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Monthly Newsletter from Sandi Pressley

New Mexico Real Estate Overview

Data from the National Association of Realtors® shows that existing-home sales dipped in May for the second straight month, with only the Northeast region seeing sales growth. However, in New Mexico, total existing-home sales were almost the same number that they were in May of last year, at 1397 sold listings. This is actually a .2% increase over the last year, showing a stable market. Total existing-home sales for the nation (transactions including single-family homes, townhomes, condominiums and co-ops) fell 0.4% to 5.43 million in May from 5.45 million in April. With this dip, sales now sit 3.0% under a year ago and have dropped for three straight months.


NAR's chief economist, Lawrence Yun, said a healthy economy and job market should be leading to a brisker sales pace than we've seen in 2018. “Closings were down in a majority of the country last month and declined on an annual basis in each major region,” Yun said. The longtime NAR economist added, “Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.”
NAR's chief economist, Lawrence Yun, said a healthy economy and job market should be leading to a brisker sales pace than we've seen in 2018. “Closings were down in a majority of the country last month and declined on an annual basis in each major region,” Yun said. The longtime NAR economist added, “Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.”
 
In New Mexico, the median list price for all housing types in May was $249,000, up 9.21% from May 2017 ($228,000). 
 
Total active listings in New Mexico fell 9.9% from May of last year from 3989 to 3596 existing homes available for sale. Year to date, the number is only down 2.6%, from 12,499 total homes for sale during 2017, to 12,171 homes in 2018.
 
Total U.S. housing inventory at May's end grew 2.8% to 1.85 million existing homes available for sale, but remains 6.1% below than last year (1.97 million) and inventory nationwide has fallen for 36 straight months.

Individual markets vary, but properties nationwide remained on the market for 26 days in May, unchanged from April but a day lower than 27 days on market for all of 2017.

Per Freddie Mac data, the average commitment rate for a 30-year, conventional, fixed-rate mortgage bumped up for the seventh consecutive month to 4.59% in May from 4.47% in April. The average commitment rate for all of 2017 was 3.99%

First-time buyers drove 31% of May's sales, down from 33% both last month and a year ago.

The Price Is Right...Or Is It?

Dining room view of home listing

If you are planning to put your home on the market -- especially if you live in a place where prices are rising and buyers are competing for homes -- it can be tempting to list your property at a high price hoping that you'll actually get it. After all, it can work with cars, why not with homes?

You may want to think twice -- the resale of homes and automobiles are very different things.

Experienced Realtors who have been through dozens, scores, or even hundreds of transactions, will advise you to price your home appropriately from the outset because it's pivotal to seeing the home sold quickly and at the best price. Research backs up what experienced Realtors already know: overpricing your home and then lowering the price a few times most often leads to a final sales price significantly below what you originally should have asked for it.

And, to make matters worse, the longer a home remains on the market, the deeper the discount is likely to be off the original price. Ouch!

How to price your home correctly

Many homeowners seek to price their home based on factors like the price they paid for it, the balance that they currently owe, or simply on the profit they need to buy another house or to meet their financial goals. These motivations are perfectly understandable but in reality the value of your home is what the market will bear. Here's the problem: If a property is overpriced, some potential buyers will avoid looking at it at all (and having no one show up to see it is a pretty clear message from the market). Others may view the home but walk away without making an offer.

So, what can you do? Choose a Realtor who can provide you with the best comparative market analysis (CMA) and who understands your local area intimately. Some agents may attempt to woo you with an inflated price -- it probably happens every day somewhere -- but in the end the market will speak clearly, and choosing an experienced Realtor who understands the importance of market-driven pricing will end up being a choice you won't regret.

Your Realtor's CMA should include sales prices for similar properties nearby that have sold recently, prices for currently listed homes (these will be your competition), and prices of homes that were taken off the market because they didn’t sell. Look for a Realtor with demonstrated experience who can factor in a range of local market issues to produce that all-important first price.

If the price is right from the beginning, it usually means not only a faster sale, it typically means more money in your pocket.

Explore the Fascinating History of Albuquerque

What really defines a city? Is it the people? The food? The culture? In the case of Albuquerque, it’s all these things, but even more so, the history of this unique city.  Albuquerque is one of the oldest cities in America. Officially founded 312 years ago in 1706, Native Americans called this place home for thousands of years. Today, Albuquerque embraces that past while looking forward to the future. It’s easy to see into the fascinating past of Albuquerque, through monuments such as the ancient rock carvings at Petroglyph National Monument, the vintage neon signs along Route 66, or the historic Old Town Plaza.

The area that would become Albuquerque has been populated and cultivated as far back as 2000 B.C. European influence on the area goes back to around 1540, when Spanish explorers under General Francisco de Coronado arrived. Colonists were granted permission in 1706 by King Philip of Spain to establish a new city, named in honor of Francisco Fernández de la Cueva, 10th Duke of Alburquerque, Viceroy of New Spain.  You’ll notice that the first “r” in the name has disappeared over the centuries, probably due to the difficulty in pronouncing the name, bringing us the modern spelling of Albuquerque.

The rich history of Albuquerque is evident in the daily life of residents, particularly in the Historic Old Town.  It’s a place where you can get away from the hustle and bustle and step back in time as you go about your modern affairs. Residents and visitors alike enjoy shopping in more than 100 stores and galleries that feature the stunning artwork of the Southwest. You’ll also find world-class exhibits in the Albuquerque Museum, New Mexico Museum of Natural History and Science, and Explora Science Center and Children's Museum.

The architecture of Old Town hasn’t changed much since it was built over 200 years ago. The beautiful plaza still hosts events much as it did so long ago.

The beautiful and amazing past of Albuquerque is just waiting for you to explore and call home. If you’re looking for the ideal home in this historic city, contact us today, or search for a home online. And make sure to check back on our blog twice a week for more great reasons to call Albuquerque home.  And don’t forget to follow us on Facebook for the latest Albuquerque real estate news.

Contact Information

Photo of The Sandi Pressley Team Real Estate
The Sandi Pressley Team
Coldwell Banker Legacy
10400 Academy Rd. NE Suite 100
Albuquerque NM 87111
505-980-2999
505-263-2173
Fax: 505-212-0729

Quick links to this site are also SandiSells.net or SandiSellsHomes.com