Albuquerque Real Estate Market Update for November 2020

If you’re wondering what’s happening in the real estate market in Albuquerque, New Mexico, you’re at the right place. Hi, this is Tego Venturi Venturi Realty Group, Keller Williams Realty here in Albuquerque. We have a very large real estate team here in Albuquerque and are blessed to be able to help hundreds and hundreds of clients every year with their home needs. What I want to do, and what I specialize in, is what’s going on in the market. What, What exactly is going on in the Albuquerque real estate market? We see a lot of high-level data. We see news stories. We see headlines, we see this with you that, but there’s so much to take in and absorb. I want to try to take all of that stuff that I take in day after day after, day on what’s going on in a real estate market. And put it back out to you here. As a part of today, what I want to do is share exactly how you can see this information. What I’ve been doing over the years is put these videos out. But this time today, what I want to do is show you some of this data and where you can find it right on your, our website. So I’m on our website. Let me move that out of here. So we’re at welcomehomeabq.com. If you go to the market tab I’m gonna spend some time here in the market trends by price range. And that’s what we’re in right now, but I also have some real-time market conditions where you can get reports on what exactly is happening. And this is a weekly report that shows you real-time. What’s happening with the active inventory by zip code or by city in the area. Also have some long-term trends. So you can take a peek there, if that, if curious. But I’ve got a couple of projects I’ve been working on, and I put them up on the website today to share with everybody. I mean, I’ve kind of been working on these and looking at them in the background. I figured, well, I might as well just share them. It’s inventory tracking, you know, where are we at an inventory? Cause that’s really the big story right now with real estate. And when I say inventory, we’re talking number of homes for sale, and then the luxury market, because that’s, there’s been some extraordinary stuff happening there, but let’s take a quick look here at the November data.
Again, I’m on page market trends by price again, welcome home abq.com and just come here, I’ll leave different tabs are the, the, the different metrics that we’re looking at. And this particular chart is the most recent month, which in this case, November versus November a year ago, November two years ago. So if we look at close sales and this is broken down by price range under two, two to four, four to six and six and above 600,000 and above, and then this is all price points. So I’ll just look at that real quick, but you can always come back here and dig in closed sales in Metro Albuquerque area up 20, almost 21% versus November last year. And I want to make very clear. I’m saying Metro Albuquerque I am not including all the outline areas that are in our MLS system because I wanted to get a really close picture of what’s happening just in our Albuquerque and all our bedroom communities around our cookie. So that’s what we’re looking at there the number of homes for sale. This is really the big story right now. Very low number of homes on the market. Ask any realtor, ask anybody that’s been shopping for homes. They’ll tell you not much to choose from out there, especially in the lower price points. If you look at the number of homes for sale under 200,000, only 142 homes in Metro Albuquerque. So, you know, those starter homes, it’s,
It’s pretty, pretty competitive.
About there. So if you are going to be, you know, looking for homes in that price range, I mean, they’re there, you just have to be ready to go and understand that you’re going to be probably in a bidding war. You know, it’s going to be competitive. So you need a realtor that really understands how to, to make those offers, work. Those offers and negotiate hard for you to get you that deal because they can be very competitive. Just to give you an example, we’ve had, we’ve had situations where we’ve had 20 plus offers within two days of a home being on the market. That’s the kind of market we’re in right now here in Albuquerque pending sales November really strong, again, up 20% versus last November. Usually, November, October, November is when our market starts to slow down seasonally. We’re not seeing it so much this year, just because of, well, we had a pause back in, let’s say March, April.
But now, you know, ever since then, it’s been very strong, new listings, not getting a lot of help there. We could use some more homes coming on the market, you know, kind of even with, with last year. And it’s, you know, less than two years ago, a month’s supply, this is the metric, you know, if we want to measure supply versus demand. So this is, you know, a number of homes on the market for the current demand under 200,000 super low 0.4 months supply you know, really across the board four to six, you know, like one month supply okay.
