While we always provide you with a monthly analysis of Albuquerque real estate statistics, we also like to bring you the essence of the quarterly reports issued by The Greater Albuquerque Association of REALTORS®(GAAR), as these provide arguably even better evidence of more sustained trends in the market.
Although we aren't at all surprised by the positive results in the last three months of 2016, just published by GAAR, we're still encouraged by another strong indication that the market is showing such noticeable year on year growth, looking through a wider lens. It should also be observed that all this occured in what is typically a slower period for sales.
There were increases in both the price and number of existing homes sold, resulting in a substantial 10.8% improvement on the same period in 2015.
Q4 also saw a 6.66% year-on-year jump in the number of detached homes sold. Townhomes and condos also contributed to the good news story, demonstrating a 4.58% improvement in the same time frame.
This was the highest number of homes sold since 2006 and it's worth noting that specific areas performed even better!
North Rio Rancho experienced 82.98% growth in comparison with the final quarter of 2015, while detached home sales in Uptown, Near South Valley and North Valley grew in the same period by 40.98%, 37.14% and 35.48% respectively.
The average number of days on the market fell to the lowest level since 2007! It took 55 days to sell a home on average in the final quarter of 2016, 8.33% faster than at the end of 2015. Interestingly, in Rio Rancho the average figure was just 49 days.
In a statement, the GAAR said that the lower average sales times were largely due to the continued downward trend in new listings, as inventory fell to a multi-year low at the end of the year. This is still a serious problem for the market and it is to be hoped that recent stock market growth and general confidence in the economy persuades more homeowners to sell during 2017. While low inventory is good, in many ways, for sellers, low selection levels are often counterproductive in terms of buyer enthusiasm, although it's true to say that we've seen homes continuing to be snapped up.
We've also continued to see improvements in both median and average sales prices in the final quarter, with average price ($221,456) up by 4.14% compared to the same period in 2015 and median home price ($189,000) doing even better, showing 5% year-on-year growth.
It's good to observe that our local market is showing such consistent improvements. Why not contact us today to make the most of the current opportunities.