Market Update - In Albuquerque, New Mexico Real Estate is Local

All real estate is local so while we read the national news and stay abreast of what is happening in other states, we must remember that what is true of the markets in other parts of the country at any one point in time may not be not be true for Albuquerque, New Mexico.

The downturn wave in the real estate market reached the Greater Albuquerque area of New Mexico in the fall of 2007 almost a year later than several other states where the market heated up to bubble or near bubble proportions. In New Mexico, market appreciation started later, was gradual, and never quite reached bubble proportions. And while we recognize that more New Mexico homeowners than we would like, are adversely affected by the mortgage crisis, we are aware that our local market has weathered the downturn better than many others.

Market Recovery: Having entered the downturn cycle later, we expect our recovery to predictably lag behind in recovery also. Spring sales acceleration and news of market recovery already underway in some states are base-line indicators that our local market may already be on the road recovery.

Recovery started with the implementation of the homebuyer tax credit intended precisely for that purpose. The credit attracted first-time homebuyers and stimulated the resale market of homes below $250.000 resulting in consistent month over month increases in closed resale homes transactions particularly since September 2009.

February, a traditionally slow sales month, saw increased closed sales of existing homes. The increase was 10.8 percent above February, 2009. Sales revenue for the month increased 9.18 percent for a total of $78.5 million with the town of Rio Rancho leading the market.

March saw an increase of 36.34 percent in closed sales, with Bernalillo leading the way. The entire Greater Albuquerque MLS area sold 465 detached homes in March 2009 and in 2010: 634

April is almost over and the expiration of the homebuyer tax credit on the last day of the month looms large. Were the stimulus measures in place long enough to make a lasting, sustainable difference? Only time will tell.

Eloise Gift, Gift Realty NM
www.newmexicohomesbyeloise.com