By Chris Keller  –  Managing Editor, Albuquerque Business First, Oct 10, 2022

You'll have to go back nearly two years to find data that shows the inventory of single-family detached homes in the Albuquerque market this high.

The 22% year-over-year increase reflected in the data in the Greater Albuquerque Association of Realtors report for September is a good sign that the local market is continuing to normalize, said Bridget Gilbert, the organization's 2022 president.

However, that normalization process comes with a catch.

Rising interest rates have changed just enough of the market's landscape over the last six months that buyers face a different challenge.

"The most common question we get from buyers is: 'Should I wait until rates go down'," Gilbert said Monday. "The answer I give them is: 'How long do you have to wait?'"

The latest figures show inventory climbed for the sixth straight month, reaching just over 1,400 homes in September. That's more than 2.5 times what it was in March and the highest it's been since October of 2020.

Homes are also staying on the market longer, according to the report. The average number of days on market reached 19 days in September, an increase of about 46% when compared to the same month in 2021.

"We have a long way to go to be in a buyer's market but we have been working with home sellers to explain that things are different than they were six months ago," Gilbert said of the changing dynamics which are — in part — driven by rising interest rates.

The decision in September by the Federal Reserve to increase interest rates marks the fifth time the regulator has done so this year. It believes increasing rates is the best way to deter rising inflation that consumers have seen when purchasing groceries or gas at the pump.

But each base rate increase has caused rates of home loans to increase as well. As of Monday, the rate for a 30-year fixed mortgage sat at 7.05%, according to Forbes.

Meanwhile, home prices in the Albuquerque market continue to show year-over-year increases. The median sales price for September reached $340,000.00, an increase of 15.25% when compared to the previous year, according to GAAR data.

Bridget Gilbert, 2022 GAAR President and qualifying broker of ERA Sellers
COURTESY BRIDGET GILBERT | BROOKE BAILEY

"I wish I had a crystal ball for people, but I think we're in for more increases before getting to a point of a decrease [in interest rates], " Gilbert said.

Among other benchmarks contained in GAAR's September report on single-family home sales in the Albuquerque residential market:

• New listings decreased 17.97% — to 1,027 listings — in September when compared to the previous year. This figure often follows seasonal patterns.
• Pending sales decreased 24.6% — to 852 sales — in September when compared to the previous year. This figure follows seasonal patterns.
• Closed sales decreased 26.79% — to 888 sales — in September when compared to the previous year. This figure often follows seasonal patterns.
• The percent of list price received in the Albuquerque residential market decreased 1.49% — to 0.993 — in September. The percent of list price is calculated by dividing a property’s sales price by its most recent list price, then taking the average for all properties sold in a given month. The figure does not take into account seller concessions.

Portions of this report were automatically generated by a computer application that analyzes data made available by the Greater Albuquerque Association of Realtors. Albuquerque Business First Managing Editor Chris Keller reviews the data and text before publishing.

Source: "Inventory of homes in Albuquerque market reaches highest point in nearly two years"