Copyright © 2022 Albuquerque Journal
Average home prices in the Albuquerque region exceeded $ 400,000 in May, but interest rates continue to rise, which could slow the market.
According to a report from the Greater Albuquerque Association of Realtors, using data from Southwest Multiple Listing Service Inc., the average price of single-family homes in May was $ 401,326, up nearly 21% year-on-year.
According to a report released Friday, the median selling price was $ 340,500. Both numbers are record highs, according to GAAR, which released a report dating back to 2008.
For comparison, the average selling price of a single-family home was $ 315,000 in February, according to GAAR.
“It’s still considered a seller’s market,” said Bridget Gilbert, president of GAAR, adding that bidding wars are still common in the Albuquerque region.
In May, there were 1,291 new properties and 834 were put up for sale. This is an increase from 698 units in April.
“Historically, at the end of the school year, we see more homes entering the market,” Gilbert said.
However, compared to the previous year, we can see that housing inventories have decreased by nearly 17%.
According to the report, single-family homes were on the market in about 13 days on average. This figure is the same as the previous year in April. Homes that remain in the market give buyers “more room,” Gilbert said.
The absorption rate calculated by dividing the inventory of sellers at the end of one month by the average monthly hold sales last year was 0.8 in May. This is because the absorption rate of single-family homes has decreased by more than 11% from the previous year.
According to Gilbert, the May absorption rate shows that inventories are still too low to be in the buyer’s favor.
Interest rates continue to rise in all respects, and 30-year fixed-rate mortgages are expected to soon exceed 6%, Gilbert said.
It will level the market a little more. As a result, she said home prices would probably be flat.
“I think it’s very slow, but I think the changes are going on,” she said.
On the annex side, the average price in May was $ 250,000, up from $ 210,500 in the previous year. However, according to a GAAR report, there were about 132 new listings and about 46 sellers last month.
However, Gilbert said the rise in single-family home prices has seen a shift in buyers buying single-family homes.
“For now, I think the affordability of homes is a really big concern,” Gilbert said. “In reality, the performance of the attached market is improving just because the price is high.”