The median sales price for single-family detached homes in the greater Albuquerque area decreased by $10,500 from May to June of this year. According to the Greater Albuquerque Area Association of REALTORS® market reports, the median sales price in May was $340,500 and $330,000 in June.
“In June, the local market started seeing typical summer activity, school is out and there are more homes on the market resulting in lower prices,” GAAR President Bridget Gilbert said in a July 11 press release. “This is good news for home buyers as they will have more choices in their price range.”
The number of homes on the market increased from 834 in May to 1,086 in June, providing a greater supply for buyers to choose from and helping to stabilize prices. Inventory is still down — and the median price up — compared to the same period last year, though. Inventory decreased by 4.7% since June of last year when there were 1,140 homes on the market. In June 2021, the median sales price of single-family detached homes was $305,000, which is $25,000 less than June of this year.
In the far Northeast Heights, the number of showings decreased from last month. A GAAR showing report for June 2022 says there were 1,065 total showings in the far Northeast Heights. There were 1,150 total showings in May for the same area, according to GAAR data. The number of showings in North Albuquerque Acres also decreased, going from 282 showings in May to 189 showings last month.
“Rising inflation, soaring home prices, and increased mortgage interest rates have combined to cause a slowdown in the U.S. housing market,” the June 2022 GAAR Monthly Indicators report reads. “Higher prices, coupled with 30-year fixed mortgage rates approaching 6% have exacerbated affordability challenges and rapidly cooled demand, with home sales and mortgage applications falling sharply from a year ago.”
In June, the Federal Reserve raised interest rates by three-quarters of a percentage point, the largest rate hike since 1994. Lawrence Yun, chief economist for the National Association of REALTORS®, suggests in a July 13 statement that interest rates may increase even more.
In a reaction to the most recent Consumer Price Index report, Yun remarked, “Consumer price inflation is the highest in over 40-years and showed no sign of slowing down in June. It rose by 9.1% and is accelerating. The annualized inflation rate (one month change multiplied by 12 months) was an eye-popping 17%. The Fed may be forced to raise interest rates even more aggressively than planned, even with a rising possibility of a recession on the horizon. The mortgage market had already factored in several additional rounds of the Fed’s rate hike, but may have to adjust a bit higher based on today’s uncomfortable inflation rate.”
