Where is the Market Headed?
Greater Albuquerque Metropolitan Area
February 2011 indicators give reason to be optimistic about the residential real estate market recovery. Median sales price, average sales price, closed sales and dollar volume of closed sales were all higher than in February 2010. It is significant that average price seems to be increasing consistently. At $220,299, it reflected an increase of 6.6 percent increase over February’s average and was higher than the average for 2006, the third down from the peak of 2007.
Factors Adversely Influencing Market Recovery
Although median sales price for February was higher than that of February 2010, it was lower than in January 2011. Pending sales (homes with contract awaiting closing) were lower than in February 2010 but higher than in January 2011. The inventory of homes for sale was down to 4,791 in January 2011 but was up again to 4, 823, closer to the February 2010 level of 4,929. The increased inventory and average number of days (89 in February compared to 82 in January) it was taking to sell a home also continue to define the market and its recovery. The shadow inventory (distressed properties) being sold as short sales and foreclosures is also still significant and continues to be a factor. Consequently, one must say that some stars, not all, are aligned for market recovery. Until all are perfectly aligned, the region is better described as being in recovery mode and not yet recovered. (Statistics, compliments of the Greater Albuquerque Association of Realtors)
Real Estate is Local
The picture for the entire state of New Mexico is somewhat different than that of the Greater Albuquerque Metropolitan Area. Statewide, half of the counties (McKinley, Los Alamos, Sierra, Bernalillo, Santa Fe) had sales increase in February while half had decreases. Overall, February sales were lower in February 2011 than in February 2010 even though year-to-date sales of 1600 homes were 1 percent higher than reported for 2010. Also, across the state, the median price of $165,000 in February was 1.8 percent lower than the $168,999 median reported for February 2010. This report is consistent with the trend reported by the National Association of REALTORS®. A survey reveals that REALTORS® and homeowners expect home prices in 2011 to remain the same or decline. See REALTORS® Association of New Mexico
Eloise Gift
Manager and Qualifying Broker
Gift Realty NM