| Publication: Jnl Final Edition 8/2005-today; |
Date: Jun 29, 2008; |
Section: Real Estate; |
Page: G1 |
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Sales prices on Albuquerque homes rose in May
Journal and Wire Report
Sales prices of existing,
detached homes in the Albuquerque area increased in May, despite continuing
signs of a market slowdown.
The median sales
price last month was $205,000, a 3 percent increase over the same month last
year, according to the Greater Albuquerque Association of Realtors. It marked a
jump of $16,000 over April, statistics show.
May's year-over-year average sales price also
went up slightly - by half a percent to $247,295. This latest figure marks a
$20,000 jump compared with April, which may be explained by the sale of seven
homes priced at more than $1 million that month.
Cathy M. Olson, chairman of the association,
attributes the price increases to a few
factors: A larger number of the more expensive homes are selling, and the price
of homes generally has gone up as quality has improved.
"Albuquerque felt a pinch with the subprime
market, but once we got through that, people in Albuquerque decided to get loans
and to also move up. So we had some great move-up potential from local buyers,
and then with the business climate, we've had some relocation.
"It's about population, and it's about business
growth."
Still, fewer homes are selling: The
area has seen a 34 percent decrease in closed sales from last year, with 1,020
sold in May 2007 to 674 this past May, according to the GAAR.
Time on the market has remained stable in recent
months - about 65 days - but that's an increase
of about 76 percent compared with last year.
The
Albuquerque market remains in stark contrast to many other urban areas,
particularly where prices are concerned.
While
prices tend to jump during the summer, which is peak buying season, the nation
generally is bucking that trend this year.
U.S.
home prices tumbled in April at the fastest rate since a widely followed index
was begun in 2000. The Standard & Poor's/ Case-Shiller home price index of
20 cities fell by 15.3 percent in April versus a year ago, according to
Tuesday's report.
Prices nationwide are at
levels not seen since August 2004.
All 20
metropolitan areas surveyed posted annual declines for the first time.
Albuquerque is not part of the survey.
The
narrower 10-city index declined 16.3 percent in April, its biggest decline in
its more than two-decade history.
Meanwhile, a
report from the Office of Federal Housing Enterprise Oversight said U.S. home prices fell 4.6 percent in April from the same
month last year, when the index peaked. That marked the biggest decline ever in
the agency's monthly index, which dates back to January 1991.
The government index is calculated using
mortgage loans of $417,000 or less.
While the
government report has shown nationwide price
declines, the Case-Shiller index has shown far greater drops because it focuses
on larger cities where prices rose further during the boom years, and includes
riskier loans.
No surveyed city stayed above
water, according to the Case-Shiller index. The last holdout, Charlotte, N.C.,
finally succumbed to the national housing downturn, with prices there slipping 0.1 percent from a year ago.
Las Vegas, Nev., and Miami continue to post the
largest declines, falling 26.8 percent and 26.7 percent, respectively.
However, the annual declines in Denver, Dallas
and Cleveland were less severe than in the previous month.
The report also showed prices in eight metro areas increased in April from March,
but the gains could be seasonal blips as the home-buying spring season starts up
rather than a sign of a turnaround, Maitland said.
For a more complete snapshot of the local
market, go to www.ambr.com, the Web site for the Albuquerque Realtors group.
JOURNAL