ABQ home prices set new record high in December - Albuquerque Journal

ABQ home prices set new record high in December

A house was for sale off Coal Avenue in Albuquerque in September. Home sales are sizzling and price records keep being surpassed, with a new median set in the Albuquerque area last month. (Mike Sandoval/For the Journal)

Albuquerque posted the highest median house sale price on record in December, capping a year of record-setting price growth.

The median sale price for a single-family detached house in metro Albuquerque stood at $315,000 last month, according to a monthly report from the Greater Albuquerque Association of Realtors. That figure eclipsed the previous record – $310,000 – set in November. The mean sale price stood at $364,271, narrowly surpassing the figure from November. Both averages were up more than 16% from last December, according to the report. The new record comes during what is typically a slower part of the year for home buyers and sellers in Albuquerque. Bridget Gilbert, board president for GAAR, told the Journal the high prices are a consequence of fewer sellers listing their homes around the holidays, even as low interest rates help keep demand from buyers unseasonably high.

“As long as the inventory is down and people are competing for those homes, (prices) are just going to continue to go up,” Gilbert said.

The monthly report listed just 592 single-family homes on the market across the metro area, among the lowest figures on record for a full month, and a 46.7% drop from last December. The number of new listings also dropped to 692, down more than 15% year on year.

On the demand side, Gilbert said buyers are looking to take advantage of mortgage interest rates that remain relatively low. She said that several indicators point to interest rates ticking up by the end of the year, which could be incentivizing buyers to pull the trigger on a new home now.

“There’s only one way that these interest rates can go, and that’s going to be up,” Gilbert said. Gilbert added that some buyers may be looking to find new houses that better fit their remote work, or remote learning, needs during the pandemic.

“We have people looking to move up or change their locations,” Gilbert said. “Because of COVID, they’re working out of their homes now, so their … requirements have changed.”

As 2022 gets underway, Gilbert said she doesn’t expect the underlying market dynamics to change right away. She said she expects significant new home construction this year, but added that labor costs and supply chain challenges have driven the price of new homes up.

Gilbert advised first-time homebuyers to be patient and consider looking for homes that are slightly under what they’re pre-qualified for, which she said gives them some wiggle room in a market where homes are selling at or above their listed price.

“I think it will be a very competitive market,” she said.

 


Albuquerque Journal and its reporters are committed to telling the stories of our community.

• Do you have a question you want someone to try to answer for you? Do you have a bright spot you want to share?
   We want to hear from you. Please email yourstory@abqjournal.com

Nativo Sponsored Content

taboola desktop

MORE ARTICLES LIKE THIS

1
Former lobbyist finds new calling in cannabis
ABQnews Seeker
Albuquerque man gives up $90,000 salary ... Albuquerque man gives up $90,000 salary for local budding industry
2
Are 4-day work weeks feasible? Business leaders weigh in
ABQnews Seeker
The concept and feasibility of four-day ... The concept and feasibility of four-day work weeks has been discussed in recent weeks, but it' ...
3
New Mexico front and center in nationwide debate over ...
ABQnews Seeker
Taken together, two forthcoming bills would ... Taken together, two forthcoming bills would create a suite of government-funded incentives to help companies construct everything from hydrogen production and hydrogen-based electric generation ...
4
IRS needs auditing power to close the ‘tax gap’
ABQnews Seeker
Courts have blocked Treasury from overseeing ... Courts have blocked Treasury from overseeing returns
5
Vintage meets sustainable at new Albuquerque boutique
ABQnews Seeker
Owner Vanessa Dagavarian said she started ... Owner Vanessa Dagavarian said she started thrifting vintage clothing as a teenager, but the idea to open her own vintage store didn't come to ...
6
At 470 killed, traffic deaths return to the bad ...
ABQnews Seeker
Pedestrian death tally reached 99, breaking ... Pedestrian death tally reached 99, breaking record set back in '94
7
Natural resource agencies request funding boosts
ABQnews Seeker
Climate change bureau would tackle emissions Climate change bureau would tackle emissions
8
Justice, sort of, is coming after deadly crash
ABQnews Seeker
Woman expected to accept plea agreement ... Woman expected to accept plea agreement over tragic incident
9
University of Va. holds largest collection of cartoonist's art
ABQnews Seeker
School's library gifted almost 7,000 pieces ... School's library gifted almost 7,000 pieces of artist's works