October 2014 was a good month for home sales across the Albuquerque metro.
Here's a few of the highlights:
- Closed sales were up 5%
- Pending sales were up 9%
- The median sales price was up 5%
- The average sales price was up 2%
The above numbers compare home sales in October 2014 to home sales in October 2013. Not only do the October numbers look good, they were the best in 5 years.
At this time of year, usually we hear about declining home sales. However, not only were home sales up year over year, but home sales were up 8% over last month as well.
City of Albuquerque Home Sales
Closed home sales in Albuquerque were up 12%. The median and average home sales prices increased 6% and 5% respectively.
Short sales and REO sales (foreclosures) remained at about the same levels as last year, making up about 20% of all sales.
Some areas like zip code 87121 remained hard hit, however, with 48% of sales either short sales or foreclosures.
Rio Rancho Home Sales
Home sales in Rio Rancho were not as strong. Sales were down 12.5% year over year.
It's been a tough year for Rio Rancho real estate, but this month's stats do have a silver lining: the median sales price was up 14%, and the average sales price was up almost 10%.
Short sales and foreclosure (REO) sales were down from 39% of closed sales last year to 27% of sales this year. The increase in percentage of fair market sales probably accounts for some of the increase in the median and average sales price.
Home Inventory and Absorption Rate
New listings were up in the metro area by 9.5% last month. However the increase in home sales led to a decrease in the absorption rate from last month. Absorption rate is a better indicator of the state of the real estate market. There was 7 months of home inventory available in October which means it's more of a buyer's market than a seller's market.
Looking Ahead to 2015
2014 was a lackluster year for real estate sales across the metro area, and 2015 promises to be about the same.
Interest rates are likely to rise, and pent up demand for home owners looking to sell and move into larger or smaller homes which could cause home inventory to grow and create a buyer's market. That is unless the increase in sales in October is an indicator that home sales will be stronger than expected.
If millennials become excited about the buying homes, the picture could be much better indeed. Maybe an increase in interest rates will push that generation of dormant home buyers to stop procrastinating and enter the real estate marketplace?
Only time will tell.
by Albuquerque real estate agent Rich Cederberg, eXp Realty, (505) 803-5012.