ALBUQUERQUE, NM - The local housing market ended 2008 much like the rest of the economy down, with no sign of recovery in the short-term. Almost every indicator, from sales prices to the number of closed sales and new listings, continued headed in the wrong direction except in one area: Sales prices for townhomes and condominiums have generally been stable or on the rise, depending on the month.
Don Padilla, chairman of the Greater Albuquerque Association of Realtors, says the trend is nationwide and probably fueled by the high gasoline prices of last year. "What we're seeing is the condo and townhome activity has picked up (in and around Downtown) to address the urban lifestyle rather than (people wanting to live) way out on the West Side," Padilla said. "When those gas prices spiked, there were some definite patterns of where people wanted to be. I think that the trend (nationwide) is going to be greener and to live closer in" to the city to reduce daily commutes and save money on gas.
The median price in December on townhomes/ condos was $164,000, an increase of 13 percent over the same month in 2007, according to the most recent statistics from the GAAR. However, existing detached homes saw the median price fall 10 percent last month, to $179,900, compared with $200,000 in December 2007, the GAAR report shows. The median price, the price at which half the homes cost more and half cost less - has not seen the $170s since February 2006.
Closed sales for December dropped to 412, or 20 percent over the same month last year, and new listings fell almost 14 percent year-overyear to 917. Of course, winter is offseason for home sales, so the numbers are always down this time of year, just not usually this far.
The number of homes on the market remained virtually unchanged from a year ago. There were 5,523 homes for sale in December 2007 and 5,222 last December. Though that's still high by historical standards, it marked a low in inventory for the year.
"The reason for that is that a lot of sellers in the Albuquerque area failed to price their homes correctly to get them sold," Padilla explains. "As their listing contracts expire, they don't re-list until March, April or May," when children are out of school and local move-up buyers are back on the market. The average time a home sat on the market in December was 76 days, down from 80 the month before but up from 60 a year ago.
Source: NewsEdge