Exploring the Albuquerque Housing Market Update – August 2023
Introduction:
In the ever-changing landscape of real estate, staying up-to-date with market trends is crucial for buyers, sellers, and even enthusiasts. In this blog post, we will delve into the Albuquerque housing market update for August 2023, as presented by Tego Venturi from the Venturi Group. By analyzing key indicators such as closed sales, pending sales, inventory, pricing, and supply-demand ratios, we aim to provide you with insights into the current state of the market.
Closed Sales and Pending Sales:
The Albuquerque housing market experienced a 14% decrease in closed sales compared to last August. This decline reflects a slowdown in activity, with the number of people moving and buying/selling homes lower than in previous years. However, despite the decrease in closed sales, there was actually a 4% increase in pending sales. This suggests that there is still a significant level of interest and activity in the market, with many potential buyers actively seeking and securing contracts on homes.
Inventory:
One of the prominent factors influencing the Albuquerque housing market is the limited inventory available. At the end of August 2023, there were only 1,260 homes for sale in the entire metro area, marking a 16% decrease from the previous year. This shortage of available homes for sale continues to be a significant challenge in the market. While new construction homes are entering the market, resale homes have taken a hit, and people are not moving as frequently as before.
Pricing:
As demand outweighs supply in the Albuquerque housing market, home prices have experienced steady appreciation. In August 2023, the average price for single-family attached and detached homes was around $421,000, representing an 11% increase from the previous year. Median prices also climbed to a new high, tying with the previous record set in June 2023. Price per square foot provides a better indicator of price trends, with an average of $211 per square foot, showcasing consistent year-over-year growth.
Market Cycles:
Analyzing historical data, the Albuquerque housing market tends to follow seasonal market cycles. Typically, there is a peak in sales during the summer months, followed by a slight decline in fall and winter. This pattern is expected to hold true this year as well, with a potential pullback in prices during the upcoming months. However, it is important to note that while there may be fluctuations, the overall trend has been an upward trajectory in home prices over the past few years.
Supply-Demand Ratio:
To understand the supply-demand dynamics in the market, the supply-demand ratio is a valuable indicator to consider. Currently, the Albuquerque market is operating at a 1.5 month supply, indicating a 7% increase from the previous year. While this increase suggests a slight easing of competition between buyers, the supply remains relatively low compared to previous years. For perspective, in 2018, there was a 3-month supply, and in 2019, a 2.5-month supply.
The August 2023 Albuquerque housing market update presents a mixed picture. While closed sales have decreased, indicating a slowdown in overall market activity, pending sales and increased prices demonstrate continued interest and strong demand among buyers. The scarcity of available homes for sale remains a challenge, driving up prices and contributing to a competitive market. It is important for buyers and sellers to consider these factors and explore their options carefully. Monitoring market updates, seeking professional advice, and conducting thorough research will assist in making informed real estate decisions in Albuquerque.