The Albuquerque Housing Market

The Greater Albuquerque Association of REALTORS reports that the median price of an existing single-family, detached home was $195,000 for the first half of 2008. That’s $2,000 lower than 1 year ago. Even at that, the Albuquerque Metro Real Estate market still fairs better than many other markets around the country.If you compare the numbers of homes sold the first half of 2008 compared to the first half of 2007, the numbers are down 28%. There were 3,888 homes sold in the Albuquerque Metro for the first half of 2008 compared to 5,412 sales the first half of 2007.

Much of the drop in numbers of homes sold this year is due in large part to the difficulty of Buyers being able to obtain a loan. It now takes 68 days average to sell a home this year as opposed to 42 days last year.Even though the amount of inventory is high for new homes, the number of closings have surpassed the number of housing starts. According to Metrostudy, a balanced market would have a 1 & 1/2 month supply. We now have a 2 & 1/2 month supply. We are approaching a balanced market.

There are plenty of vacant lots, especially in Rio Rancho. But, with a new City Center, new Convention Center and Arena, ground breaking of a new 1200 bed Westside hospital, proposed HP Service Center, new High School, soon to be UNM/CNM campus and UNM Hospital, only time will tell when that balance will arrive and the pendulum swing the other direction.