2008 Residential Home Sales Report, Greater Albuquerque Area

An official report from the Greater Albuquerque Association of Realtors (GAAR) supports my findings in my earlier unofficial report on Active Rain. Single family detached homes are at their lowest since 2001 and townhomes and condos are at their highest. Here is the press release.

Albuquerque, NM, January 28, 2009 -- The Southwest Multiple Listing Service, Inc. (SWMLS), a subsidiary of the Greater Albuquerque Association of REALTORS® (GAAR) reports that home sales units decreased by 25.07 percent from 10,961 units sold in 2007 to 8,144 units sold in 2008. If compared to annual sales to previous years, sales levels for 2008 are similar to the levels in 2001.

For 2008, three areas in the Greater Albuquerque market area showed an increase in units sold compared to 2007 sales. Average sales prices for Single Family (R1) homes show a decrease of 4.3 percent, from $243,089 in 2007 to $232,626 in 2008. The median sales price for Single Family homes decreased by 3.5 percent from $198,500 in 2007 to $191,500 in 2008. The average sales price in 2008 for Condo/Townhomes (R2) was $162,783, compared to $161,290 in 2007, a .9 percent increase. The median sale price for Condo/Townhomes rose by 3.4 percent from $149,000 in 2007 to $154,000 in 2008. For the Greater Albuquerque market area, ten MLS areas showed a positive increase in average sales prices when compared to the previous year.

Don Padilla, chairman of the Greater Albuquerque Association of REALTORS®, says “2008stats demonstrate steady activity in our local market, and the small decrease in median and average sales price reflects that our market activity is not dominated by a lot of foreclosure sales.”

The 21,297 listings added during 2008, decreased by 21.1 percent from the 26,979 added in 2007. This significant decrease can be attributed to the already high amount of existing listing inventory. The area’s listing inventory of single family and condo/townhomes in 2008 was at its highest level ever for the market area. This is one indication of 2008 as a “buyer’s market,”

When comparing total dollar volume of Residential Home Sales in 2008 to 2007, a decrease of $698,052,191 is shown. In 2007 the total dollar volume was $2,398,316,501versus $1,700,264,310 in 2008. Another indicator of the local market conditions is the days on market (DOM) it takes to sell a home. The DOM for Single Family homes in 2008 began in January at 71 and fluctuated close to that level throughout the year to end at 76 in December. Although this number is higher than in previous years, it is not cause for alarm. (Emphasis mine.) Looking further at the DOM breakdown in 2008, it’s safe to say most of the homes sales in Albuquerque, Rio Rancho and the East Mountains took place within the first 30 days of being listed. Press Release of the Greater Albuquerque Association of Realtors.

I chose to highlight that there is no cause for alarm because many indications reinforce the fact that there is indeed none, not least of which is the news item published concurrently by salary.com that Albuquerque is in the top five cities for building wealth.

The City of Albuquerque - An Update

The Founding of Albuquerque
Albuquerque, New Mexico is over 300 years old. Before the Spanish explorers arrived, Pueblo Indians chose the fertile spot on the bank of the Rio Grande to grow their crops. With the arrival of the Europeans, the small trading post grew. Eventually spanning both banks of the Rio Grande (the Nile of New Mexico) Albuquerque became an important stop on the Camino Real, and is today, the state’s largest city with over half a million people.

Early Years
In its early years the city expanded north and south along El Camino Real, Old Route 66, and east-west as the route got realigned along Central Avenue. Old Town, built in traditional Spanish style around a plaza is a good starting point for a visit to Albuquerque.

Arrival of the Railroad
The arrival of the railroads led to another growth spurt which helped define and shape the city in ways that are still evident long after the heyday of the railroads. Someone familiar with railway towns overheard my comment about the seemingly odd configuration of clusters of commercial and manufacturing areas across the city and gave me the simple and obvious explanation – business followed the path of the railroad.

New Growth
The city is currently in another rapid growth phase; this time mainly across the river towards the west. Go West in Albuquerque. The northeastern side of the city already developed up to the foothills of the Sandia Mountains leaves room only for infilling of areas bypassed in periods of previous development.

The Northeast
Of the four quadrants into which the city is divided, the northeast is the oldest, most developed and most populous. Well established over a number of years, this part of town is where you will find Old Town, Sandia Laboratories, the University of New Mexico, and ABQ Uptown with its new upscale office buildings, shops, and restaurants. Many of the most expensive homes in the city are also found in this part of the town. As available land becomes developed, lots and home prices have increased.

The Northwest
The northwest quadrant is undergoing rapid development Bulldozers and earth movers seem to be everywhere as large tracts of previously undeveloped lands give way to new housing,. Single family homes, and an increasing number of commercial and industrial sites wrap around the Petroglyph National Monument and skirt the edge of the high mesa where the five sleeping sisters .(small extinct volcano cones that outline the area) have remained undisturbed for thousands of years.

The influx of new residents and subsequent explosion in residential and commercial development across the city led to a spate of road and highway construction to keep pace with the needs of the growing population. The “Big I” connector of the Northeast finally has company in the new Coors/I-40 Overpass in the Northwest, with another expected at I-25 and Jefferson.

Southeast Development
The development of the northeast section of the city progressed naturally into the southeast. Thus the southeast quadrant is home to both older elegant and no-so-elegant neighborhoods that border on long-established Sunport National Airport and Kirtland Air Force Base, both of which cover extensive tracts of land that prohibit out further expansion of the city towards the southeast, except for the most recently found Mesa del Sol lands now under development just south of the airport. Mesa del Sol is a master-planned mixed-use, sustainable development of 13,000 acres within the city limits.

