February 2021 Albuquerque Real Estate Market Update

Transcript:

2020 changed so many things, not least of which is the concept of home, house, how we live in our homes. You know, we started to work from home more often. We started to educate from home. We became teachers in our living rooms, in our dining rooms for many people, the way we think about this, how we take in our entertainment. No movie theaters, no going out to dinner as often, cooking from home, more often, many things have changed. You know, you think about all the zoom calls I’ve been on over the years, where somebody is in their kid’s room because they have no other place to close the door, and beyond, there are zoom meetings. So, so real estate and the way we think of homes, I think, has changed to a certain extent forever. And, and what’s happened is we have this kind of, we have this bonkers real estate market right now where we have lots of buyers looking for homes.
They can’t find anything. Very few homes coming on the market when homes do come on the market. They’re selling very fast because there’s just so much competition for them. I don’t see that changing much. And they’re there. I do see a couple of things that might happen. And so I’m going to look at the data like I do every month with the Albuquerque real estate market right now, we’re March 2nd. So we’re going to look at February, 2021. And let me close this so we can see a chart. Here’s a big headline, average sale price, Albuquerque greater Albuquerque, real estate area, all time, average price. We are just shy of 300,200. And if you can see this very well, 298,000, almost 299,000 by far an all time high, you can see we peaked out in December and October as well. And if we look at median meeting is also all time high up two, 257,000 in this is median and average in both of those have move somewhere around 16% for this February versus last February.
However, let’s look at price per square foot because this is a better indicator of the overall price change in the market. Again, median price excuse me, average price per square foot up 16% from February last year. But if we look at that on an annualized basis, I’m going to change that it kind of is a rolling 12 month 9.9%, 10%. And that tracks right with the actual, the national average. So we’re, we’re right in line with what overall in the entire country we’ve seen. There’s some markets that are much higher than that. Some markets that haven’t seen much in that there’s maybe one or two markets that saw a decline in home prices. The takeaway there is that national data and what’s happening in certain markets doesn’t mean a whole lot. All it matters is real estate local and what’s happening local is what the most important.
I want to show you this. So if we look at average price per square foot hit $152 in February, let’s look at the bigger, the other big story, which is, well, there’s a bunch of big stories. There’s so many headlines here. I don’t even know where to start. How about days on market? You know, average days on market hit 24 median days on market is down to five. And that just means homes are selling extremely fast, all time low. You know, we did hit a four back in September for median days on market. The number of homes coming on the market is something I wanted to dig into a little bit because this chart tells an interesting story. If you actually look into it every year, historically, we see like, you know, January or December, January, February, this is an, excuse me.
This is a number of new homes coming on the market, Jan, December, January, February. That’s always, when we see the, the, the lowest number of homes coming into market, and then start early spring, like right now, March is when things really start to kick off March, April, may. Right? You can see that year over year, March, April, may, June, right? Same, same in previous year. So these are, these are years here, February, March, March kind of started off. Okay. It was already way behind. Of course, what happened? We know what happened in March, right? I don’t need, I don’t need to beat that one up. So, and then April, so all those people that may be were going to be putting their home on the market March, April, may, or let’s just say last summer they did it. It just stopped. And that’s one of the, one of their in, in trust me, there’s more than one reason that we have such low inventory, but that’s one of the big reasons that we do have such a low number of homes on the market.
If so many people that we’re going to maybe thinking about moving last year, just put, put a pause on it. I do hope actually that that will as, as we start warming up here, more people will be thinking about putting their home on the market time to start moving time to start, you know, doing something different for those reasons we just talked about, you know, it’s not working for the way they’re living now, the number of homes for sale. Clearly this is the big story. I mean, look at this number. If I go even back to, let’s see how far back can I go? I can go back to 2006 is as far as it goes, we’re at an all time low by any metric and the number of homes available to sell just on the market. Part of that is that as they coming on the market, they’re selling fast, that we just never even have time to build up any inventory.
What else do we want to look at? Oh, month’s supply of inventory. Again. This is another metric of supply versus this is the metric of supply versus demand again, all time low. So there’s a lot here. Th th th the thing is, like I said, this is a, this is a bonkers real estate market. And one of the things I see going into 2021 is that some of these people, like I said, that weren’t, or didn’t sell last year that maybe were going to maybe coming on the market. We do have a challenge there though, because those people may be maybe not be able to find what they’re looking for. Interest rates have pushed up since last month, still right around that hovering around 3% plus or minus, you know, they were sub 3% for quite a while. There that’s gone up.
Every indication is that they’re going to maybe push up a little bit, continue to push up to me. That’s the one thing that could slow down the, this market is interest rates getting up three and a half, maybe even 4%. Not that it’s like a high rate, it’s just a, it’s a mental thing. Oh, I could’ve got a three. Well, homes are still, even with the 10% increase in home prices. Overall affordability is still very strong because of those interest rates. And it looks like that’s going to continue. There’s a whole nother conversation about forbearance and foreclosure, and what’s going to happen with all those people. And we don’t have time to do that. Here. You can look for one of my videos where I talked about that. I’ll just put this out there. I don’t think it’s going to be a huge issue in just about all the experts in that space.
Feel the same way. The, I will say this, if you are, if you know somebody that is in one of those situations where they’re not able to make their home payments, not able to make their mortgage payments, maybe are in a forbearance plan, they need to reach out to us, have a private conversation about what’s going on. There’s lots of options, way more options. And where we dealt with back in 2009, when, when you know that that whole mess happened, it’s not going to be like that. Or they’re going to be people that are going to be in a quote distress sales situation. Of course, nothing like we saw before, and people have a lot of options. Now, unlike we did back in 2009, you have any questions about the real estate market in Albuquerque. Reach out to me. Tega Venturi Venturi Realty, group Keller Williams Realty. Our website is welcome home. Abq.Com. Our office number is (505) 448-8888. Thanks for watching.