Earlier this month I did a quick update as well as the Q3 numbers. Here is a full Video Market Update Report including the HPI numbers for the 3rd quarter as well as a November 2016 update. Two big things I am watching… Home Price Index, and Supply vs. Demand ratio. The HPI has had a 4.49% increase through the 3rd quarter, largest move in 10 years, a healthy move. It will be interesting to see how Oct, Nov, and Dec come out. At this point it looks like we will end up at 5%+ appreciation for 2016 Y/Y. The Supply is low and if the demand trend continues, this could create some challenges. However, the fact the prices are going up will help some people who have been in the position of wanting to sell but having negative equity. As the negative equity goes away that can help bring more homes on the market.
We just received the latest Home Price Index numbers for Albuquerque and as expected… prices are up. For 2016 we have seen a 4.49% increase in the index through the 3rd quarter. The last time the ABQ housing market has had gains greater than this was 2006. The Albuquerque Home Price Index has averaged 3.9% since 1978.
The takeaway on the market… The number of homes sold continues to increase but at a moderate level. Supply vs. demand continues to be in favor of sellers in the median price ranges. Year over year price appreciation looks to be in the 3%+- range
I was looking at the home prices in the Albuquerque area and have this great chart that shows the Average Price per sqft. I like this number vs average or median price to get a better indication of appreciation/depreciation. Some takeaways… The avg price per sqft is at the same levels as Summer of 2006 and of Fall of 2010. The appreciation from 2012 to today is about 2.5% annually and from 2004 to 2008 it was about 7% annually. Tego