Although the median price of a single-family home in the greater Albuquerque area increased 15.3% in September compared to the same month last year, the number of homes on the market is beginning to grow, providing some relief to homebuyers.
According to the Greater Albuquerque Association of REALTORS® September market statistics report, the median price of a single-family detached home was $340,000, while inventory of single-family detached homes increased 21.9% compared to September 2021.
“The biggest news for September is that we’re starting to see a substantial increase in homes for sale,” said Bridget Gilbert, 2022 GAAR president. “While home prices are still up month over month, the local market is beginning to normalize.”
Inventory of single-family detached homes for sale increased from 1,155 in September 2021 to 1,406 in September 2022. The median sales price for single-family detached homes was $295,000 in September of last year, $45,000 less than the median price in September of this year. Single-family detached homes stayed on the market for 19 days last month, compared to 13 days in September of last year.
Another possible indicator of normalization is the percent of list price received. In September 2021, single-family detached homes were selling at 100.8% of the list price, while in September 2022 that number dropped to 99.3%. Although the list price received may be coming down and buyers gaining some leverage when it comes to making offers, affordability is still an issue for homebuyers in Albuquerque — and across the nation.
Decreasing affordability
Over the summer, sellers were rejecting offers at or just below the list price while also denying any requests for repairs by homebuyers. Now that the inventory is increasing, there may be more wiggle room for buyers to request repairs and make lower offers; however, home affordability is still out of reach for many looking to buy.
According to GAAR’s September report, housing affordability decreased 31.6% since September 2021. The Housing Affordability Index looks at the percentage of median household income necessary to qualify for a median-priced home under prevailing interest rates. Lawrence Yun, chief economist for the National Association of REALTORS®, said in May that homebuyers are paying significantly more than they were a year ago.
“Mortgages now compared to just a few months ago are costing more money for homebuyers,” Yun says on the NAR website. “For a median-priced home, the price difference is $300 to $400 more per month, which is a hefty toll for a working family.”
In May, NAR calculated it was 55% more expensive to purchase a home than a year ago. “Wages have risen by 6% from one year ago and that’s good news,” Yun said. “But inflation is at 8.5%.”
Since interest rates are higher and home prices still a far cry from what they were a year ago, buyers are still paying more than before, but the growing inventory may help to create a a small shift in the market, favoring homebuyers in the greater Albuquerque area.
Buyer interest in northeast Albuquerque
In the far Northeast Heights, the number of showings decreased year-over-year, but increased month-over-month. In September 2022, the number of showings for homes $275,000 or more in the far Northeast Heights was 844, a 2.7% month-over-month increase, but a 12.8% year-over-year decrease. There was a total of 946 showings in the far Northeast Heights last month.
In North Albuquerque Acres, there was a total of 236 showings last month, all for homes $275,000 or more. There were 9.1 showings per listing for the same month, a 6.8% month-over-month decrease in buyer interest, but a 23% year-over-year increase.
In the Northeast Heights, there was a total of 1,244 showings last month, with 703 of those for homes ranging from $185,000 to $274,999. Buyer interest increased 2.5% year-over-year and 13.8% month-over-month, with 13.8 showings per listing in the Northeast Heights for homes in the $185,000 to $274,999 price range.
The Academy West area had the highest overall buyer interest in September with 10.5 showings per listing. The Northeast Heights had the highest total number of showings at 1,244 and the second most managed listings at 131. The Northwest Heights had the greatest number of managed listings, with 140 for the month.
To see the full report, visit gaar.com/market-statistics/monthly/september-2022-market-statistics.