The real estate market in Albuquerque is heating up as the start of summer officially begins. Low housing inventory and high buyer demand make for an even hotter market in our city.
These hot summer months are typically hot times for sellers and buyers in any city or state, but this month has demonstrated an obvious supply and demand issue in Albuquerque’s real estate market. What does this mean for you as a seller or buyer? Let’s find out.
Sellers in the abq area
If you are considering selling now may be the right time for you. With record low inventory, little list price negotiation, and short days on market we remain in what real estate professionals like to call a sellers market.
Let’s talk numbers. In terms of percent of list price received, we are hitting a steady 98.9% of list price. What’s this mean? This means that there is very little negotiating going on between buyers and sellers–at times likely above asking price. In May 2020, we saw only 1432 new listings while at the same time 1438 pending transactions. In a way, every time a new home hit the market another sold.
Closed sales were steady with 921 closings. This number is likely lower because of some COVID-19 slowdowns. However, looking into June already we are seeing just under 900 closings from June 1st to today. My guess is will the end of the month we will be higher than last month. Lastly, days on market are low with an average of 23 days on market being spent for most homes. This is high velocity in Albuquerque. In some hot neighborhoods this is likely even shorter with some homes only lasting a couple of days before getting under contract.
buyers in the abq area
With low inventory we are seeing an influx and steady stream of buyers in Albuquerque, Rio Rancho, and surrounding cities in the metro area. Summer months are typically hot for both buyers and sellers and a great time for real estate in general. However, with a definite supply and demand issue, we are seeing some heavy competition among buyers. Especially in desirable neighborhoods.
If you are considering buying, now is still a great time for you, even with the competition. Record low interest rates for those that are qualified make for a strong motivator to get into a new home and lock in those rates. On average, we are seeing around 3.3% or less for some individuals. As a buyer, you should start the pre-qualification process with a lender as soon as you can in order to learn more about your credit, get an interest rate estimate, and see how and see what kind of loan and how much you are qualified for.
In addition to finding a lender and starting that process, buyers should find a REALTOR that they want to work with and trust. This takes a small amount of research. Finding someone who is a good negotiator and will write an aggressive offer in order to get you into your next home is necessary in such a hot market. You want someone who knows what sellers want to see in an offer and who has your best interest at heart.
If you are thinking about buying or selling in the greater Albuquerque area reach out today! Let’s get started writing the next chapter of your homeownership story.
Elizabeth Benedict is an Associate Broker and REALTOR® at ERA Sellers and Buyers Real Estate in Albuquerque, New Mexico. She holds a Masters in Literature from the University of New Mexico. When she is not helping her community buy and sell houses she is usually writing.
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