The July 2009 Albuquerque Real Estate Market Summary has been published by the Albuquerque Board of Realtors. At long last there is some positive news to report! Here is my take on th enumbers and what they mean to Albuquerque area buyers and sellers.
Closed Sales
Closed sales were up 4% from July 2009 with 735 closed sales versus 704 closed sales in July 2008. This is the first time in many months that we have seen an increase in year-to-date monthly sales activity.
Pending Sales
Pending sales were flat, with 875 sales in pending status in 2009 versus 871 sales in 2008. I'm not sure how to interpret those numbers yet. More to come in next month's report.
Active Listings
There remains to be good news for sellers. There was a 14% decrease in new listings YTD. The decreased number in listings combined with strong closed sales has continued to create a low supply-demand ratio. I think the supply-demand ratio is the best indicator of the "pulse" of real estate sales on the street. The lower the ratio of homes for sale to pending sales the easier it is to sell.
Average Sales Price
Average sales price is down 7% from $240,896 in July 2008 to $224,271 in July 2009. Average sales price numbers are influenced greatly by the number of home sales in the higher end market. The higher end market continues to be down with only 7 sales above $750,000 versus 14 sales above $750,000 in 2008.
Median Sales Price
The Median home sales price is down 6%.
General Notes on Albuquerque Real Estate
Most of my sales activity continues to be with first-time home buyers who are anxious to cash in on the $8,000 tax credit. As these buyers are closing on houses under $150,000, I am seeing the sellers of those homes move up in the market and purchase in the $200,000-$250,000 price range. So the tax credit seems to be stimulating the market.
Signs calls and internet inquiries have continued to increase as first-time home buyers are coming to the realization that time is running out on the tax incentive program. Nice houses in the lower price range are becoming more difficult to find. I have heard of several multiple offer scenarios.
First-time homebuyers need to get serious and locate the home they want to buy.
Owners of smaller, less expensive homes should give serious consideration to selling now if their home is in very good condition.
Forecast
The number of home sales will be strong for the next three months, however, prices will continue a slight decline as more foreclosures and short sales hit the market. An exception could be in the $150,000 and under market where non-foreclosure and short sale inventory is down and prices have shown signs of price stabilization.