To me, two to 4.8,
Four to six 1.8 months supply. And even that luxury markets, $600,000 in a bluff above three months supply,
The general
Consensus is that five, six months supply is considered a quote balanced market. You know, not advantage buyers, not advantage. Sellers are another way to say that buyer’s market seller’s market. You know, we’re currently in a sellers market across really all price ranges, all the different cohorts in the Albuquerque area right now, obviously there’s going to be outliers. But those are more specific to very specific homes and maybe some challenges with that specific property, not the market itself. So if something’s not selling, it’s something about the property it may be a little price, still, a little too bit too high. You know, those are kind of the things or, or it could be a very unique home and the right buyer just hasn’t found it yet. And that does happen. Average days on market, super low, I mean, across the board, 18, 18 days on the market for all.
So that’s from when the home comes on the market until it goes off the market, meaning pending 18 days, average median is even lower at five days right now under 200,003 days. So that’s the kind of market we’re in pricing, I’ve got average price and median price. I didn’t break it down by price range because it gets too wonky if you do that. So it’s just average price across the board up 13% versus last year, median price up 14% or almost 15% versus last year. But I wouldn’t call that price appreciation. Average price per square foot is a better measurement of that. But again, this is only looking at one snapshot of this month, November versus last month November, or I should say this year in November, you know what I mean? So plus 12 months, if we look at this on a 12 month, I’m talking too fast, 12% this November versus last November.
But if we look at this on a 12 month, I don’t have the chart here. We’re seeing about an eight and a half percent gain in average price per square foot. So that’s probably about where we are in overall price appreciation. So that’s that, let me just show you a couple other things. If you want to hang in there and listen to this, I do have, like I said, real-time market conditions. These are the reports that show you what’s going on for active properties on the market in real-time, it’s updated every week. So you can take a look here. It gives you, I got this particular piece of software because I was tired of knowing what happened in the past with the market. I want to know if something big is happening, I want to know right away. I want to know, you know, if all of a sudden we see a flood of price, reductions of homes I want to know that if suddenly median list price starts dropping substantially, that means that it’s kind of what’d you call it crowdsourcing or wisdom of the crowd.
You know, if, if agents and buyers are starting or sellers are starting to list their price at a lower price, that’ll, that’ll kind of show in the future. So I want to know that. So anyway, this particular software will do that. You can get those reports by clicking here, inventory tracking. This is just some, some charts that I made playing around with Google charts and Google spreadsheets. This is a number of homes on the market. Again, this is by week, and we did have a tick down here in the last week. I don’t know if that’s very visible. It’s probably not, but you can come here and take a look at it and zoom in the same, this is a different way of looking at this as change from week to week to week, how much inventory has changed or gone up or gone down each week, that’s this chart. And then this, this one, which I, which I really want it, because it gives me a really good idea of where we are and if things are drastically different than a year ago. And so what I’m looking at is this week, most previous week versus same week a year ago. So this week versus
A week ago or a year
Ago same week we were down, we are down 46% in a number of homes on the
Market. It’s really
The story of our market. It’s driving a lot of competition for buyers. It’s driving prices up. It’s a challenge. There’s a lot of challenges for like appraisals and, and just timing. You know, people are busy. So
The thing is, people see the opportunity to buy right now, we’re talking 3%, sub 3% interest rates. People see that and they want to lock those housing prices in or their housing cost in for 30 years. And think about this, even if pre, even if which I’m not saying that’s going to happen, just to be perfectly clear. I don’t think we’re going to have any downturn in home prices based on what I’m seeing right now. But even if we had a 10% decrease in home prices, if you have a mortgage, that would be the same as a 1% higher interest rate. So 1% higher interest rate equals 10% price change in the home. I hope that made sense. If not, drop me a line, be happy to talk about it. If you have any questions about the real estate market in Albuquerque, either drop it in here, or you can always reach out to us. We are the Venturi Realty Group, Keller Williams Realty here in Albuquerque. We’re at four, four, eight 88 88. Again, if you want to ask a question, just put it right here and I’ll, I’ll respond. I watch these. Thanks for tuning in and have a great December Merry Christmas.