Our look back at the key highlights in Albuquerque area real estate could hardly ignore one of the most defining factors in our local market this past 12 months - low inventory of available homes for sale.
Every month in 2015 we've delivered a summary of local market performance and low inventory has been a constant and has never really shown signs of significant recovery. If anything, it's been getting steadily worse, in real terms.
Perhaps what has been most surprising is that we've seen excellent growth in demand for homes during the year and yet many sellers have been slow to take up what is, without question, a golden opportunity. Those sellers who've recognized these wonderful conditions have unquestionably enjoyed the reduced competition and benefited from more robust holding of asking price, or even multiple offers above that level.
The answer as to why inventory remains low is actually quite a complex one, with no "silver bullet" solution.
Nationally, inventory started to significantly decline in 2011 and has never fully recovered.
Contributory factors have included reduced new home development, changes in capital gains tax that now tend to discourage very frequent house moving, plus homeowners who are happily locked into very low mortgage interest rates. There is also a wide perception that prices are continuing to climb, so that acts as another disincentive to move for some.
It would also be true to say that not everyone is fully aware of the current value of their home and many simply haven't considered the possibilities of going upscale (if this is you click here for a free home valuation - you might well be pleasantly surprised).
We'd also venture to suggest that there is another significant factor at play here. The recession clearly put a halt on lots of people's home selling/upgrading aspirations and they've simply never reconsidered their decision to put plans on hold. In many cases, they may have stayed put and upgraded their homes, rather than move.
Another supreme irony at the moment is that, with the return of the first time buyer in 2015, we now have the most vibrant entry level sector for a very long time, with consequential, and essential, enhanced market fluidity.
With so many positive forecasts for real estate in 2016, it could well be that we soon reach a crucial tipping point, where the fast-growing feel good factor in the economy enables many sellers to have the necessary confidence to move once more.
In the meantime, there is high demand and low supply across all sectors. Don't waste a second and contact us today to take full advantage of the situation.