We always look forward to this time in the month, as it's when we get to see the latest statistics published by The Greater Albuquerque Association of REALTORS® and to reflect on them with you.
Once again they paint a very favorable picture of our local market in the high season month of July.
Among many highlights, what immediately stood out for us was the very significant 29.6% year-on-year improvement in the level of detached pending sales. This builds on a current trend that also saw a 22.9% increase between June 2016 and June 2017.
Detached closed sales were essentially flat for the month in the annual comparison, showing just a 0.5% rise. This very likely means that we're going to see a very good August, as those pending sales gradually transition to closed ones.
There was once again a very noteworthy yearly rise in detached median and average sales prices, up 4.9% ($199,250) and 5.3% ($237,814) respectively.
Another noteworthy stat was the 12.5% drop in the average number of days a detached home is on the market before it sells to just 42 days. That's actually 4 days better than the previous month, indicating just how much pace we're seeing in terms of excellent buyer sentiment, as locking in very low mortgage current mortgage rates continues to be a key driver.
This figure is also unquestionably at least partially explained by the continuing fall in overall inventory of homes for sale, which dropped by 19.4% last month, compared with the same period last year. The absorption rate, which is the total inventory divided by average monthly pending sales over the past 12 months, also continues to give cause for concern, having fallen by 26.6% in the past year.
Of course, in the short term, low inventory is basically great news for sellers, as it helps to keep prices high and reduces competition. Buyers, however, like choices and the continuing downward trend in inventory is somewhat counterproductive to other more optimistic market measures. That being said, it appears to have done nothing to quell the tremendous enthusiasm of buyers, who seem to clearly acknowledge that this is a fantastic time for low cost borrowing, perhaps totally outweighing reduced selection concerns.
And there is again a glimmer of hope in the July figures, as detached new listings were up on this time last year by 3.1%. However, as overall inventory levels continue to succumb to very high demand, this is not having a truly positive effect on overall supply. It is a step in the right direction though and we are tracking a 7.6% improvement in the numbers of new listings so far this year.
We can once more see just how incredibly well the Albuquerque area is doing right now, as part of a very sustained period of growth. It's simply a great time to sell and, as we wrote on Tuesday, there appears to be every sign of another vibrant run-in from the end of summer to the end of the year.
Why not contact us today to discuss how to make the most of a great situation.