Crunching the Albuquerque Market

This number crunch article takes a close look at the inventory of homes currently for sale in the Greater Albuquerque market areas.  Information such as average list price, days on market and a breakdown of where homes are being sold will provide a clear picture of what is going on in the local Albuquerque real estate market. 

Quarter Sales Report and the 2009 Annual Sales Report, both found at http://www.gaar.com.

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Market Conditions for Single-Family (Detached) Homes for Sale
Average Days on Market: 119
Median Original List Price:  $235,000
Current Average List Price: $315,460
Current Median List Price: $227,250
Average # of Photos (per listing): 13
% of Listings with Virtual Tours: 17%
% of all Residential property inventory: 85.10%

Breakdown of Inventory by Area:

MLS Area	Area Name	% of Inventory
10-121	City of Albuquerque	60.54%
130	Corrales	2.12%
140-162	City of Rio Rancho	16.65%
170	Bernalillo/Algodones	1.45%
180	Placitas	1.64%
210-293	East Mountains/Estancia Basin	7.87%
690-760	Valencia County	9.74%

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Market Conditions for Condo/Townhomes, (Attached) Homes for Sale
Average Days on Market: 124 
Median Original List Price: $165,000 
Current Average List Price: $315,460 
Current Median List Price: $227,250
Average # of Photos (per listing): 13
% of Listings with Virtual Tours: 13%
% of all Residential property inventory: 10.5%

Breakdown of Inventory by Area:

MLS Area	Area Name	% of Inventory
10-121	City of Albuquerque	87.41%
130	Corrales	0.68%
140-162	City of Rio Rancho	6.97%
170	Bernalillo/Algodones	0.68%
180	Placitas	N/A
210-293	East Mountains/Estancia Basin	N/A
690-760	Valencia County	4.25%

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Market Conditions for All Residential Property Types (Detached, Attached, Manufactured)
Average Days on Market: 120
Median Original List Price: $219,000
Current Average List Price: $292,843
Current Median List Price: $209,500
Average # of Photos (per listing): 12
% of Listings with Virtual Tours: 16%

Breakdown of Inventory by Area

MLS Area	Area Name	% of Inventory
10-121	City of Albuquerque	61.48%
130	Corrales	1.91%
140-162	City of Rio Rancho	15.28%
170	Bernalillo/Algodones	1.38%
180	Placitas	1.41%
210-293	East Mountains/Estancia Basin	8.22%
690-760	Valencia County	10.33%

Source: Southwest MLS, Inc.  Information deemed reliable but not guaranteed. 

Albuquerque Included in Top 10 Most Promising Housing Markets

Housing Predictor, which provides housing forecasts in 250 markets, has identified 10 markets that have avoided the subprime crisis and have thriving economies. Read more >

For bailout to work, housing market needs to mend

(AP) NEW YORK - Washington's financial bailout plan is now law. So the credit spigot will start flowing again, banks will resume lending, and an economic recovery can begin, right?... read more here.

Politics aside

· In this current marketplace, how does a 100% return on an investment sound and …
· Separating Facts from Myths.

Monday, September 29th, 2008 was the biggest drop on Wall Street in its history.

Tuesday, September 30th, 2008 was the third largest gain on Wall Street in its history.

The stock market’s volatility is directly impacted by “speculation” … is the economy going to improve or not, is unemployment going to go up or down, is the price of oil going to increase or decrease … and the list goes on and on. In the course of one day, records are set, as proven above.

Some Important Facts:

Mortgage loans are still available in abundance to the qualified borrowers.
Even though interest rates have increased slightly, FHA, VA, Conventional, and Jumbo loans are at historical lows.

Politics aside, Dave Ramsey, a popular Radio and TV financial advisor, was interviewed last night, September 30th, on Fox News Network, CNN, CNBC, (amongst others) and was asked: “In this current market turmoil, where would you advise people to invest their money?” He said, without hesitation: “The real estate market. There are great buys out there. There is an abundance of money available for those who qualify (have you heard that before) and the rates of return, purchased wisely, can be remarkable.”

Forbes.com reports:
Starting in 2010, housing price appreciation in metro Albuquerque is projected to lead the nation, due to job and economic growth, along with other factors. Housing starts are anticipated to increase by 26.6%, with single family increases of 26.4% and multi-family increases of 27.1%. How that correlates into overall market appreciation is not certain, but it can’t be a bad thing.
Money will be coming into the metro economy from baby boomer parents who move once the last child departs the nest. Albuquerque placed seventh on the list of cities attractive to this target group, due to our outdoor activities, arts, and moderately priced homes.

∙ Now to the scenario of a 100% return on our investment …

If someone were to buy a $200,000.00 home and elected to put 10% down, their investment would total $20,000.00.
Let’s say that the Forbes start “speculation” (remember that term in my opening bullet point) is overzealous and a more conservative “market appreciation” (not 0.00 % … not 26.4%) … let’s say … 10.00% (for this example).
That $200,000.00 home is now worth $220,000.00. ($200,000.00 x 1.10% = $220,000.00.)
Again, you invested $20,000.00 … in the course of 1 year … you earned $20,000.00. My math = $100.00% return. If accurate …Not bad, if you ask me.
The bonus…every day they can enjoy owning their new home (and that is FREE)!