Summer might be winding down, but there’s little change on the horizon for hot Albuquerque home prices.
The median sales price for a single-family home in metro Albuquerque continued to hover around $300,000, hitting $298,000 in August, according to the Greater Albuquerque Association of Realtors’ monthly housing report. That figure represents an increase of more than 15% since last August, according to the report.
GAAR president Belinda Franco told the Journal that the city has more homes on the market than it did a few months prior, which has slightly slowed down the rapid home price growth from the spring. However, Franco said she expects the market to stay hot even as the weather cools down, buoyed by low interest rates and strong demand.
“It’s going to feel the same as what we’ve been experiencing,” Franco said.
The number of new listings was down 1% compared to last August, while the number of pending sales increased 5.4%.
The average home spent 12 days on the market before selling in August. While that’s still a tight window for many buyers, Franco said the market has loosened up slightly compared to this spring, when homes would sometimes sell in a matter of hours after being listed.
Franco said more sellers tend to put their homes on the market during the summer, which gives buyers more options to choose from. She added that homeowners who were reluctant to sell in 2020 and earlier this year because of pandemic concerns may be getting more willing to test the market.
“I’m hearing sellers say, ‘Well, (COVID) is not going away, so let’s go ahead and put the house on the market,'” she said.
The strong demand for housing has carried into the condominium market as well. The median sale price for single-family attached homes, a category that includes condos and townhomes, increased 17.1% year over year, and the number of new listings increased by nearly 20%.
Franco said many of these properties are rentals, and the owners are looking to take advantage of a hot market. This, in turn, has contributed to a shortage of available rental units.
Despite the strong price growth, Franco was adamant that the market is not seeing a housing market bubble reminiscent of the one that preceded the Great Recession. She said stricter lending and appraisal requirements have kept home prices from being artificially inflated.
“It’s a very different market,” Franco said.