Recently, the Greater Albuquerque Association of Realtors (pronounced “realtors” not “real estate agents”) released Market statistics for June 2021… The report, unsurprisingly, highlights the continued unprecedented growth of the Albuquerque real estate market. The report shows that thanks to historically low interest rates and limited inventory, prices for individual mansions in Albuquerque are up 25.8% since June 2020, to a record $ 305,000.
Similar trends were observed in real estate in downtown Albuquerque, which encompasses the Old City and West Center. In June alone, 27 residential properties were sold with an average selling price of over $ 291,500. Compare that to the same period last year: 28 properties were sold for an average of more than $ 238,800, a 19 percent difference.
Albuquerque is not the only city experiencing a housing boom. National Association of Realtors (IAAR) announced that nearly all urban areas they track saw year-on-year price increases in the first quarter of 2021, with 89 percent of urban areas experiencing double-digit price increases. In Albuquerque, this growth was 16 percent from Q1 2020 to Q1 2021, according to a NAAR report. In addition, while national secondary home sales declined slightly (down 0.9 percent) in May, the average secondary home price for all types of homes declined. a record growth of 23.6 percent over the same period last year. “I was amazed at how much money was invested in our market,” said Michael Schlichte, owner and qualified broker at Absolute Real Estate & Property Management. “Regular retail buyers and large investment groups invest large amounts of cash, sometimes over 25 percent. They cover the seller’s usual expenses and often pay in excess of the assessed value. These elements were virtually nonexistent during the market boom from 2005 to 2007. ”
However, as positive as this news may seem, there is always another side to the story. Low inventory, rising prices, and fast order processing often lead to a bidding war between buyers. “If you enter on the list … now it is considered a low offer,” said Belinda Franco, President of GAAR. interview from Albuquerque magazine… Many potential buyers now find that they are not priced right for their ideal home and often have to agree. “I didn’t expect the homes to be sold so quickly and far above the asking price,” said Tong Sawat, a transplant surgeon in Washington state, about buying his first home. “It can be devastating to learn that sellers have accepted another offer without being able to make a counter offer.”
While the market has seen only the smallest spike in residential inventory, real estate brokers believe this is just a seasonal survey by homeowners just “testing the water.” The problem with putting your home up for sale, however, is that you better have somewhere else to live. Growth rates are not expected to slow significantly and most brokers expect to be very busy by the end of the year. “If you want your offer to be taken seriously, the highest and best offers are what the market dictates, and a licensed real estate broker can help you determine that,” Schlichte said.
* Business writer Mohamed Abdel-Haq is a licensed real estate agent with Weichert Realtors-Image in Albuquerque.