Sales activity in the Greater Albuquerque market areas saw Pending home sales exceed 1,000 for the second consecutive month, according to the Greater Albuquerque Association of REALTORS® (GAAR) with data from the Southwest Multiple Listing Service, Inc. (SWMLS). The 1,142 detached homes going under contract in February 2018 was a 22.4 percent increase over the same period last year and is the highest February month for Pending sales since 2006.
Pending sales of condos/townhomes for February 2018 notes a 25.6 percent increase over the same month last year. Once again, inventory of homes for sale in the Greater ABQ areas is down. Compared to February 2017, detached inventory shows an 18.2 percent drop to only 2,613 active listings, while attached homes were reduced 29.6 percent.
Both the average and median detached home prices increased in February. Compared to the same period in 2017, the median sales price increased 4.1 percent to $194,500 and the average sales price increased 0.8 percent to $225,342. While sales of homes in the $200,000 to $249,999 remain strong, February marked a notable increase in homes sold in both the $140,000 to $149,999 range and the $160,000 to $179,999 range.
The ratio of Sales Price compared to Final Listing Price for detached homes increased 0.2 percent to 97.6 percent for the month of February. Condo/Townhome sales showed an increase of 0.3 percent to 97.3 percent for the same time period.
“Homes selling in February retained 97% of their final listing price,” said Danny Wm. Vigil, 2018 President of the Greater Albuquerque Association of REALTORS®. He added, “Using a REALTOR® in today’s market has never been more important in helping sellers get to the best price point to maximize their sale profits” The full report for February market statistics is available by clicking here, or going to GAAR.com and clicking on Market Statistics.
Inventory Limits February Home Sales While Pushing Up Prices
DENVER– One word sums up February home sales across the country – inventory. The lack of homes for sale continues to be the key factor as February marks the third consecutive month of year-over-year declines in home sales, coupled with quick sales and record prices.
According to the March RE/MAX National Housing Report, home sales dropped 0.2% from February 2017, while the Days on Market average of 62 days was the lowest of any February in the report’s nine-year history.
“We shared our outlook of the real estate market in the new year and it seems that even two months into 2018 we’re already seeing records break,” said RE/MAX CEO Adam Contos. “The February 2018 median sales price of $228,700 marks the 22nd consecutive month of year-over-year price increases.”
The Months Supply of Inventory was 3.1 – also a RE/MAX National Housing Report February record – and underscored an average decline in inventory of 13.7% among the 52 markets reporting.
“While the hot markets like Denver and San Francisco continue to see low supplies of inventory, we’re also watching more homebuyers migrate into unexpected markets,” added Contos. “In one year, Billings, Montana, saw a 59 percent increase in home sales, along with Boise, Idaho, with a 25 percent increase in sales.”
Out of 52 markets, 18 metro areas saw double-digit percentage increases in median sales price year-over-year. While only two metros saw a year-over-year decrease in median sales price – Albuquerque, NM, and Burlington, VT.
Closed Transactions Of the 52 metro areas surveyed in February 2018, the overall average number of home sales increased +3.5% compared to January 2018 and decreased -0.2% compared to February 2017. Twenty-six of the 52 metro areas experienced an increase in sales year-over-year including, Billings, MT, +59.2%, Boise, ID, +25.4%, Burlington, VT, +20.4%, Milwaukee, WI, +19.6% and Richmond, VA, at +13.2%
Median Sales Price – Median of 52 metro median prices In February 2018, the median of all 52 metro Median Sales Prices was $228,700, up +2.3% from January 2018 and up +8.1% from February 2017. Two metro areas saw a year-over-year decrease in Median Sales Price, Albuquerque, NM, -0.2% and Burlington, VT, -5.2%. Eighteen metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Las Vegas, NV, +15.6%, San Francisco, CA, +15.5%, Seattle, WA, +15.4%, Pittsburgh, PA, +14.8% and Minneapolis, MN, +13.3%.
