How is the Market Doing? -- May 2011 Update

In the Greater Albuquerque Metropolitan Area of New Mexico, real estate recovery remains tentative. Report results continue to be mixed. In May 2011, average and median sales prices, number of closed sales, and sales volume (in dollars) were all lower than in May 2010. Both average and median prices have declined approximately 5.5 percent. In May 2011, the average sale price of a home was $198.091 and the median $165,000. The number of days it took to sell a home increased by 27 percent from a year ago. It took 84 days to sell a home in May 2011 compared to 66 days in May 2010.

The number of pending sales for May was 1 percent lower than in April 2011 but still 32.6 percent better than May 2010. Prices continued to slide but were still higher than ten years ago. In 2000, the average sale price of homes in the Greater Albuquerque  area was $156,965 and the median, $130,000.

Closed sales increased in Placitas, Bernalillo and Rio Rancho. Closed sales declined in Albuquerque, Corrales, and the Valencia County area. Greatest percentage decline was in Corrales where three homes sold compared to 6 last May. Placitas had the greatest percentage increase with 7 homes sold in May 2011 compared to 5 in May 2010.

New listings entering the market declined 6.8 percent since May 2010. A total of 1,380 were added to keep the total number of detached homes listed for sale at 5,068. Lower than in May 2009 and 2010, this is a good indicator, showing a shrinking inventory. The area has a ten month supply of homes for sale and approximately 6 homes for every buyer.

Statewide

The statewide market report also reveals a market still in transition. Half of all the local associations around the state reported gains in sails. Half reported a loss. The real estate market remains wobbly even though housing affordability, these past few months has been at its highest since tracking started in 1971.

Summary

The trends in this report are not unique to the Greater Albuquerque Association of REALTORS (GAAR) Southwest Multiple Listing Service (SWMLS) market area. It is much more widespread. And it is significant that an increase in pending home sales (homes under contract) is not reflected in an increase in closed sales. Indications are that contracts are not getting to closing as lenders continue their ultra conservative response to the mortgage crisis precipitated by their previous reckless lack of restraint. Lawrence Yun, National Association of REALTORS (NAR) Chief Economist remarks, A robust economic and housing market recovery cannot occur as long as banks continue to hold onto huge cash reserves.

 Statistics provided by GAAR and RANM.