At the beginning of 2014, the Albuquerque Real Estate area has a stable 6 months supply of homes for sale. Currently there is a shortage of homes for sale throughout much of the nation.
Recently I attended a conference where Dr. Lawrence Yun, a chief economist and Sr. Vice President of the National Association of Realtors, analyzed national real estate data. While the US housing market is on a slow, steady path to recovery, a number of factors, including housing supply, interest rates, & perceived economic recovery play key roles in the future of local real estate markets.
Interest rates are another key factor that influence real estate mortgage rates. While interest rates have crept up a little during the past year, they are still at historic lows. They are currently at 4.43% for a 30-year fixed mortgage in New Mexico. Use New Mexico Mortgage Rates to review the trend for the past month. It is expected that the interest rates will continue to rise, which will negatively influence home values, affordability, & purchasing power.
Home prices increased an average of 12% nationally in 2013. Appreciation rates are expected to improve another 5% before stabilizing across the nation in 2014. By comparison, Albuquerque only experienced a 3 to 5% appreciation in 2013. However, since our Albuquerque market tends to lag behind the nation, it is anticipated that our city will experience higher appreciation during the next few years before the metro real estate market levels off.
Here are some fun facts to share…
- The number of home sales nationwide was up 10% in 2013 over the previous year
- Closed sales in Albuquerque were up 19% in 2013
- Median home prices were up 12% nationally in 2013
- Median home prices were up 2 to 5% in Albuquerque in 2013
- 33% of buyers in 2013 were all cash, whereas the norm is around 10%
- Rental rates are expected to increase 5.3% in 2014
- The busiest week to move in 2013 was July 27
- The average size of a home purchased was 1875 sq ft
- 29% of homes were sold to first time buyers
- The median price of a house in the US was $197,100 in 2013, up from $176,800 in 2012
- The average cost of a bathroom remodel in 2013 was $15,782. The average kitchen remodel set you back $52,931.
During 2013 I sold many luxury properties and was invited to be a member of the Albuquerque Elite 25 Realtors. This is an exclusive group of seasoned, top producing realtors who specialize in marketing and selling the finest homes. To be invited to join Elite 25, a realtor must consistently list and sell these luxurious homes.