Days on Market – Average of 52 metro areas The average Days on Market for homes sold in February 2018 was 62, up two days from the average in January 2018, and down six days from the February 2017 average. The metro areas with the lowest Days on Market were Las Vegas, NV, and San Diego, CA, at 36, Denver, CO, and Nashville, TN, both at 35, and Seattle, WA, at 33. The highest Days on Market averages were in Wilmington, DE, at 117, Wichita, KS, at 101, Washington, D.C., at 99 and Tulsa, OK, at 93. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.
Months Supply of Inventory – Average of 52 metro areas The number of homes for sale in February 2018 was down -1.0% from January 2018, and down -13.7% from February 2017. Based on the rate of home sales in February, the Months Supply of Inventory decreased to 3.1 from January 2018 at 3.4, as well as decreased compared to February 2017 at 3.6. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In February 2018, 48 of the 52 metro areas surveyed reported a months supply at or less than 6.0, which is typically considered a seller’s market. The metro areas that saw a months supply above 6.0, which is typically considered a buyer’s market, were Miami, FL, at 7.0, New Orleans, LA, at 6.8, Augusta, ME, at 6.5 and Burlington, VT, at 6.4. The markets with the lowest Months Supply of Inventory continued to be in the west with Denver, CO, and Seattle, WA, at 1.0 and San Francisco, CA, at 1.1.
Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood. And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!
Peter Veres
Associate Broker, CRS,ABR,CLHMS,SRES
Elite Asset Management Team - RE/MAX Elite
www.PeteVeres.com
Cell: 505-362-2005
Office: 505-798-1000
Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood. And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!
If you are thinking of moving up to a larger home or moving to a better area, now is the time to sell.
According to an article called Not Your Father’s Housing Market by Trulia, which is about housing affordability over the last 40 years:
“Nationally, homes are just about the most affordable they’ve been in the last 40 years… the median household could afford a home 1.5 times more expensive than the median home price. In 1980, the median household could only afford about 3/4 of the median home price.
Despite relatively stagnant incomes, affordability has grown due to the sharp drop in mortgage rates over the last 30 years – from a high of over 16% in the 1980s to under 4% by 2016.
Of the nation’s 100 largest metros, only Miami became unaffordable between 1990 and 2016. Meanwhile, 22 metros have flipped from being unaffordable to becoming affordable in that same time frame.”
Except for the housing crash in the past 10 years, the graph shows that homes are more affordable now than in the past 40 years.
Now is the time to sell and purchase a new home if you’re thinking about it. With home prices and mortgage rates rising, affordability will also go down. Time is of the essence.
If you’ve been monitoring the market and have been waiting for the right time, this is it.
Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers and Seller Representative who can help you navigate thru the process and get the job done for you. He can provide you with a Free Market analysis when you are ready. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.
You can contact him by calling or texting him at 505-362-2005 or by emailing him at [email protected].
He has a great website full of the latest information at www.NMElite.com
Here are also some Free Sellers resources. VIP-Seller-Resources
This year’s estimated average refund is at $2,840, according to the Internal Revenue Service (IRS). It’s a little bit less than last year’s average at $2,895.
You’re probably thinking of what you’re going to spend it on right now but if you’re planning on buying a home this year, it can actually get you started on saving for a down payment.
Here’s a map showing the tax refunds received last year by state. (The refunds received for the 2017 tax year should continue to reflect these numbers as the new tax code will go into effect for 2018 tax filings.)
Do you need to make a 20% down payment to qualify for a mortgage? Many first time buyers think so. There are other options. Did you know that there are programs that allow you to just make a 3% down payment? These programs are from the Federal Housing Authority, Freddie Mac, and Fannie Mae. If you’re a veteran, the Veterans Affairs Loans can allow you to purchase a home for 0%!
Let’s say you started saving up for a down payment using your tax refund check. Would you be close to the 3% down payment?
The map below shows what percentage of a 3% down payment is covered by the average tax refund by taking into account the median price of homes sold by state.
As you can see, you’re not that far from owning your own home. New Mexico is almost at 50%. Now is the time to get the ball rolling and start saving up. That piece of paper in your hand can soon turn into the keys of your new home.
Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record. He can also help you to get a loan pre-approval at no cost.
You can contact him by calling or texting him at 505-362-2005 or by emailing him at [email protected]
He has a great website full of the latest information at www.NMElite.com
