ALBUQUERQUE, N.M. — Fall is traditionally the time of year when Albuquerque home price growth, like the temperature outdoors, cools off after a hot summer. However, the early returns suggest that may not be happening this year.
The average price of a single-family home in metro Albuquerque in October stood at $269,247, while the median home price stood at $229,900, according to a report from the Greater Albuquerque Association of Realtors.
Both numbers are slightly larger than the home prices posted during the second quarter of the year, which includes months that tend to be the busiest on Albuquerque’s real estate calendar, and both represent large jumps from the previous October.
“It was similar to what we saw in June and July, which is unusual for us,” said Jessica Beecher, owner of RE/MAX Select in Albuquerque.
Since last October, the average home price has increased 16%, while the median price has jumped 15.5%, according to the Realtors’ association report. The number of closed sales in October stood at 1,028, up only slightly from 1,005 the prior October, according to the report. However, the report showed that the number of pending home sales increased by around 19% year-over-year.
Kent Cravens, executive vice president of the Realtors’ association, said the growth reflected a continuation of summer trends, with a stable local economy contributing to new demand, with limited inventory on the market.
“We’re being squeezed on the inventory side, so these prices are just climbing,” Cravens said.
While there are a number of new houses under construction, the number of new listings continued to fall in October. There were 1,277 new listings in October, down from 1,312 the previous October.
Elsewhere in New Mexico, the statewide average sales price increased to $274,796 in October, up from $258,516 in October 2018, according to the New Mexico Association of Realtors. The median price of homes sold statewide stood at $225,170, compared to $200,554 last October.
Beecher and Cravens agreed that declining interest rates, which the Federal Reserve dropped for the third time at the end of October, were a factor in spurring local demand. Beecher said her firm has seen new home buyers coming to Albuquerque from more expensive markets, including California and Colorado. Cravens added that Albuquerque millennials are starting to buy homes in larger numbers.
Cravens said the cost of land and labor has kept new homes from being built quickly enough to keep up with demand. While there are new homes being built around metro Albuquerque, Beecher added that many of the buyers she’s worked with prefer older homes.
“They want charm, and character and bigger yards,” she said.