Albuquerque Housing Market Update - June 2024 Sales Data
I’m Tego Venturi with the Venturi Group of Real Broker. In this post, I’m breaking down the June market data that just came in from last month. We’ll look into the housing market trends in Albuquerque and provide some context so the raw data makes more sense. Let’s dive in and go through the numbers.
Closed Sales: A Sluggish Market
First and foremost, let’s talk about closed sales. The headline is that home sales have been sluggish over the last year and a half, almost two years now. This is after coming off all-time high home sales years like 2020 and 2021. For June 2024, we had 816 homes sold, which is down 14 percent from last year.
Comparing the last three Junes, sales in 2024 are down 14.5% from 2023, which was already down 20.6% from 2022. To give you a broader perspective, if we extend the trend over the last ten years, we’re looking at a significant drop. In the last 12 months, 9,526 homes were sold in the Albuquerque market, compared to a peak of over 15,000 homes sold in June 2021. We haven’t seen such low annualized sales since 2014.
Pending Sales: Some Positive Signs
Moving on to pending sales, we have some positive signs. 966 homes went pending in June, which is a 12 percent increase from last year. While the overall activity isn’t super strong, there is movement, and homes are being put under contract. These pending sales are homes that will likely close in the next month or two, indicating a bit of optimism moving into the summer.
New Listings: A Decrease in Market Availability
The number of new listings remains notably low. Historically, between 2014 and 2019, the number of new listings was very consistent, ranging from 16,000 to 18,000 per year. Currently, we’re seeing only about 12,000 homes listed a year. People aren’t selling as much as they used to; they’re staying put due to favorable mortgage rates and good housing payments, which is likely to continue until there’s a significant drop in mortgage rates.
Pricing Trends: A Mixed Bag
Everyone is keen to know about pricing. Let’s start with the median sale price, which in June 2024 stood at $355,000. This is a modest 1.4 percent increase from last year, but it’s a slight drop from May. However, the average sale price hit a new all-time high at approximately $415,000, representing a 3 percent increase.
The price per square foot, which I believe tells the true story, hit a new all-time high of $211 in June, a 5.5 percent increase from last year. This indicates that smaller, more affordable homes are selling, which drives up the price per square foot while keeping the median price more stable.
Price Reductions: A High Rate
Interestingly, 44 percent of all homes on the market have taken a price reduction, the highest rate we’ve seen for this time of year in the last three years. This doesn’t mean home prices are falling, but rather that sellers may have been overly optimistic and are now adjusting their expectations to align with the market.
Looking Ahead: Continued Price Appreciation?
To look into the future, if we compare the price per square foot of homes in pending sales to the same group last year, there’s about a 5 percent increase. These homes are expected to close over the next 30 to 50 days, suggesting we may continue to see year-over-year price appreciation. However, I’m cautious about predicting month-to-month trends as home prices typically peak around this time of year.
Final Thoughts
There’s always more to cover in the Albuquerque housing market. I’m constantly updating with additional data and context, so stay tuned. If you need to reach us, the Venturi Group of Real Broker is here to help at 505-448-8888.
Tego Venturi
Venturi Group of Real Broker