The Greater Albuquerque Association of Realtors announced that the recovery of the metropolitan Albuquerque real estate market continued to pick up steam in 2013. The sale of 9741 single-family homes last year reflects a return to the level of sales experienced back in 2002 and constitutes the highest level of sales since the period of 2004-7 before the financial crisis.
Some local market analysts viewed the upturn in the market as “impressive” because the tighter lending regulations in this post-recession period were expected to provide a headwind to robust sales. The Association President John Kynor expects this momentum to continue in 2014.
The average sales price for single-family homes increased 2.9 percent from the year before. This increase falls not far below the 4 percent annual increases registered from 1983 to 2003. The average sales price for the homes purchased last year rose to $210,488 and the median price for these sales jumped 3.5 percent to $174,900.
However, these prices still remain far below the levels of prices houses were sold for in 2007, the peak year for home values based on sales during that period. Last year’s average sales price is $32,601 below the average price in 2007, or 13.4% lower. The rate of last year’s increase also falls far short of the upward rise in sales prices of nearly 40 percent during the 2004-07 bubble years. Average prices then dropped by just over 18 percent during the subsequent 2008-11 downturn. Those periods respectively constituted the sharpest increase and decrease in residential real estate prices in metro Albuquerque since such records have been kept. Last year’s more modest recovery may reflect a more stable market than purchasers and sellers faced during the preceding decade.
The trend in Albuquerque mirrors broader national trends. In 2013, nationally there were 5.09 million sales, which is 9.1 percent higher than the number in 2012. The national median existing-home price for all of 2013 was $197,100, 11.5 percent above the 2012 median of $176,800. This increase was the strongest gain since 2005 when this sales price rose 12.4 percent.
For experienced representation in handling your prospective real estate purchase or transaction, contact the attorneys at Giddens & Gatton Law, P.C. Giddens & Gatton Law, P.C. is located at 10400 Academy Road N.E., Suite 350 in Albuquerque, New Mexico. Call the office at (505) 633-6298 to set up an appointment or visit the firm’s website at giddenslaw.com should you have any questions concerning a real estate transaction you are considering.