A report from the Greater Albuquerque Association of Realtors found the median sales price for a single-family home in the metro area increased 26.09% — to $290,000.00 — in May 2021 when compared to the previous year.

By Ron Davis  –  Reporter, Albuquerque Business First (Updated Jun 11, 2021, 6:47am)

A year ago, Albuquerque's single-family housing inventory had tightened to historic levels. According to May 2021 data in the latest Greater Albuquerque Association of Realtors report, the market's inventory has eclipsed that mark.

While inventory increased by nine listings between April and May, the 691 homes across the metro area represented a decrease of 62.6% when compared to the previous year. For comparison, Albuquerque's inventory approached the 4,000 mark in May of 2016.

“Two months in a row with similar number of new listings to pending sales shows that the market is starting to flatten,” said Belinda Franco, 2021 President of GAAR in a statement. "However, the average percent of list price received increased to 101.5 percent shows there is still a lot of competition and a busy market.”

The percent of list is calculated by dividing a property’s sales price by its most recent list price, then taking the average for all properties sold in a given month. The figure does not take into account seller concessions.

Meanwhile, indicators that reflect the cost of homebuyers to get into the market continue to climb.

The median sales price for a single-family home increased 26.1% — to $290,000.00 — in May 2021 when compared to the previous year. And the percent of list price received exceeded 100% for the second straight month. The mark of 101.5% in May represents a 2.63% increase over the previous year.

Among other benchmarks contained in the report:

• New listings decreased by 1.1% — to 1,423 listings — in May when compared to the previous year.
• Pending sales increased 10.4% — to 1,428 sales — in May when compared to the previous year.
• Closed sales in the Albuquerque residential market increased 24.8% — to 1,148 sales — in May when compared to the previous year

Each of these figures follow seasonal patterns.

Business First reported in May on Re/Max finding Albuquerque to have the lowest inventory of homes among 53 metro areas surveyed at just a 0.4 month's supply of homes. Denver-based Re/Max describes a six-month supply of houses as equally balanced between buyers and sellers, Business First reported.

According to the St. Louis Federal Reserve, in the Albuquerque MSA, there were 340 single-family permits pulled in April, compared to 109 a year ago.

Alan Shettlesworth, president and CEO of Albuquerque's Main Bank, which issues loans to homebuilders, is bullish on the demand for residential construction. Shettlesworth added the caveat of construction supply delays and prices could possibly take some out of the market.

"There appears to be more action across the board, and I think nothing's stopping it," Shettlesworth said of the demand.

Click for more GAAR Market Statistics.

Source: "Inventory of single-family homes in Albuquerque market at historic lows per May report"