Metro Albuquerque’s rapid home price growth has leveled off slightly in recent months, but that didn’t stop the market from setting a new record high in the last quarter.
During the third quarter of the year, from July through September, the median sale price of a single family home in the metro area stood at $298,000, while the mean sale price was $344,775, according to a new report from the Greater Albuquerque Association of Realtors.
Both figures were increases of at least 16% over the same period of 2020, and GAAR board president Belinda Franco confirmed that they were the highest over a full quarter in the city’s history.
“It’s a market that we’ve just never seen before,” Franco said.
Still, Franco and local Realtor Tego Venturi agreed that the market has slowed slightly since the start of the summer. The median sale price dipped slightly after hitting $300,000 in June, and fewer homes are selling with multiple offers. Venturi said the recent slowdown has more to do with seasonal impacts, with students back in school for the fall, than any underlying change in the market.
“Compared to any other time, it’s still a very, very strong seller’s market,” Venturi said.
The number of closed sales and new listings for single-family homes each dropped compared to the third quarter of 2020, which Franco attributed to limited inventory. Venturi added that buyer fatigue may be a factor as well, as potential home-buyers look to wait out the tight market.
On the other hand, Franco noted that single-family attached homes, including townhomes and condominiums, saw more listings and closed sales than in 2020. Franco said more buyers may be looking at that option, which has traditionally been less popular in Albuquerque, as the cost of single-family homes continues to rise.
“There is that light at the end of the tunnel for first-time home-buyers,” Franco said.
Going into the winter, both Franco and Venturi said they expect price growth to continue flattening out due to seasonality. Venturi said a downturn reminiscent of the Great Recession remains unlikely, but a slowdown in the market’s rapid price growth may be a welcome sight for the market.
“We can’t continue at this pace, for sure,” he said.