supply and Demand for Albuquerque Homes
In the more affordable price points ($400,000 and under), there’s a limited supply of homes, with about a one-month supply available. But in the higher price points, there’s a bit more breathing room, creating more of a seller’s market. The average number of days a home stays on the market has risen by 66%, but it’s still relatively short compared to historical standards. Looking at the median days on the market offers a clearer picture, and it’s clear that lower-priced homes tend to sell 2 times faster than their pricier counterparts.
Market Recovery in 2023
Albuquerque’s housing market, like many across the US, is on a recovery trend. After a minor setback, the market is showing renewed vigor. The housing market dipped during the colder months but has since seen an uptick in activity. Last year, sales took a bit of a hit, but now they’re racing to match last year’s figures. Premium sales are up, while sales at lower price points are down 30% compared to the previous year.
Limited Inventory of Homes For Sale in the Albuquerque Area
A major reason for the reduction in listings is the sheer number of homeowners enjoying low mortgage rates, making them hesitant to sell. There’s been a significant drop in the number of new homes listed, and when paired with the limited inventory, it impacts the total number of homes available in the market. Demand has slightly tapered off this year in comparison to the last, but there remains a tight supply of homes on offer.
Home Price Appreciation in Albuquerque
The cost per square foot has hit a new all-time high of $202 across the board, and home prices have seen an uptick of around 6% from last year. It’s crucial to note that there was a considerable price reduction last year, probably around 4-5% from the zenith in January. Sales took a hit from the rising interest rates in 2020, resulting in a market deceleration. This year, sales have decreased by 17%, with only 861 homes changing hands in the entire metro area.
Conclusion for Mid-Summer 2023
The Albuquerque housing market remains lively and in constant flux. Regardless of the shifts, a consistent upward trend in prices over the years can be observed. The remnants of the great recession still haunt some memories, with prices topping out in 2007, retreating until 2012, and seeing year-over-year increases from that point onwards.
Thank you for reading this months Albuquerque Housing Market Update! Remember, all the graphs and market information discussed can be viewed on our website on the Albuquerque Housing Market page. If you have any queries or are considering buying or selling a home in Albuquerque, please get in touch with us at Venturi Realty Group. Keep an eye out for more updates and insights on our Albuquerque Real Estate YouTube page.