September 2024 Albuquerque Real Estate Market Update: Mortgage Rates, Home Sales, and Why Sellers Aren’t Moving

As we dive into the latest data and trends, we’ll be covering a few important topics that are affecting both buyers and sellers in the Albuquerque area right now. Here’s what you need to know about the local housing market, mortgage rates, and why some home sellers are staying put.

Albuquerque Housing Market: August 2024 Home Sales Recap

We’re taking a close look at the August 2024 home sales data for Albuquerque, and there’s plenty to discuss. The data shows a steady market, but one question that keeps popping up is: Why aren’t home sellers moving as frequently? This is an important trend to understand because it’s impacting housing inventory, buyer competition, and home prices.

Why Are Home Sellers Staying Put?

Over the last few years, we’ve seen a shift in seller behavior, and the data we’re reviewing today highlights some of the key reasons why homeowners aren’t listing their properties as often. One major factor is that many current homeowners are locked into low mortgage rates from a few years ago, making it less appealing to sell and take on a new mortgage at higher rates.

Federal Housing Finance Agency estimates that 1.72 million fewer homes sold between Q2 2022 and Q2 2024 because of the Lock-In Effect.

They also found that the Lock-In Effect contributed to a 7.0% increase in home prices during the same period due to the reduced supply of homes for sale.

This leads us to our next topic: mortgage rates.

Mortgage Rates: The Latest Trends

As of early September 2024, mortgage rates have become a hot topic. Currently, we’re seeing rates around 6.35% for highly qualified borrowers with good down payments, according to Mortgage News Daily. This is one of the lowest points we’ve seen in over a year, and it’s a big factor for both buyers and sellers. For homeowners who locked in rates below this, the prospect of selling and buying a new home with a higher mortgage rate can be a deterrent.

On the flip side, for potential homebuyers, slightly lower mortgage rates could present a great opportunity to purchase, especially as we move into the fall and winter months, which historically see less competition in the market.

Summary of the August Home Sales Data

Home Sales:
813 homes sold in August, a 7% drop from the previous year.

Months of Supply:

Overall: 2.3 months of supply, indicating a seller’s market.

Homes over $600k: 4.5 months supply.

Homes under $300k: 1-month supply, still very competitive.

Albuquerque Home Prices:

Average price: $422k, a 0.5% increase from August 2023.

Median price: $360k, relatively flat from last year.

Price per square foot: $209, up 0.5% from August 2023.

Pending Sales:

Down 5% from July and last year.

Days on Market:

Median days on market is 13 days, a return to pre-pandemic norms.

The Home Inspection and Repair Process

Another crucial part of the real estate transaction that both buyers and sellers need to be prepared for is the home inspection and repair process. This is a key step in ensuring that the property is in good condition before the sale is finalized, and it can influence the final sale price.

For homebuyers, the home inspection is your chance to identify any potential issues with the property, from structural concerns to minor repairs. Once the inspection report is completed, buyers can negotiate with sellers on how to address any necessary repairs. This might involve requesting the seller to fix certain items before closing or adjusting the final purchase price to account for future repairs.

For home sellers, being proactive about the home inspection can help avoid potential delays. Many sellers opt to perform a pre-listing inspection, which gives them a chance to fix any problems before buyers even step foot in the door. This can make the selling process smoother and reduce the likelihood of renegotiations after the buyer’s inspection.

Overall, the inspection and repair process plays a critical role in the Albuquerque real estate market. A successful negotiation on repairs can make or break a deal, so it’s essential to work closely with your real estate agent to navigate this part of the transaction effectively.

Looking Ahead: What to Expect in the Albuquerque Real Estate Market

As we head into the final quarter of 2024, it’s important to keep an eye on several factors that could influence the Albuquerque real estate market:

Mortgage rates: While current rates are lower, any large changes could have a big impact on both buyer and seller behavior.
Inventory levels: If more homeowners decide to list their properties, we could see a shift in the market, with more options for buyers and potentially more stable pricing.
Local economy: The health of Albuquerque’s economy, including job growth and consumer confidence, will continue to be critical in determining the strength of the housing market.

Final Thoughts for Buyers and Sellers

Albuquerque Real Estate remains a dynamic market, and staying informed is key whether you’re buying or selling. For the latest updates and expert advice, don’t hesitate to reach out!