By Ron Davis  –  Reporter, Albuquerque Business First
Updated May 11, 2022, 3:43pm MDT

For the third straight month, the Albuquerque metro has reached a new high when it comes to the median sales price of a single-family home.

The Greater Albuquerque Association of Realtors released its monthly report Tuesday. It found the median sales price to be $335,000 in April for a single-family detached home. That mark is a 15.4% year-over-year increase from April 2021's median of $283,375 and a $10,000 jump from the previous high of $325,000 in March 2022.

Overall inventory was down 27.2% from last April, but the 698 homes on the market is an increase from March's figure of 653 homes.

But the indicator Bridget Gilbert is paying close attention to days on the market. The 2022 GAAR president and qualifying broker of ERA Sellers & Buyers Real Estate said that days on the market is an indicator of how competitive the market is — and maybe the paperwork that follows.

GAAR's report found that a single-family detached home sat on the market for just 13 days in April, which is a 23.5% fall from April 2021.

"It's almost like there's a desperation out there," said Gilbert, who added that a broker in her office recently sifted through 17 offers on one house. "I'm thinking we might see a few more of the adjustable rate mortgages being used in order to get people into [new homes]. ... I think we might start seeing some changes in going from a 30-year fixed [rate] to possibly using some ARMs again."

Demand for an adjustable rate mortgage reached at a 14-year high, according to a report from CNBC on Wednesday.

Adjustable rate mortgages typically offer a fixed rate for five, seven or 10 years before the rate changes. The initial rate on an is usually lower than the fixed rate on a 15-year or 30-year mortgage.

"If you are anticipating buying, go ahead and start the search now. It's hard enough to find a home to buy, but to have to find the home and deal with the interest rates, I'm thinking sooner might be better," Gilbert said.

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

• Pending sales in the Albuquerque residential market decreased by 9.3% (1,124 sales) compared to the previous year.
• New listings decreased by 11.7% (1,266) compared to the same month in 2021. 
• Percent of list price received increased by 1.5% — to 102.5% — when compared to the previous year. 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.

Source: "Median Home Prices Continued to Rise as Albuquerque Market Reached Spring"