Albuquerque Real Estate - Housing Market Statistics - MLS Search

Absorption Rate: The number of months it will take to sell the current inventory of homes in a particular price range based on the current sales trend.

The following are the absorption rates for luxury homes in the Albuquerque area. These rates are general and based on a wide area. Narrowing your focus to your specific part of town will affect the numbers. If you are looking to sell your home, I will provide an absorption report based on your home to help determine its best listing price.

As you can see, we are currently in a buyers market. Now is a good time to purchase a luxury home in Albuquerque.

Not surprising, as the price of home sales increases, the number of home sales declines. What is surprising is that the $700,000-$799,000 range has the 2nd highest number of sales. Considering there is a HUGE drop from the $800,000 - $899,999 range, it is worth considering what price range might bring a faster sale. A price reduction of just a few thousand dollars could mean a much faster sale.

The monthly supply chart shows how many months it would take to deplete the inventory of homes currently listed in a price range if no new homes came on the market. Interestingly, the highest priced group is not the one with the highest level of inventory to deplete.

Having a good understanding of the absorption rate of your home can help price it for a faster sale. If getting top dollar is more important to you than a faster sale, then you must be prepared for how long it could take to sell your home.

An absorption rate is just an educated estimate based on past sales. Keeping up-to-date with the monthly absorption rate while your home is on the market can help you stay ahead of the curve so you can price accordingly.

Last weekend I was showing houses to a client relocating to Albuquerque. Sellers, please turn on the air conditioning! Unfortunately, 7 out of the 8 vacant homes we looked at in Tanoan were unbearably hot. It was about 90F and 60% humidity that day and these homes made it difficult for a potential buyer to consider them. Some homes were so hot my buyer didn’t even finish looking at them.

The one with the A/C on? My buyer spent a much longer time looking through that home–even going back through some of the rooms a second time.

The results of that day of home previewing? The buyer couldn’t remember alot of the details of the many hot homes we looked at, with the exception of one recent stunning home with breathtaking views of the golf course and the Sandia Mountains.

All of these luxury homes were in the $600,000-$800,000 price range.

Consider the fact that the holding cost of a vacant home far exceeds the utility costs of cooling the home for a few months–since making it easier to view the home will make it sell faster.

With over 7,000 homes currently on the market, 512 of them luxury homes, your home has to really stand out! Making the house in the comfortable 72F-74F range can leave your prospective buyers with a more positive, lasting impression of your home. Remember, not everyone looking at your house is used to the desert heat. Don’t leave you home a "hot house"!

Sellers, please leave the utilities on! Buyers need to be able to see the house. Even during the day, some areas of the house and garage can be quite dark. This can make for some dangerous, unfamiliar stairs or steps.

Remember, showcase your beautiful home with plenty of light!

Simply stated…An amount of money offered with the purchase agreement to show the sellers that your are serious about purchasing their home. A homeowner will want to know this before agreeing to take their home off the market. Typically in Albuquerque, earnest money can range from $1,000-$1500 for less than $250,000 and $3,000-$5000–up to $500,000. This is always negotioable, but needs to be reasonable to the seller. Earnest money is generally held in escrow with a title company in Albuquerque and is credited to the buyer at closing. .

For brief definitions of other terms, visit my Real Estate Glossary.

Recently, Realtor.com released its home value tool. Simply enter your address and it returns an estimate of home value. Zillow.com released a similar estimator a few years ago. Unless you enjoy reading fiction, I suggest bypassing these tools. NM is a non-disclosure state. What that means is that home sale prices are not public information so the estimates are really just a wild guess. Just pick a number between $26,600 and $1,197,000 and you now have a home value.

Let’s take a look at three random examples. Since we are a non-disclosure state, I will only list general location information. These are based on actual home sales in the last 90 days.

Example One:

Home in High Desert:

This luxury home has 3 bedrooms and 2 baths with 2769 sq. ft. and sold for $555,000.

Zestimate: $539,000. If you went with this, you would have left $16,000 on the table.

Realtor.com: $312,500 and $667,128–what a heck of a range!

Example Two:

Condo in Glenwood Hills:

This great condo has 2 bedrooms and 2 baths with 1226 sq. ft. and sold for $168,000.

Zestimate: $244,000. Your unit would sit for…a very, very long time at this price.

Realtor.com $26,600 and $196,788. I would take a dozen at the bottom price!

Example Three:

Home in North Albuquerque Acres:

This pool home has 4 bedrooms and 4.25 baths with 4522 sq. ft of luxury living, sold for $770,000.

Zestimate: $518,000. What a bargain!

Realtor.com: $380,247 and $1,197,000. If you are looking for a home value like this, one of my cats would be happy to assist you.

In all fairness, Zillow does address this issue in their post regarding non-disclosure states and Realtor.com does so on their non-disclosure FAQ page.

Don’t try this at home…Home values are best left to the professionals. Don’t make a wild guess with one of your largest investments. If you are looking to sell your home in Albuquerque and want a home value based on fact–not fiction, contact me today.

If you are a buyer wishing to make an offer, look to your agent for knowledgeable advice on what the home is worth. For top-notch buyer representation, give me a call.

These statistics were compiled from the Greater Albuquerque Association of REALTORS®, Realtor.com, and Zillow.com on 07/17/2008. Information was obtained from sources deemed reliable but not guaranteed. This information should not be used to determine the value of any property. Photos are for illustration purposes only and do not represent the examples in this post.

Simply stated…This is most typically seen when a buyer writes a check for earnest money as part of a purchase agreement. In Albuquerque, a title company usually acts as the escrow agent. The check is deposited with them after the offer is accepted. They will then apply the amount of the check as a credit to the buyer at closing or, if the contract is terminated, the title company will disburse per the instructions in the contract and only with the signature of all parties involved.

For brief definitions of other terms, visit my Real Estate Glossary.