On Tuesday we looked at the recent Greater Albuquerque Association of Realtors (GAAR) quarterly market report for January, February and March and noted that, for the first quarter since the third quarter of 2014, the number of new detached listings had increased.
Given that the increase was 2.69%, we clearly aren't witnessing a sea change in the attitudes of on the fence home sellers, but nonetheless it's a positive trend with its own story and one that we should perhaps take a little more time to reflect on.
In some important ways, the overall number of homes for sale in the market should have been climbing for some time. What's perhaps different about right now is that whenever we receive either monthly or quarterly local market stats these days, we see improvements right across the various categories of measure, rather than isolated pockets of good news. We therefore think it's quite reasonable to suggest that some sort of tipping point for sellers has finally been reached and is at last manifesting itself in the figures.
Mortgage rates again took a fall this week and thus we will continue to see unabated enthusiasm from buyers to secure a home while they can still lock in a low interest rate for the life of the home loan. There really cannot be a bigger incentive for anyone looking to purchase and would-be sellers need to recognize that there is absolutely no certainty as to how long the present low rates scenario can continue. Just because we now almost expect to end each week with lower rates, or at least rate stability, doesn't mean that an unforeseen dynamic won't suddenly enter the market and make mortgage backed securities a less attractive safe haven for investors, with the result that we will start to see rates rising more consistently.
It's encouraging, however, that we are currently seeing homes coming onto the market in slightly greater numbers, perhaps indicating a growing sense among sellers that there has rarely been a better opportunity than right now.
We've also been seeing prices rising quite steadily, and on Tuesday we noted a 5.69% increase in the average sales price in the area in the first quarter of the year. This is at least a partial result of still low inventory of available homes in the area, enabling sellers to hold their prices, given the high demand and short supply - another great reason why more people are now listing.
If you're looking to upgrade or downsize your current home, then you need to consider that the chances of attracting multiple offers, maybe even above asking price, are higher then they have been for a very long time. More sellers are arguably now seeing that, even though the choice of homes to move to could be better right now, there are excellent possibilities for a very quick sale of their existing home, increasing their options and, when price objectives are exceeded, perhaps even widening the scope of properties they can afford to move to.
This is a period of exciting growth in Albuquerque real estate and we'd be delighted to have an informal discussion with you as to why more and more sellers are seizing the moment and why you should be one of them. Why not call us today.