Here we are at more or less the halfway point of 2017 and what a year it has been so far for real estate in our corner of New Mexico.
Month after month, we've reported what a tremendous market we're seeing and there's no reason to suggest the good news isn't going to continue for the foreseeable future.
There really is an argument that there's never been a better time to sell and/or buy a home.
In the case of buyers, there's a sense of urgency rarely seen before. Even when mortgage rates rose quite steadily after the election last November, it had hardly any effect on buyer sentiment and, now that rates have retreated to the lowest levels we've seen all year, this can only feed the enthusiasm to purchase.
Indeed, if we look back over recent years, we can see how critical sustained low mortgage interest rates have been to stimulating the market out of recession and continuing to inform the steady growth that we've seen for so long now.
At one stage there was Government intervention to keep rates artificially low, in order to maintain then more fragile real estate market activity. Since these measures ended, market forces have continued to dictate that rates have stayed at more or less the same record low levels as before.
Wise buyers know, however, that rates will not continue to be as low forever and the post-election rises we saw for a while demonstrate that. Therefore there is a heightened sense of urgency to lock in a low rate as soon as possible.
And yet we continue to see very low levels of inventory of available homes for sale in the Albuquerque area. There is no single reason behind this, but it's true to observe that owners are themselves often locked in to very low interest rates, many having refinanced in recent years. There was also a period a few years ago when selling a home was more challenging and it's also probably true to say that many people gave up on the idea of moving and instead invested money in their existing residence.
Whatever the reasons, it sets up a wonderful situation for anyone who lists a quality home on the market right now. We're seeing more and more examples of competitive offers, sometimes rising above the actual asking price. Combine this with the fact that asking prices are more robust due to reduced competition across local market sectors and you have a dream scenario for the seller. That's why it's very much a sellers' market at the moment, not that buyers seem to be objecting!
With a healthy economy and generally very good job news, plus the growing appeal of the Albuquerque area, especially to very well qualified tech industry workers, it seems fair to expect that we're going to see even more exciting developments in the second half of the year.
If you're contemplating selling and/or buying right now, why not contact us today for individually tailored advice on how to make the most of the current situation that is ultimately a win/win for everyone.