A house for sale on Girard NE. Albuquerque’s home prices have reached all-time highs, while the inventory of homes for sale has reached a record low. (Adolphe Pierre-Louis/Journal)
The average sale price for a single-family detached home hit an all-time high in Albuquerque, while the inventory of homes hit a historic low.
According to a February 2022 report from the Greater Albuquerque Association of Realtors, the average home price stood at $367,566. The median sale price was $315,000 – tying the record set in December. Both averages showed an 18% increase year over year.
“It’s the highest that I’ve seen it,” GAAR president Bridget Gilbert said.
Moreover, Albuquerque’s inventory of single-family homes for sale reached a record-low of 540 in February, according to the report. That’s a decrease of nearly 40% year over year. And it breaks the previous record set in December 2021.
The record numbers go back as far as 2008, Gilbert said. Data going back further wasn’t immediately available.
New home builds have also slowed with supply chain issues hampering timelines, said Steve Duran, a local real estate agent with eXp Realty.
“There’s more buyers and they can’t build them fast enough,” Duran said.
Duran said an influx of remote workers, retirees and investors have identified Albuquerque as a “hidden gem” with home prices still lower than the national average. The market is so hot that buyers are paying as much as 25% over list price, Duran said.
Single-family homes have on average spent 16 days on the market before buyers make a purchase, according to the GAAR report. That’s a decrease of 10 days year over year. And the absorption rate – calculated using the amount of homes for sale at the end of a given month divided by the average monthly pending sales from the last year – currently sits at 0.5, showing that the metro area remains a seller’s market.
“This figure truly underscores the housing shortage we are experiencing,” Gilbert said.
The market has remained hot even in winter months when it is typically a slower time for both buyers and sellers. Both Duran and Gilbert said they expect the market to remain hot through the end of the year.
“The way it looks right now, it’s just going to keep getting hotter and hotter,” Duran said.