Albuquerque Home Prices Up | Rio Rancho Home Prices Down
Average Albuquerque home prices were on fire in June 2013, average Albuquerque home prices were up 9.49% compared to June 2012. Albuquerque sales volume was also up by a staggering 23.35% in June 2103 over sales in June 2012. The averages sales price has climbed stedily in Albuquerque for the last three months. Albuquerque homes that are pricd right sold4.84% faster in June 2013 than in June 2012. The average time for a home to be placed under contract was only 59 days in June 2013. It is amazing to me how fast the Albuquerque market has shifted from a buyers market to a seller’s market. I wrote an article in December 2012 titled Albuquerque Housing Market Set to Rebound. In the article I pointed to many indicators that the market was set for a rebound. The surprise is just how fast the market has rebounded. Many buyers still think they can buy homes well below market value and that just is not the case. In many cases, home owners that price their home at the market will receive multiple offers.
So the Average Albuquerque home prices are on fire in Albuquerque. What the heck is going on in Rio Rancho. The average price for homes in Rio Rancho dropped by 11.17% from June 2013 compared to June 2012. The average home price in Rio Rancho also fell by 6.62% in May 2103 compared to May 2012. The average home price in Rio Rancho also fell by 11.12% in April 2103 compared to April 2012. Home prices are dropping dramatically but the number of homes sold is off the chart. Check this out, the number of homes sold is up by 39.53%, 34.13%, and 36.08% in June, May, and April of 2013 as compared to the number of homes sold in 2012. I was wondering how can this be true? The Rio Rancho market in the last two months (maybe longer, I only looked at the last two months) is dominated by distressed properties like short sale and bank owned home. The Rio Rancho sales for June 2013 was nearly 40% distressed properties while the Albuquerque market in June sales was slight less than 20 distressed properties. Albuquerque Foreclosures and Rio Rancho Foreclosures will sell at a discount to the resale market. I believe that Rio Rancho needs to work through the high levels of distressed properties before the average home prices will improve. This probably won’t take long with the increased number of sales in Rio Rancho.