The shrinking Albuquerque Home Inventory was the hot topic around the virtual water cooler today (aka Facebook). It’s a hot topic because it is exciting for us Real Estate agents who have stuck it out through the difficult times in Albuquerque to see positive real estate numbers.
Albuquerque Home Inventory Shrinking
Increased sales and decreased active listings during the last quarter of 2011 caused home inventory to shrink noticeably. In fact, overall the number of homes on the market is the lowest it’s been in about 5 years. Right now there is about 6.8 months of inventory. Compare this with the 9 or 10 months of inventory we’ve seen over the last couple of years. Lower home inventory means the supply/demand ratio is balancing, a good thing for Albuquerque homeowners and a positive indicator that the market is beginning to shift. However, for Albuquerque home buyers this could mark the beginning of the end for one of the best times to buy a home in recent memory.
Home Inventory East of the Rio Grande
Being a stats lover, when I hear water cooler chat about what the market feels like to Albuquerque brokers I am always anxious to pull the numbers and see the stats. So here’s what home inventory levels looked like on the east side of the river in December 2011:
As you can see from the graphic above, 7 of the 15 Albuquerque MLS areas charted here had home inventory below the 6 month mark (depicted here by the red line). These areas of the northeast heights are both popular and more affordable than other areas like North Albuquerque Acres, Sandia Heights and Four Hills.
Home Inventory West of the Rio Grande
It should come as no surprise to anyone who’s been watching the market that levels of home inventory were not nearly as low on the west side. What is surprising is the high level of inventory in affordable areas like the south valley (areas 90 and 91), Ladera Heights (one of the absolute most affordable areas of Albuquerque) and Ventana Ranch.
Inventory in the northeast appears like a shift is already beginning to occur; inventory on the west side looks promising but less conclusive.
Will Albuquerque Home Inventory Continue to Shrink?
It will be interesting to see what happens over the next three months as the market prepares to enter peak selling season in May/June. Will Albuquerque homeowners see the lower inventory and rush to put their homes on the market? Will home buyers who have been sitting on the fence afraid to buy decide now is the right time to cash in on great prices and great interest rates? Will more foreclosures hit the market?
Stay tuned, only time will tell. But home buyers should realize one important thing-by the time anyone is jumping up and down announcing the housing market has recovered it will be too late, you will have already missed your opportunity to get in on some deals of a lifetime. At around 4%. Wow.
These statistics were compiled from the Greater Albuquerque Association of REALTORS® data on 01/23 /2011. This data is reflective of homes which were listed on the Albuquerque MLS; private sales are not included.