The Southwest
Large parts of the southwest, such as the South Valley, have been largely agricultural land that border on pueblo lands (Isleta) farther south. More recently, as is happening all across the city, the areas of the south west are seeing the gradual introduction of small residential developments, and long-time dwellers of the area are learning to cope with these and accompanying commercial infrastructure, anchored by “big boxes.”

Quality of life
The attraction of the city lies in its charm, its people, the high desert climate, an inspirational landscape and the quality of life it allows. Biking, running, and hiking trails and paths along the Rio Grande and through the Sandia Mountains encourage outdoor activities and attract sports enthusiasts from around the world. You can step out your door and walk straight up into the mountains, or you can leave your downtown office and in less than half an hour, be on the cable car for a fifteen minute ride to the top of Sandia Peak for an afternoon of skiing, then return to an evening on the town in the city without concerns about snow or inclement weather. Golf courses are well maintained and accessible to all.

The west side offers gorgeous views of peachy-red dawns, a flourishing bosque fringing the river, and Sandia Mountain views as opposed to the nearby, in-your-face foothill views of the northeast. Few sights are more glorious than the Westside view of the sun rising behind the Sandia Mountains.

City Attractions
Throughout Albuquerque, great restaurants abound. Food has been inexpensive and people eat out a lot. In-town venues like the historic Kimo, the Hispanic Cultural Center, the Pueblo Cultural Center, the University of New Mexico, and museums and galleries offer a rich cultural feast of theatrical and musical performances, art and craft shows, and exhibitions. Nineteen pueblos offer shows, feast-day celebrations, casino entertainment and gaming throughout the year. The annual, two-week-long balloon fiesta is of international proportions, http://www.balloonfiesta.com/.

Surrounding Areas
If these attractions turned out to be insufficient, Albuquerque, at the center of Bernalillo County in the middle of the state, is easily accessible to a wide variety of attractions in surrounding cities and counties. Jemez, Santa Fe (the capital city), Taos, Angel Fire, Chaco Canyon, Acoma, Bosque del Apache, and White Sands, are only a few of the beautiful places with marvelous attractions only a day trip or less away from the city.

Reasons to Live in Duke City
Duke City, our favorite name for Albuquerque, named for the Duke of Albuquerque, is a special place. If you get the chance to visit, you should. At least fifty percent of the people who live here say it was love at first sight. They came to visit and stayed or returned to live. The charms of the area are no longer a well-kept secret. They have been discovered and publicized. The city is the recipient of many accolades. Among other things, it is the best place to raise a family, start a new business, work, and play. It is a top-ranked southwestern city. Visit Albuquerque. You, too, will want to stay and we will welcome you. The city is a great introduction to the state of New Mexico, the Land of Enchantment.

New Mexico Celebrates the Inauguration of Barack Obama

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New Mexico joins  the rest of the nation and the world in celebrating the inauguration of Barack Obama   as the 44th President of the United States of America.

The inauguration represents the true coming of age of the nation founded by a people who set  out on a pilgrimage to find freedom and enshrined in their Declaration of Independence their desire to found a nation where all men (and women) were created equal with inalienable right to life, liberty and the pursuit of happiness.

Our nation, after pursuing that dream for over 230-years,  is seeing its fulfillment. The inauguration of Senator Obama cements the place of the United States of America in history and in the world as a beacon of democracy and a model for every nation to follow.  People are not judged by the color of their skin but by the content of their character.  (Dr. King)

The inauguration of Barack Obama as the 44th President of the United States of America represents the establishment of a new order and way of life that ushers in a better, brighter and more just tomorrow. It represents the true dawning of an age of enlightenment not just for the United States of America but the whole world.

Eloise Gift

Albuquerque, NM Market Update

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Eloise Gift

At this time last year, the predictions for our real estate market in Albuquerque, NM was that we would be saying good-bye to the downward shift in 2009. In November, only two months ago, Albuquerque was on Forbes Magazine top ten list of cities poised for early recovery from the slump. A look at our end of year, December statistics do not, at first sight, reveal an imminent recovery. The prices of houses in the Greater Albuquerque area have not made a dramatic nosedive, neither have they improved. Rather, they continue to decline. The average price of a home in the Greater Albuquerque area is now $218,633 and the median is $179,900.

 

Sales volume also, declined. December sales were 104 fewer than in December 2007 and almost one half of our December 2005 high of 900 sales. See Albuquerque New Mexico Home Prices. Nevertheless, resale listings also declined.  So our inventory, although still comparatively high, has decreased. The December 2008 inventory of 5,222 homes, twice as high as that of December 2005, was actually lower than the inventor of December 2007. A glimmer of hope? Perhaps!

Also another glimmer of hope in the December, Albuquerque market statistics was the decline in the number of days it took to sell a house --5% fewer days than just one month before in November.

The combination of a gradual price decline, lower interest rates, fewer new housing starts resulting from a drastic reduction in the number of building permits, job retention and a strong injection of new jobs could be the stimulus for the predicted rebound for 2009-2010. 

Last Free Rides to Santa Fe

This is the last weekend of free rides on the newly completed section of the rail runner that now goes from Belen to Santa Fe. As happened at the opening of the first leg from Belen to Albuquerque, the Albuquerque to Santa Fe section that opened just in time for the holiday season offered free rides.

An overwhelming number of folk turned out to take take advantage of the free rides. Based on newspaper accounts, many were disappointed with the overcrowding of the cars and others for not being able to ride at all. It is left to be seen if the popularity of the trains will remain as high following the last free rides this weekend. Will regular commuters between Albuquerque and Santa Fe start leaving their cars at home? Personally, I plan to go for a ride as soon as the crowds abate.