It is the week after Thanksgiving, 2022. I hope you had a great Thanksgiving. It is Tego Venturi of the Venturi Group with Keller Williams Realty here in Albuquerque, New Mexico. Looking at the market data, the live housing market data just updated over the weekend. It gives us a weekly look at what is going on in the housing market.
These are new reports that I’ve recently got. What we have here, we’ve got it broken down by 2018, 2019, 2020… OK, yeah, you get the point. And what we’re looking at is I’ve got a whole bunch of different charts that I’m just going to paint the picture of where we are in our real estate market in Albuquerque. This is all live single family homes for sale in the Albuquerque area.
So not what happened in the past, what’s happening right now on the ground. So we’re looking at the Market Action Index, which is an indicator of the supply demand ratio. The higher the numbers. So if we go back here to 2021, it peaked out at 100. Can’t get any higher than that.
In general, something around 30 is considered a balanced market. All the way back to all the data we’re looking at here, which is all the way back to 2018. We’ve always been in a, “sellers market” in the traditional sense. Home prices have gone up every year really since 2013 in the Albuquerque area, some years more than others, but that’s where we are now. This year, 2022, we had a very busy market in the spring, summer, and then it slowed down quite a bit.
We had interest rates go up quite a bit. And now what’s happened is this Market Action Index has pulled back. However, it’s still indicating a seller’s market. But let’s dig a little bit deeper and see what we can find there. If we look at inventory, this is the number of homes on the market in real time and the black line, let me we hover on this one so we can see it better. The black line here is this year. You can see we are ahead of 2021 and 2022, but still substantially behind 18 and 19. So the number of homes on the market is still at a really low level, not as low as what we had earlier in the year. And it’s come back up, but it hasn’t skyrocketed back up.
It’s actually been relatively flat since that kind of May June timeframe. Now, if we look at the number of homes coming on the market, it’s an interesting story here because it’s definitely slowed down in the Albuquerque market since, let’s say, June. We really peaked out in May, pull back in June, July, August, and we’ve had these interest rates rises, increases that have made the really pull some people out of the market. So demand has slowed down. The thing is, the number of homes on the market has also been really low if we look at 2022, this is the 90 day moving average as opposed to the seven day moving average and it’s been really low.
Not a lot of people are putting their homes on the market historically compared to historically. So we do see this trend and we’re going to see how this goes through the winter. You can see here seasonally, the number of homes coming on the market generally slows down as we go through the winter months and then reset and starts to come back on in February and March. Median list price, pricing. Let’s talk about pricing.
Oh, let’s talk about pricing. I got medium list price and price per square foot here. Let’s look at both of these. Prices peaked back here. We’re in 2022, let me pull that back up 2022.
We had a peak back here in the May timeframe $426 and we’ve now pulled back and took another little bit of a step down this last week to $390,000, which is actually slightly below what we had same time last year. Now, let me make this clear. This is list price, median list price. So this is of all the homes on the market, the halfway point between what all the homes are listed at. It is a really good indicator of what people are feeling like with pricing on their homes and the real estate agents that are helping them when they put a price on the home.
Prices have definitely peaked out in May, June, have been pulled back maybe a little bit flat since. But if we look at it from a price per square foot standpoint, we don’t see quite as much of a pullback. And this is a better kind of overall average of what prices are doing. We’re now at 196 /sqft this year. But look at this over the years here, we really had a big run up from 21 to 22, so 156 in 2020 and now we’re at 196 sq ft.
So home prices have really increased over the last few years and have taken a breather here in the last six months or so. Another indicator of where prices may be going in the future is median price of new listings. How are people feeling about the market as they put their homes on the market? We did see a pullback this week a little bit lower than we’ve seen really throughout the summer, not uncommon this time of year. If we kind of pull back here so we can see it, we see like in 2020, we saw it ticked down quite a bit right there.
2019 as well, same time of year. So we’ll see how this shakes out. We do see a little bit of price compression in the last few months for sure. Another indicator of where sellers are, how they’re feeling about the market is the number of properties that have had a price decrease of all the homes on the market, what percentage of homes have had a price decrease. And we did hit a new high this year just now at 43%.
That’s over the entire Albuquerque area. 43% of the homes that are on the market have had a price reduction. That’s pretty high. Now, remember, we’re going from these elevated prices though here over the last few years. And just one last thing on price decreases.
This one is a little bit different. It really depends. Real estate is local, and it can be local from a city of Albuquerque compared to another community. Let’s say El Paso or Tucson are ones that we always get compared to. But it’s also neighborhood by neighborhood, zip code by zip code.
And if we look at price decreases by certain zip codes, Beralillo area 87004 had the most price reductions, about 70% of them of the homes on the market. Now, there’s not a lot on the market in that area, but just to give you an idea, so that area, Bernalillo, Downtown 87108, 87110 near Northeast Heights, more price reductions. 87122, that’s one of the most expensive zip codes in Albuquerque. That’s North Albuquerque Acres. 56% of the homes have had a price reduction.
However, if we come down here, 87111, it’s right about that average at 46%. If we come down to the North Valley here, eight, 87107. Only about 30% of the homes that are on the market have had a price reduction Placatis, for example, only 37%. Rio Rancho. North Rio Rancho 87144. Only 38%.
So it depends on where it is. It depends on what the supply is like in that area and of course, what the demand is like and what the price points are as well. So lots of data there.
If you want to take a look at this, go to ABQhomeprices.com. This is not very pretty. Here, let me fix that. This is the report you can look at in real time and go through all these metrics that we just looked at. Little bit different display, but it will give you an idea of what’s going on in the market.
If you got any questions, give us a shout. Venturi Group. Keller Williams Realty 505-448-8888.